FAQs

Hard money is the industry term used to describe private financing options that differ from the traditional route of going with bigger corporations or banks. Typically, hard money loans come from a network of private lenders who have approved their finances to be given to qualified borrowers on real-estate deals with equity in them. In certain cases, borrowers need this money available to them quickly for a short period of time to do a construction or rehabilitation project on a property for profit, so they do not want the hassle of waiting for large bank to analyze everything and give them their approval. In other cases, borrowers using hard money have had some kind of past income related concern or a poor past credit history preventing them from being approved for a regular loan by the bank, so they have to explain their circumstances and use hard money until they can qualify for alternate financing.

Lending Bee offers both purchase and refinance hard money loans on single-family residences, multi-family residences, commercial, industrial, retail, and land properties. Between the large network of qualified, accredited investors and our own privately managed fund, Lending Bee, Inc, our company can help with all of your Hard Money lending needs.

• Most Common Loan Amounts – $50,000 – $10,000,000 +
• Interest Rates Starting At – 7.99%
• Loan Terms – 6 – 36 months (most common)
• Types of Properties – SFR; Multi-Family; Commercial; Industrial; Warehouse; Retail; Land
• Loan to Value Ratios – Up to 75%*
  • Depending on the loan scenario (location; condition of the property; etc.)
• Credit Requirements – 600 + preferred (599 and below needs additional review)
• Income Requirements – Not Applicable in Hard Money Lending*
  • Proof of borrower funds may be requested in a purchase scenario
  • Letter of Explanation may be required on occasion to explain hardship or other potential concerns.

Lending Bee has worked with countless clients and structured numerous deals. Sometimes we’ve had to get creative, but if it was possible to make it work, we did everything in our power to make that happen. Whatever your terms are, feel free to contact our skilled team of professionals and we will do our very best for you!

Typically, Lending Bee aims to close all of our deals in 5 business days. We have an in-house underwriting and processing team that will work on all deals using their expertly trained skill and knowledge of the hard money field. They will do everything in their power to work closely with the Escrow & Title Companies to clear and meet conditions as efficiently as possible, as well as, collaborate with brokers to ensure the borrower portion is taken care of also.

While Lending Bee will do everything we can to ensure the prompt processing and closing of all deals, the complexity of the loan scenario plays a part in the turnaround time of the loan. For example, a construction loan may take longer than a SFR loan, or one borrower may be more responsive than another. Those are some things our company cannot control, however, what we can control is being up front with an approximation of what we think will happen based on our prior experience. We always keep our clients informed and part of the process throughout the entire process.

Lending Bee offers business purpose hard money loans.

This means that you can either receive a hard money loan for an investment property that you do not live at, or it means that you may borrow against your home for a business related expense, but not one of a personal nature. For example, you may take out money against your home to pay for a business expense that doesn’t have anything to do with your actual place of living, but you may not take out the hard money loan in order to help you pay your mortgage for the home you live in.

Lending Bee requires proof of occupancy during the loan underwriting and processing stage. Every borrower is required to disclose their home address, as well as, the address of the property that they are obtaining the hard money loan for, or “the investment property.” The borrower is also required to obtain insurance for their investment property that covers loss of rent since it is not owner occupied. This should be kept in mind when applying for Lending Bee hard money financing.

It depends on the loan scenario and terms. Depending on the lender, the particular property, or the areed upon loan scenario, there may or may not be a prepayment penalty.

Lending Bee works with agents and brokers who are certified to provide a Broker Price Opinion (BPO) valuation or provide an appraisal when needed. Additionally, either these agents or other qualified personnel can perform both an exterior and interior property inspection should it be deemed necessary. We have numerous local agents, as well as, trusted contacts that we can reach out to when necessary throughout the state of California.

The good news about Hard Money Loans is that they are not nearly as strict as traditional lending options. While this means that your credit history and score may not be scrutinized as deeply as it would’ve been otherwise, this does not mean that it will not play a role in your qualification.

Our team of trained professionals will review your credit report and determine whether we have any lenders willing to provide financing in this situation or not. The severity of the credit concern will play a part in the decision. For example, an outstanding mortgage payment, a filed bankruptcy or matters of public record are of greater concern than a late credit card payment or a medical collection. The credit score can also effect the loan terms for the deal—someone with better credit could qualify for lower rates than someone with poor credit, however, this would all have to be reviewed on a case-by-case basis.