A hard money loan is fast, short-term financing secured by the investment property itself, focusing on the asset’s value and potential rather than the borrower’s credit score, typically used for renovations or quick acquisitions.

Reputable Hard Money Lenders like Lake Norman Private Money Lending offer interest-only repayment terms. For example, if you were offered a $200,000 hard money loan, with a 10% interest rate, your monthly payment would work out to $1666.66. Here’s how it works:

• Amount Borrowed: $200,000
• Annual Interest Rate: 10%
• Monthly Repayment: Amount Borrowed * Annual Interest Rate / 12
• Monthly Repayment: $200,000 * 10% / 12
• Monthly Payments: $1666.66

In other words, your monthly payment only covers the interest portion of the capital that was borrowed. However, you are required to pay back all the capital that was borrowed when the hard money loan expires.

It helps to think of it as a balloon payment,  but instead of paying a portion of the capital back, your balloon payment covers 100% of the amount borrowed.

Speed is one of our greatest advantages—we know that in real estate investing, the difference between a good deal and a missed opportunity is often measured in days.

You can get pre-approved online in 5 minutes and receive an instant term sheet and proof of funds. Our full, final approval process is typically completed in 24–48 hours after submitting all necessary documentation. We then aim to close and fund your loan in 7–10 days, keeping your project momentum high.

While the interest rates on traditional loans are typically lower than hard money loans, the approval process is far more stringent and time-consuming. This can be a dealbreaker when you spot an opportunity for a fix and flip. In most cases, you need to move swiftly in order to capture the deal. That is why a hard money lender like Lake Norman Private Money Lending can be so useful to investors. Effectively you get:

• Flexible loan terms
• Easy loan applications
• Less stringent financial requirements
•  Speedy approval and closing
• Instant proof of funds