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

Lending Guidelines for Hard Money Mike

Below are the general loan guidelines published on the Hard Money Mike website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Hard Money Mike.

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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