7 Best Hard Money Lenders in Arkansas

Between the Ozark and Ouachita Mountains, Arkansas offers lush forests, scenic valleys, and vibrant cities such as Little Rock, Bentonville, Fayetteville, and Fort Smith. Home to about 3 million people, it combines small-town charm with urban conveniences. The state’s diverse economy, driven by aircraft production, steel, tourism, and poultry, provides a unique mix of tranquility and opportunity.

For those that are hoping to buy property on the real estate market in Arkansas, there is some good news. The state as a whole has more affordable property than many other areas. In fact, the average sale price of a home in Arkansas in August of 2022 was $156,800. That is one of the most economical state-wide averages in the country. The affordability of homes here is due to the more relaxed living and more rural aspects of much of the region. It is still possible to find homes priced much higher, especially in the suburbs around Little Rock. Still, even those homes remain competitively priced.

There is a large number of people in the state that rent their homes rather than buy them. The U.S. Census Bureau found that 67.2% of people own the home they reside in, and 32.8% of people lease them. That’s significantly higher than many other states. Keep in mind that, as of this information, about 5.5% of rentals are vacant. That is a low overall percentage and may indicate that there is demand for additional real estate investments here.

How hard money loans work

A hard money loan in Arkansas may help investors fund real estate rental properties that may be in demand in some areas of the state. A hard money loan is a secured loan on a piece of real estate. As secured loans, the lender will maintain the ability to force the sale of the property should the borrower stop making payments on the loan as agreed. That is important for many reasons, but mostly because it means that lenders in this area are willing to loan to borrowers who may not have the best credit.

Hard money lenders in Arkansas typically will set the terms and conditions for these loans based on their own established guidelines. Keep in mind that lenders offer versatility to meet most needs, but these loans tend to have a slightly higher interest rate than other types of real estate loans and mortgages. That is due to the increased amount of risk that private money lenders take on when offering these loans. Because they often lend to borrowers with lower credit scores or on properties that are income producing properties, the risks of default are higher. That leads to a higher cost.

In addition to this, most Arkansas hard money loans are short term loans. They are typically paid off by the borrower within 1 to 5 years, depending on the terms agreed to. That helps to limit the overall impact of the higher interest rate. Because these loans tend to be more readily available for fix and flip homes, rental investments, and commercial real estate development, most borrowers will pay off the loan in full within that short term, or they will refinance it into a long-term loan at a lower interest rate. That can help to make borrowers more accepting of these loans.

7 Top Arkansas hard money lenders

Some lenders only offer hard money loans to experienced investors, while other programs can lend to those that are pursuing their first real estate investment.

1. BridgeWell Capital 

BridgeWell Capital got started in 2008 and, according to their website, has funded over $500 million in real estate investment deals. They lend throughout the midwest and eastern part of the country and offer the typical suite of private money financing.

We contacted BridgeWell Capital to learn more about their private lending business and here are some of the highlights:

• Rental loans require 25% down
• Residential and commercial properties ok
• No tax returns or income verification
• 5-year rental loan term
• Fix and flip loans can cover 100% of rehab costs
• Up to 75% ARV
• No interest on undrawn rehab funds
• No pre-payment penalty

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. New Silver

New Silver started in 2019 by Kirill Bensenoff and Alex Shvayetsky. They offer a variety of private money lending products like fix and flip, rental, ground up and personal loans.

We contacted New Silver Lending to learn more about their private lending business and here are some of the highlights:

• Origination fee from 1.875%
• Loan to cost up to 90%
• 100% construction financing available
• Loan to ARV up to 80%
• Terms are typically 24 months
• Loan amounts are from $100,000 to $5 million
• Minimum FICO score is 650
• No hard credit pull required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

• Loan amounts for purchase prices $100,000 up to $5 million
• Investment properties only
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV
• Rates start at 7.25%
• Interest only payments
• Loan terms are 9-24 months
• Foreign nationals are eligible
• No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. EquityMax

EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.

We reached out to EquityMax to learn more about their hard money loans and these are the key highlights that you need to know:

• Single Family Homes
• 1-4 Multi-Unit Properties
• Residential properties like Condos and Townhomes ok
• Commercial property and Industrial Warehouses OK
• Direct lender that has decision making over financing deals.
• Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
• No prepayment penalties
• No minimum credit score required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. Fund That Flip

Fund That Flip is a hard money lender based in New York that focuses on short term bridge loans for real estate investors looking to flip properties. Founded by Matt Rodak in 2014, Fund That Flip lends in most states.

We contacted Fund That Flip to learn more about their bridge loan program and here is what we found:

• Up to 80% LTC and 70% ARV ratios for your project
• Rates start at 9.99%
• Direct lender with discretionary capital
• Ground up construction projects ok
• 10% down payment required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

6. HouseMax Funding

HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.

We reached out to HouseMax to learn more about their hard money lending process and here is what we found:

• Minimum loan amount is $75,000
• Lends up to 75% of the after-repair value (APV)
• 1-3 points origination charge
• 3 months reserves required
• Direct lender that approves loans internally and funds using their own private capital.
• Lends in urban and suburban communities in all 50 states.
• Goal is to close loans in 10 days or less.
• Specializes in fix & flip loans, construction and rental loans
• Multi-family and commercial properties are ok

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

7. Easy Street Capital

East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

• Interest rates range from 6.9% – 10.9%
• Points range from 2-3
• There is a $1495 document fee
• No minimum credit score required
• Down payments of at least 10% required
• Renovation financing ok
• Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

How are Arkansas hard money loans different from other loans?

There are numerous differences between hard money loans in Arkansas compared to traditional mortgages from credit unions and banks. First, these loan products tend to be available for borrowers who may not have a proven track record or a high credit score. They are also available on higher risk properties, like homes that may be in poor condition and require repair. Borrowers may also find these homes do not typically require extensive research and inspections (though some will). That may make them easier to obtain for borrowers.

Another significant difference in these loans is that they can be based on the after repair value of the home rather than on the current sale price of the home. That is important for properties that need a significant amount of repairs or upgrades to make them usable properties again. Most of the time, Arkansas hard money lenders will work with borrowers to help them to get the money they need for those repairs, helping to improve communities while they do so.

Hard money lenders in Arkansas offer these short term loans for a variety of homes and home types. They are often investment properties, which often means that the borrower needs to ensure that the home loan can be closed quickly, often within a few weeks.

By comparison, most traditional mortgage loans can take 60 to 90 days to close, which could be too long for most borrowers who need fast access to funds to obtain a good deal or to purchase a valuable property before someone else does. For those looking for flexible loan terms and options for properties that otherwise cannot be finished, these loans could be a viable solution.

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