A hard money loan is a loan funded by a private party who wants to make a higher return. Unlike conventional loans, these loans are designed to help investors buy properties or rehab properties. These loans are typically short-term with minimal credit requirements as they are made based on assets.
Hard money lenders provide funding much faster, typically in a matter of days, not weeks or months. We also have fewer requirements. We are asset-based lenders that focus on collateral, while banks require both strong collateral, cash flow and a high credit score.
In our experience, even real estate investors with strong finances and access to bank financing choose private money loans for many reasons. This includes situations that: require fast closing; require a cash offer; present a great investment opportunity but there is insufficient strength to get a bank loan; or a bank line of credit is not larger enough.
To apply for one of our loans, we will require that you provide any deadlines crucial to your transaction, the property address, the purchase price, the purpose of the loan, the intended renovation budget, and the intended asking price for the property. We will also ask about your experience level and history.
We typically lend up to 65% loan-to-value, or 75% loan-to-cost.
Yes. Direct Investors can get you pre-qualified very quickly! Apply today and you can get funding in a matter of days.
Direct Investors will finance land, non-owner occupied single family properties, duplexes, multi-family properties, apartment complexes, commercial properties and many other types of properties throughout Nevada, Utah, Arizona, and Idaho. Our programs range from standard fix and flip loans for investors to construction loans and buy and hold loans.

We also fund auction purchases and offer probate loans.
We specialize in asset-based lending, not credit-based lending. Because these loans are short-term and based on the value of the property, we can lend to borrowers with poor credit.
After repair value is a common term among real estate investors and it refers to the future value of the property after construction or rehab is complete. This value is usually determined through a future value appraisal or comparable sales. This number is especially important in construction loans and rehab loans, as it will usually determine the maximum loan amount for the transaction.

Using the ARV offers many benefits to borrowers, such as greater leverage and less cash out-of-pocket to complete projects. For example, assume a property with a purchase price of $200,000 and an ARV of $300,000 that requires $20,000 in rehab. Hard money lenders usually lend up to 65% of the property value, which would give a maximum loan amount of $130,000 on the as-is or purchase price of the property. The borrower would then need $100,000 in cash to buy and rehab the property. Using the ARV, the borrower could receive a loan of $185,000 and need only $45,000 in cash.
Trust deed investing is a way to invest in real estate-secured loans. Most investments are short-term and mature in 2-5 years and they are made to professional real estate investors. Trust deed investors are one source of capital for private hard money loans. Brokers work with trust deed investors to fund hard money loans for borrowers.