Loan Types

Hard Money & Joint Venture Partnerships

Select Funding, LLC’s private money/hard money loan program is designed for Chicagoland real estate investor professionals. Our reliable hard money loan programs make the process of investment funding fast and easy. In fact, our loan process enables our clients to close their purchases in as little as 10-14 business days! We work with investors refinancing or buying REOs, short sales, real estate auctions, private party, and even residential construction projects.

 

As a hard money lender, our program focuses on single-family residential properties and 2-4 unit residential properties in the Chicago and immediately surrounding Chicagoland area.

 

What is a Hard Money Loan?

hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk taken by the lender. Most hard money loans are used for projects lasting from a few months to a few years. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

 

Why Hard Money Loans?

Private Loans or Hard Money loans allow borrowers to get financing much quicker than through a bank.
Because we are a private lender, we have different requirements for loan qualification. Our main requirement being the equity on the property.

 

Because we are a direct lender, we are more flexible than a bank and are able to fund your loan in as little as 10-14 days.

 

Hard Money Terms:

Term of Loan: 6-9 months
Interest Rate: 1.5% per month
Prepayment Penalty: None
Loan Minimum: $50,000.00
Maximum Loan To Value: 50% of the future, after-repaired value or below
Origination Fee: Determined on a case-by-case basis