8 Best Hard Money Lenders in Massachusetts

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Massachusetts has many attractive qualities, but the Massachusetts real estate market is quite competitive. Home values in the state are higher thanks to the state’s location in New England. The median purchase price of a home in Massachusetts is $617,750, according to the Massachusetts Realtors Association. Those values have grown steadily over the last few years as well, creating significant equity for homeowners. One core factor in that growth was a limitation on the number of homes available for sale as inventory figures remain lower, a dream for homeowners.

Also important is the area’s rental history. According to the U.S. Census Bureau, 76.2% of people own their homes here, and 23.8% lease them. Only about 4.1% of all rentals are unoccupied, which could signal an opportunity for more property demand in some regions. As a diverse state, there are numerous areas where rentals are more common, especially in university communities and the metropolitan areas of Cambridge.

How hard money loans work in Massachusetts

A hard money loan is one that comes from private money lenders or investment companies rather than traditional banks. These loans are often available for the purchase of real estate, including single-family homes, properties with 2 to 4 units, vacation properties, and other investments. It may also be used for commercial real estate development and new construction. Like other types of real estate loans, hard money loans in Massachusetts are a form of asset based lending, secured with the value of the home. If the buyer defaults on making payments on the loan, the lender has the legal premise to recoup their losses by forcing the sale of the home through the foreclosure process.

A hard money lender in Massachusetts may be more lenient in terms of what terms and conditions they will offer. There are a few common traits of these loans. The first is that they are short term loans, often running from 1 to 5 years. They are often used for fix and flip style purchases in which the borrower purchases the real estate, repairs it, and then sells it at a higher price. That is one key benefit of the short term nature of these loans. Investors may benefit from the short term to improve the condition of the property before refinancing into a better loan term. These loans may also serve as a bridge loan until other types of financing is available, such as in major renovations and large-scale development.

Many hard money loans have a higher interest rate than what is commonly associated with residential loans. That rate is due to the higher risk the lender takes when loaning. There are also often higher fees associated with these loans. Yet, for borrowers who have a solid investment opportunity and the ability to turn the loan around within a few months to years, hard money loans can still be very attractive offers. They may also be one of the only options available to investors for purchasing these higher risk loans.

8 Top Massachusetts 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. 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.

4. 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.

5. 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 loan rates 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.

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. 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.

8. 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)
• No 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 FICO 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.

What are the main advantages of hard money loans in Massachusetts?

There are several notable benefits of hard money loans in Massachusetts. The first is their accessibility when other lenders cannot provide these loans. Because these loans have fewer regulatory oversight requirements, borrowers are able to obtain them more readily through these private investors. More so, many lenders will work with borrowers by offering key opportunities such as lower than average credit score requirements or down payments that may be more affordable, depending on the specific lender and the property itself. This flexibility makes these lenders a valuable opportunity for many borrowers.

Another key difference is that Massachusetts hard money lenders typically will approve loans for borrowers based on the after repair value. For example, many fix and flip homes require a significant amount of repair to get them to a solid value. Instead of approving the loan at the current value of the property, which may be very low, lenders may be willing to base the loan on the after repair value.

Also important for many borrowers is the ability to close on the loan quickly. They are often more accessible overall, with fewer rules about inspections and repairs for safety. Lenders recognize that these properties are meant to be repaired. That is one of the key reasons they can work through the loan quicker and close on it sooner. That may help some borrowers get the funds they need faster.

Like other loans, there are requirements for down payments and loan-to-value ratio. However, each lender sets its own requirements. As a result of that, there may be more leniency for a borrower that may be purchasing a home without a lot of money down. That may help to take some pressure off the borrower’s need to use their own private savings to fund the project.

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