What is a hard money loan?
Hard money is the term used for loans funded by private parties. Camden Investments is a broker who arranges loans for borrowers and sells notes to private investors.
Real estate investors use hard money when they are unable to or do not have time to obtain financing from more conventional sources. Typical banks won’t fund these properties because of condition or the fact that a full-time investor isn’t typically W2 employee. These loans are also called rehab loans or bridge loans. Bridge Loans are also available for primary resident borrowers looking to bridge equity from an exiting property to purchase a new property without needing to sell first.
Do I have to pre-qualify?
Most sellers and listing agents will require a pre-qualification letter at the time an offer is presented, so best practice is to be ready with a pre-qualification prior to submitting an offer.
How do I get pre-qualified for a hard money loan?
First step is to complete a Loan Application.
Fill out the required information completely and we will review and request any supporting documentation needed to finish the application and pre-qualification.
Upon approval, you will be given a “Letter of Credit.”
Do you provide a “letter of credit?”
Yes! Upon review of the application, a general letter of credit will be issued to those who qualify. However, this is not a commitment to fund any transaction at any certain amount. Nor is it a “proof of funds” letter.
Amount of the letter of credit will range between $200,000 and $1 million dollars. The amount will be based on experience, ability to make monthly payments, and in a large part, on the client’s cash reserves.
What are your terms?
Camden Investments has different loan programs to help investors in a multitude of projects ranging from your standard flips and rehabs to new construction loans. See our main hard money loan page for a complete breakdown. We lend in California only.
Costs and fees will vary depending on the program. Entities (Corporations, partnerships, LLCs, etc.) are accepted as are self-directed IRA accounts.
We will explore the programs to find which best fits based on our criteria and investor model and the terms for each. We will consider small residential commercial projects on a case-by-case basis.
What States do you fund in?
How long does it take to close the loan?
Our loans can close in as little as 7 business days assuming we have all documentation signed correctly and returned in a timely manner. Closing times may vary by loan program (longer-term and construction loans typically take longer).
Quick closings are possible only with your help! We need all the documentation, escrow instructions, proof of correct insurance, clean preliminary title report, and all docs signed correctly and timely for us to close quickly for you. Speed for your transaction is very dependent on your response time!
Each transaction is handled on a case by case scenario. If there is a special requirement, we may be able to accommodate you but tell us up front what you need on a timeframe.
What types of property do you fund?
Non-owner occupied residential, single-family properties from 1-4 units. Our programs range from a standard fix and flip to buy to hold as rentals to new construction. However, if you have small apartment buildings, please give us a call, we may be able to assist you. These are business purpose loans.
Can I live in the house during the course of the loan?
No. You will be signing loan docs that state you will not be living in the property.
Are there prepayment penalties?
On some programs, yes. Our fix and flip and new construction products do not have a prepay penalty. For our Rental Purchase and Refinance Programs, there is a prepay. Please see specific programs for more details.