8 Best Hard Money Lenders in Kentucky

Bordered by the Ohio River to the north, Kentucky is home to vibrant cities like Frankfort, Lexington, and Louisville, as well as the awe-inspiring Mammoth Cave National Park, the world’s longest cave system. Known as the Bluegrass State, it uniquely combines natural beauty with bourbon, horseracing, and moonshine, supported by strong schools and a thriving economy fueled by tourism and the horse industry.

For those who plan to buy in the real estate market in Kentucky, it’s a good idea to get to know the market. Like in many regions of the U.S., home prices here have risen significantly over the last decade, but Kentucky remains a bit more competitive and affordable. The median purchase price of a home in Kentucky is $221,000, according to the Kentucky Realtors Association, which is lower than many other states. It is still possible to buy an affordable home here, especially in some of the more rural areas that are rapidly expanding.

About 68.9% of people in Kentucky own their homes, according to data from the U.S. Census Bureau. That means about 31.1% rent their homes. That is a rather high percentage of residential property rentals, which means there could be a good opportunity here for some individuals looking to purchase and lease real estate. More so, just 3.8% of rentals are unoccupied right now, which means investors and flippers could find potential is available in many areas of the region.

How hard money loans work in Kentucky

Hard money loans could help investors purchase real estate in Kentucky. These are secured loans, which means the value of the home helps to support the loan. Hard money lenders are able to pursue foreclose activity if the borrower stops making payments on these loans. As secured property loans, hard money loans tend to be available to borrowers on homes with equity or on valuable properties. Hard money lenders in Kentucky are typically private individuals or groups of investors who offer loans to those who may not otherwise qualify.

There are various ways hard money loans in Kentucky can be used. One of the most common is through a fix and flip strategy in which the borrower purchases a home to repair and renovate before re-selling it. Because these are short term loans with terms of 1 to 5 years, they are ideal for the fix and flip investor. It’s also possible to use these funds as bridge loans until a new, lower costing loan can be obtained and for rental real estate investment. They are flexible enough to be used for various types of commercial real estate development. This makes them attractive to investors who may want to avoid putting more of their personal savings into the purchase of investment property.

Hard money loans require monthly payments, and most lenders have eligibility requirements that must be followed. With hard money loans, it is likely the interest rate will be slightly higher than what is typically found on a commercial loan or construction loan today, but those loans are usually not accessible for these types of properties. Hard money lenders are often willing to be more flexible with terms and conditions to ensure the borrower, who meets their qualifications and eligibility, has the opportunity to purchase the property.

8 Top Kentucky hard money lenders

If you’re in the market for a real estate investment project in Kentucky, consider these hard money lenders that are available for projects in the state.

1. Lima One Capital

Lima One Capital is based in Greenville, South Carolina and founded by former Marines. They lend throughout the United States and offer typical private money lending products like Fix and Flip, bridge loans, construction loans, rental loans and multi-family loans.

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

• For Fix and Flip loans, up to 90% LTC and 70% LTV for loans from $75K to $3 million
• 12, 19 and 24-month terms available
• Interest only loans
• For Fix and Rent loans, can finance single properties or portfolio loans with 5, 10, 30-year term options available
• For rental property, can fund loans from $75K to $1 million up to 80% LTV on purchases and refinances.

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. 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.

4. 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 from $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.

5. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

• Loan amounts up to $5 million for 1-4 unit properties
• Loan amounts up to $20 million for 5+ unit properties
• Single family (1-4 units)
• Multifamily (5-20 units)
• Non-owner-occupied properties
• Loan terms 12-24 months
• Interest-only payments with rates starting at 8.50%
• Max LTC is 90% of project costs
• Minimum credit score is 660
• Prefer that you have at least two transactions in the past three years

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. 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
• 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.

7. 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 program 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.

8. 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
• 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.

What are the main advantages of using a Kentucky hard money lender?

Kentucky hard money loans can be very helpful to investors who do not want to use their personal savings to fund an investment project and who may be unable to obtain a traditional loan for the purchase of this type of real estate. The biggest advantage is that these loans tend to be more readily available in difficult situations. Yet, there are other advantages, too.

One of the key benefits is that Kentucky hard money lenders typically will allow the after repair value of the property to be used to determine the value of the home. Most real estate loans are based on the current value of the home, with lenders not willing or able to offer loans higher than the appraised value. However, hard money lenders may be able to do this in situations where the home will be a higher value once the renovations are complete.

Also important is that there are fewer regulatory limitations and more opportunities to create customized loan terms and conditions. This allows the borrower to work closely with the lender to find a loan that works for them. With fewer inspections and less overall time spent on appraisals, most of these loans can close quickly, often in a fraction of the time, it takes a traditional loan to close in.

Though interest rates are higher with these loans, the loan terms are shorter. And even with the fees and higher interest, these loans can be well worth it for investors looking for fast money to help them to purchase an investment property that they are confident can be profitable in some way. A good credit score and a down payment may still be required to obtain these funds, but borrowers tend to be more flexible in these areas when lending as well.

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