Hard Money Mike

About Hard Money Mike

Hard Money Mike is an asset-based lender headquartered in Littleton, CO offering loans in Colorado, Kansas, Minnesota, Missouri, Oklahoma, Utah, and Wisconsin. They provide lending solutions for a variety of situations, including commercial hard money loans and fix and flip hard money loans. They offer loan amounts ranging from $50,000 to $1,000,000 with a maximum LTV of 70%, terms between 1 month and 1 year, and rates ranging between 7% and 12%. They lend money to all borrowers based on the property value and do not require a minimum FICO score. They will make loans on most property types, including single family homes, multi-family, apartments, office units, retail units, storage facilities, and mixed use buildings.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Storage, Mixed Use

Areas Served: CO, KS, MN, MO, OK, UT, WI

Loan Example 1

Tamara finds a townhouse in Minneapolis, MN to remodel and re-sell. Since she does not have enough cash to purchase the $150,000 project outright, she decides to take out a private money loan from Hard Money Mike. The terms of the note include a 65% loan to value (LTV), so she must bring 35% of the price as cash at closing, making the principle loan amount $97,500. The rate on the note is 9% for a term of 18 months and the company requires a five point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle will be repaid after the property sells.

Tamara will have to bring $52,500 to closing (35% on the 65% LTV), plus she will pay the $4,875 origination fee. After the deal closes, she will pay the lender $731 in monthly interest fees, or 9% multiplied times $97,500 divided by 12 months in a year. Tamara 's plan is to finish the renovation within the 18 months and re-sell it for $187,500. If she succeeds she will collect a gross profit of $19,463 ($187,500 sales price - $97,500 principle amount - $52,500 funds brough to closing - $4,875 origination fee - $13,163 in total interest paid.

Loan Example 2

Arlene takes a fix and flip loan from Hard Money Mike so she can remodel a townhouse to re-sell in Minneapolis, MN. The loan has the following terms:

a) A $350,000 purchase price, b) a 85% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 3% origination fee.

Arlene intends to list the property at the end of the term for $507,500. If she succeeds, the outcome will be the following:

$507,500 sales price
- $297,500 note principle (85% LTV)
- $52,500 cash paid at closing (15% on 85% LTV)
- $8,925 origination fee (3% of the $297,500 principle amount)
- $49,088 total interest paid (18 months x 11% interest)
-----------------------
= $99,488 total profit (does not include taxes or rehab costs)

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