Private Lending and Hard Money Loans

Direct Private Lender for Hard Money.

Cap One Lending is a direct private lender for hard money loans. This is important when choosing a lender because you skip the middleman or broker which saves you time and money. Our portfolio products have the lowest rates and fees and are ready to close in about 5 days.

What is a Hard Money Loan?

A Hard Money Loan is a short-term bridge loan that is titled in your business name and is secured by a hard asset such as real estate.  There are several types of hard money loans that we offer including Bridge Loans, Transactional Funding, Fix and Flip and Fix and Rent Loans.

Who uses Hard Money?

Real Estate Investors use hard money loans to purchase, refinance and cash out investment real estate.

Businesses use hard money for short term bridge loans. Business owners frequently need additional cash for expansion and leverage.

Builders and Developers use hard money to build homes and develop land.

Why use Hard Money instead of a Bank?

If you can find a bank to do Hard Money Lending, it will generally take months to close. In general, banks do not like short term lending because there isn't enough profit to be made.  At Cap One Lending, we eliminate most of the red tape with limited documentation and flexible guidelines which allows us to close your loan in record time. We believe in an easy and efficient process allowing more time for you to focus on what you do best and that is your business.

How do Hard Money Loans work?

Please check out our loan products, criteria, documentation, and the steps to fund your hard money loan below. Please contact our dedicated team to discuss your goals and answer any questions you may have before starting the process.

Apply Now

Loan Products

Standard Bridge Loan

The Standard Bridge Loan is a short-term loan secured by real estate, offered to business owners and real estate investors who need capital for cash flow or to purchase a property until permanent financing can be obtained. We will loan up to 90% of the purchase price or 80% of the as-is value. Whichever is less. 

Transaction Funding

This is for real estate investors who purchase real estate at a wholesale price with the intent to sell to an end buyer within a short period of time (as little as one day). The end buyer could be another investor, hedge fund, consumer, etc. Example: An investor gets a property under contract September 1 with a close date of September 30. The investor will start marketing that property for sale as soon as its under contract and will attempt to find an end buyer who will close as soon as October 1. We will loan up to 90% of the purchase price or 80% of the as-is value. Whichever is less.

Fix and Flip

This is for real estate investors who want to purchase a property they intend to improve and sell for a profit. This loan program can include rehab funds held by the borrower or lender. We will loan up to 90% of the purchase price and 100% of the rehab funds or up to 100% of the purchase price if the borrower funds their own rehab. 70% max after repair value. 

Fix and Rent

This is for real estate investors who want to purchase a property they intend to improve and refinance into a rental loan. This loan program can include rehab funds held by the borrower or lender. We will loan up to 90% of the purchase price and 100% of the rehab funds or up to 100% of the purchase price if the borrower funds their own rehab. 70% max after repair value. 

Benefits of a hard money loan may include:

• 1% Monthly Interest Payments
• No Application Fee
• No Pre-Payment Penalty
• Same Day Loan Approval
• Loan Closing as little as 5 days

Loan Criteria

Borrower: Shall be a business entity.

Collateral: Non-owner-occupied Single family, Duplex, Fourplex, and Townhomes.

Areas we Lend:  All 50 States excluding MN, ND, NV, OR, and SD.

Term: Up to 2 years.

Loan Amount: 100k to 2 million.

Credit Score: Minimum 660 credit score.

Origination: Starting at 2% with a minimum fee of $3,000.

Processing: $795.

Wire: $30.

Inspection Fee (If applicable): $199 for initial inspection and consecutive draw requests.

Extension Fee (If applicable): 1% or $1,000, whichever is greater.

3 Steps to Fund your Hard Money Loan

Step 1: Get Preapproved.

Please complete the document list in step 1 to become preapproved for a hard money loan through Cap One Lending.

• Business Application: One member will be required to complete section 1, 2, and 3 of the Business Application. Each additional member will only need to complete required fields on page 1 and the personal information on page 3. 
• Identification: Provide a valid Driver's License or Passport for all Members.
• Entity Documents: Provide your EIN, Articles and signed Operating Agreement/or Bylaws showing percentage of ownership.
• 24-month REO Track Record: Required for new investors with Cap One Lending.

Step 2: Receive Term Sheet.

After step 1, please provide us with the following documents in order to receive a term sheet.

• Purchase Contract: (Purchase Only) Provide contract, assignments, amendments and addendums signed by purchaser and seller.
• Original Settlement Statement: (Refinance Only) Submit original Settlement Statement.
• Rehab Budget: (Fix and Flip/Rent Only) Submit using our rehab budget. The scope of work should be as thorough as possible to receive maximum financing.
• Asset Statement: Provide the most recent business bank statement showing funds to close. This account should show your business name, bank name and account number. This account will be used for monthly ACH payments.

Step 3: Receive Final Approval.

It's time to complete step 3 so we can fund your loan.

• Property Inspection: We will need access and contact information to schedule a property inspection. Please provide current pictures or video of the property. 
• ACH Form: Provide a voided check or bank verification of the account with account and routing number.
• Wire Instructions: Provide wiring instructions for reimbursement of construction costs in construction funds are included in loan.
• Insurance: Insurance requirements will vary based on loan product. Please verify requirements with your Loan Officer.
• Title: Title insurance with 24-month chain, CPL and wire instructions will be ordered through Jeff Hayward at Alliance Nationwide Title.

What to expect after your final approval.

• Closing: Once all documentation has been reviewed and accepted, your loan will be clear to close. Your Loan Officer will schedule a day and time that is convenient for you to sign closing documents.
• Funding: Loans will fund the same day closing documents are signed provided all members and guarantors sign before wire cutoff. Note: If you are a member/owner of the business, you will be required to sign the Guaranty at closing.