Hard Money Lending (HML) loans are short term (one year), and do not require real estate as collateral.  There is no title seasoning, or early payment penalty associated with the loans.  4R Management offers investor friendly HML/Rehab loan programs.  Payment schedules and interest rates vary with type of loan program.  Please review the specific details and qualification criteria of each of our uniquely designed plans:

HML/Rehab Programs

General

Loan: 100% of the sale price and 100% of the repair funds, not to exceed 65% of the ARV (after repair value)

Length: Six (6) months

Prepayment penalty: None

Down payments: None, the loan will be 100% of the sale price.

Closing costs and fees: The average closing costs (points and fees) for the loan range between 5%-9% of the loan depending on the amount of the loan. Closing costs and fees are due at closing. They may be paid from the loan, the buyer, or from seller concessions/assists, as long as the total loan amount does not exceed 65% ARV.

Property: Residential (4 units or less) non-owner occupied

States included: Illinois, NW Indiana, SE Wisconsin

Rehab Costs: Repair funds go into an escrow account. The escrowed repair funds are paid out on a reimbursement basis. Draw Inspections are required to ensure completion of work prior to funds disbursement. Copies of the receipts and/or lien waivers must be provided with the funds reimbursement request.

Approval: Pre Approval – 5 to 7 business days*

Closing: Less than 15 business days once all documentation is received*

*These times are dependant upon receipt of all required information.

Monthly Payment Plan

Credit score minimum: 620

Interest only payments (no principal) until the property is sold or refinanced. The interest rate is 15% per annum or 1.25% per month.

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Cash Out Refinance

Credit score minimum: 620

If you have possession of the property for rehab, you can opt for cash out refinance up to 65% ARV.  If there is an existing mortgage, it will be paid off with the proceeds of the financing. 

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Rehab Costs Only

Credit score minimum: 620

If you have possession of the property for rehab, you can request hard money for the rehab costs for the property.  Minimum rehab amount of $30,000 is required. 

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