Type of Loans

What is a Hard Money Loan?

By definition, a hard money loan is a very specific type of loan. Hard Money revolves around asset-based loan financing. The borrower receives funds secured by the value of their real estate. Hard money loans will typically be issued under private investors or companies (such as ourselves), as opposed to banks. Because of this, the interest rates of hard money will generally be higher than more conventional commercial or residential property loans. That is because the risk is higher than conventional real estate loans.

Most hard money loans are used for short-term projects. They typically last from a few months to no more than a couple of years. The criteria reviewed when considering a good candidate for a hard money loan varies largely by the lenders. However, most hard money lenders primarily qualify this type of loan based on the value of the real estate being secured. The value of the property is the primary guideline for loan evaluation.

Why use Hard Money Loans?

Hard money loans may be sought by property flippers who plan to renovate and resell the real estate. The higher cost of a hard money loan is offset by the fact that the borrower intends to pay off the loan relatively quickly.

The main reason is the ability of the hard money lender to fund the loan quickly. In most situations, hard money loans can be funded within a week. Compare that to the 30 – 45 days it takes to get a bank loan funded.

The ability to obtain funding at a much faster rate than a bank loan is a significant advantage for a real estate investor. Especially when the real estate investor is trying to acquire a property with many competing bids, a quick close with a hard money loan will get a seller’s attention and set their offer apart from the rest of the buyers offering slow conventional financing. A borrower may choose to use a hard money loan if they have been rejected by the banks for income that cannot be verified, foreclosures, or credit issues. Hard money lenders are able to look past these issues as long as the loan is repaid, and the borrower has enough equity invested in the property.

Fix-n-Flip or Rehab Loans

When you have a good deal, you need to move fast. We pride ourselves on our ability to consistently deliver on time because we understand time is money!

Get Pre-Approved and issued a POF letter should you need one
Submit your deal and we will gather your documentation and guide you through the underwriting and closing process
Closing costs financed, no hidden fees
Deferred Payment Plans
Interest paid only on drawn amount of loan
Every deal is customized to fit your construction schedule not ours

Refinance and Cash outs

Borrowers can easily receive liquid funds within days with no proof of income. This fast option is for real estate investors looking to take equity from an existing investment property to reinvest funds elsewhere.

Borrowers must have enough equity in their investment property
Loan can be distributed as a lump sum or used as a line of credit
This flexible loan is for investment properties only. This includes single family houses, condos, multi-family, mixed use and commercial
No prepayment or minimum term

Foreign Real Estate Investors

Foreign nationals and residents of other countries often find it nearly impossible to secure financing to purchase investment real estate in the United States. But here at Equity Based Capital, we believe that investing in the American dream shouldn’t be hard. We lend on real estate, and we’ll work to help you secure the loan you need to achieve your investment goals.

We do not finance owner occupied properties
Personal homes may be as collateral based on equity available
We finance short term rental (Airbnb) properties
Never a prepayment penalty

Commercial Bridge Loans

Bridge Loans are designed to “bridge the gap” between selling a property and purchasing a new one. Investors use this cash as a down payment on another property or other investment purposes.

Perfect for investors who needs cash for closing a transaction
This loan can be used to secure property while waiting for traditional financing
Bridge Loans are backed by property equity rather than credit or past issues
Fast closings and quick approvals

Probate, Trust & Estate Loans

If your probate/trust is in the process of being completed and funds are needed, to complete the transaction, Equity Based Capital may be able to help.

Not all heirs want assets and Equity Based Capital can provide the funds to “buyout” -so you can retain property
Tax liens or small liens can be paid off at closing to provide a clean title
Pay Legal fees
Approval in days, not months

Where Equity Means More Than Credit.

Equity Based Capital is a direct hard money lender based in Branford, CT. With more than 30 years’ experience in equity-based lending, EBC specializes in financing for individuals and companies whose needs are not fully met by traditional banks. Loan approvals have emphasis on EQUITY not credit and income documentation.