As an investor, you know great deals don’t last long. Get pre-approved now so you’re ready to strike on your next opportunity. We offer fast funding for up to 100% of the purchase price.
up to 100%
Call to get pre-qualified in just 24 hours
Close in as little as 5 business days
Minimal docs and no income verification
Serving real estate investors since 2009
Rates and requirements may vary in California.
Call (866) 376-4876 to learn more.
When you find a good deal, you need to move fast. And you need a lender you can count on. We pride ourselves on our ability to consistently deliver on time and under pressure because that’s when it matters most.
Apply online and one of our loan officers will get in touch to help you get pre-approved and provide a proof of funds letter should you need one.
Submit Your Deal
After you’ve found your deal, your loan officer will gather your documentation and guide you through the underwriting and closing process.
Flip Your Property
Rehab your property and resell within 12 months.
Let’s start with the basics: What is a hard money loan? Also known as bridge loans, flip loans or rehab loans, this type of financing helps real estate investors buy and repair investment properties.
Hard money loans are different from the loans offered by banks, credit unions, and mortgage lenders. One big difference? Hard money loans don’t have to conform to standard underwriting requirements. That means real estate investors can use hard money lending to not only purchase distressed properties but to rehab and repair them. Without the rigid underwriting requirements, hard money loans can typically close quicker than other forms of funding, which is crucial when it comes to securing a competitive deal.
Another difference between hard money and conventional loans? Hard money loan amounts are based on a property’s potential, after-repair value, rather than a property’s current, “as-is” value. That means working with a hard money lender allows investors to finance properties as if they were paying cash.
Taken together, these characteristics make hard money loans a tool investors can use to close deals quickly and optimize leverage.
Hard money loans offer an alternative to conventional loans for a range of buyers. They’re especially helpful for “fix-and-flippers,” or real estate investors who buy distressed properties, then repair and rehab for sale or to rent.
Flippers sometimes need to make real estate investment decisions on a dime. We understand the need for speed; that’s why we offer such a fast approval process. Often, our hard money loans are closed and funded in just 7 business days!
But not all real estate investors want to fix and flip. Many wish to purchase distressed properties to repair and rent to tenants. Rental loans help landlords maximize their investment opportunities through a range of rehab, refinance, and purchase-only options.
Unlike conventional or bank loans — which focus on individual credit-worthiness — hard money loan underwriting is based largely on the future value of the asset the investor is purchasing. Our loans are available to real estate investors that meet certain credit and liquidity requirements, rather than first-time homebuyers or buyers who plan to live in the property they wish to purchase.
Why do so many borrowers choose hard money loans over traditional loans? As investors know, time is money in real estate. When funds are needed within a short period, banks and mortgage lenders simply can’t deliver on time.
In contrast, we offer a quick, easy process that leads to closed, funded loans in as little as seven days. Hard money loans are an ideal choice for real estate investors who need fast access to funds.
Bridge loans offer flexibility, as well. Banks, credit unions, and other traditional lenders have rigid underwriting requirements. Many won’t fund distressed property loans or offer funding for rehab and repair. Bridge loans are designed so investors can purchase distressed properties, then rehab them to increase their value through sale or renting.
Best of all, hard money loans are based on a property’s future value, not a current, “as-is” condition. This means more money to work with… and more leverage.
Speaking of leverage, how can an investor make the most of their hard money loan? When an investor wants to purchase a fix and flip, they may choose to use their own money to do so. In most cases, this means draining an account, then waiting to recoup those costs until the repairs are complete and the property is sold or rented.
In contrast, taking out a hard money loan means less out-of-pocket cost. The investor can use the bridge funding to purchase and repair the property without draining their account. That leaves their own funds available for other investment projects.
This way, investors use just a small percentage of their cash on hand and leverage it to make more.
We provide hard money loans for landlords, flippers, and brokers. We fund distressed investment properties, including detached single-family residential properties with one to four units.
Most hard money loans are short term to cover the time it takes to repair the property and refinance or resell it. At Sherman Bridge, we offer a variety of purchase-only and fix-and-flip loans with a 12-month term and the option to extend the term if needed. We also offer 36-month rental loan programs designed for buy-and-hold investors.
Most of the underwriting is performed on the asset you are purchasing verses the individual, although a credit score above 600 and a minimum of $30,000 in liquid assets are required. Our loans are not available to first time homebuyers, and the purchaser can not occupy the homes during the life of the loan. Loans are only made to real estate investors.
Typically, loans close within seven business days from when the real estate investment purchase contract and rehab budget is received.
Sherman Bridge lends hard money loans at a minimum of $75,000 and a maximum of $4,000,000.
Although third party closing fees traditional to real estate transactions can be expected, such as title company fees, appraisal, survey, and etc., Sherman Bridge itself only collects two fees for closing a loan. The first is a loan origination fee, which is a flat percentage of the loan amount, and the second is a processing fee for all of the documentation and admin work involved to close the loan. These fees may differ based on loan type, so please refer to the loan type you are requesting to determine your exact fees.
Sherman Bridge is limited to certain geographic areas because of the amount of hands-on involvement in each property. Currently, we lend in 19 states and the District of Columbia. Also, we will use a 3rd party appraisal to evaluate the estimated after repair value (ARV) on the property to ensure it will be profitable once sold or leased. Sherman Bridge will only loan on properties that are 1-4 unit single family residences, not rural and are permanent, non-mobile housing.
All applications are subject to underwriting guidelines and approval. This does not constitute an offer to lend. Not all applicants will qualify for all loan products offered. All loan programs, terms, and interest rates are subject to change without notice. Other restrictions and limitations may apply.