Q: How do I submit a loan request?

A: Fill out our short pre-approval form and a representative will contact you within 24 hours (during normal business hours).

Q: What is a hard money loan?

A: A hard money loan is any loan secured by a “hard asset” like commercial or residential real estate.  It is sometimes called a bridge loan, private capital loan or private loan.  A hard money loan is a first mortgage on investment real estate.  A hard money lender looks to the property as the primary collateral as opposed to the borrowers credit score or other factors.  A hard money loan is an alternative to a traditional bank loan.

Q: What are the typically properties you finance?

A: Our portfolio consists of residential and small commercial(1-4 single family unit) investment properties. For example, single family homes, smaller apartment buildings/converted apartment buildings and small retail/residential buildings. 

Q: Do I need to submit any documents at loan request?

A: Once we receive your loan request*, we’ll give you a call to discuss the project. Once we determine that the loan fits within our lending criteria, we’ll set up a loan profile for your project and send you a link where you can upload required documents directly. Access the application here. Please visit the Lending Page for required documents.

Q: What type of borrower typically utilizes this lending service?

A: Our borrowers are real estate investors seeking fast financing for fix & flip or fix & hold properties. Borrowers seeking hard money financing are not looking for a long-term loan but rather a 4-12 month, interest only, loan to quickly finish a project and exit the loan by sale or refinance. 1210 Capital is not licensed to provide loans to principal residence or individuals. The applicant should have or obtain a commercial entity for investment financing.

Q: Do you lend on a primary residence?

A: No. Due to State and Federal laws, consumer mortgage loans require strict disclosures, capped fees and interest rates. 1210 Capital only lends on commercial or investment properties.

Q: I don’t have the best credit score. Can I still get a hard money loan?

A: Yes. If you have a credit score which may raise questions, be prepared to provide us with proof that your loan will be successful. In some cases, we will take extra underwriting measures before risking capital on the deal. You’ll need to present a clear exit strategy, proof of adequate funds/income, experience as a rehabber(portfolio of past projects) and provide a detailed plan for your project. If your exit strategy is to fix & hold the property, you’ll need to provide proof that there will not be any issues refinancing out of our loan.

Q: What are your rates and terms?

A: There is no formal rate matrix since each deal is so unique. We price each deal aggressively based on the individual needs of the client, property type, loan to value, location, etc. As a general rule, interest rates are typically 11-13% with points ranging from 3-5. 1210 Capital loans have 12 month terms with a 4 month minimum prior to payoff. There are no pre-payment penalties after the 4th month of interest payment. Please visit our Lending Page for more information.

Q: What areas do you typically lend in?

A: We are currently focusing on financing investment properties in Pennsylvania, New Jersey, Delaware and are quickly expanding to other areas as well.

Q: Do I need to have upfront funds to close a loan?

A: Yes. Loan closing closing are paid at the funding table. Borrower also needs to have funds readily available to begin construction prior to draw advances and cover any remaining balance to purchase the property. Proof of funds should also show that the borrower has liquidity set aside for the project, including interest payments.

Q: What are the lender fees?

A: Each deal is underwritten differently based on borrower/project criteria. However, hard money loans generally cost 3-5 points.  One point equals 1% of the loan amount. In some cases you will have to pay for an appraisal prior to closing and subsequent inspection fees during draws. A document preparation fee, as well as a small processing and wire fee are paid at closing. 1210 Capital will disclose all loan fees upfront.