7 Best Hard Money Lenders in Minnesota


Hard money lenders in Minnesota are ideal for real estate investors and flippers seeking real estate loans like new construction loans, bridge loans, etc.

Key Terms

  • Hard money loans are private money loans that provide qualified borrowers with access to funds to use for investment properties, including fix and flip homes, rental properties, and other types of higher risk property types.
  • Hard money lenders in Minnesota are typically private money lenders like individual investors or financial groups that come together to offer competitive loan options.
  • For those borrowers looking for short-term loans for their next project, hard money loans tend to be the ideal route, especially for their access.

A Midwestern state, Minnesota is the 12th largest state in size. It’s home to beautiful prairies, deep, dense forests, and ample farmland, but much more than that as well. The state’s largest metro area is the Saint Paul and Minneapolis area, though other large cities exist throughout the state, such as Duluth, Bloomington, and Maple Grove. Many would say the state’s most impressive attraction is the natural outdoors here, which is home to over 14,000 bodies of fresh water and numerous parks. Mining, forestry, agriculture, and recreation are some of the largest industries in the state. As the home to 5.7 million people, Minnesota is a thriving and diverse region of the country with much to offer those calling it home.

Minnesota has a number of higher-end communities and more affluent areas, but overall tend to be an affordable place to live. The real estate market in Minnesota is equally competitive, with lots of opportunities for purchasing quality property with land for a lower price than could be found in some other states. Still, the cost of a home here is higher than in many Midwestern states. The median sale price for a home in Minnesota is $325,000 according to the Minnesota Realtors Association. That represents a significant but not sharp increase in home values year over year.

For those considering rental property here, there is a market for it. The U.S. Census Bureau states that 75.3 percent of people own their home in Minnesota, and 24.7 rent. Keep in mind that there are a number of vacancies in the rental market here, about 8 percent. That is a bit higher than most other areas, which could mean limited options for new rental properties exist in some areas. The largest rental markets are the Twin Cities, as well as several of the urban communities throughout that region.

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How hard money loans work in Minnesota

For some people considering an investment in real estate in Minnesota, the use of a hard money loan may be ideal. A hard money loan is a type of real estate-based loan offered by private lenders and groups of private investors. These loans are backed by the asset. That means a home buyer who defaults on the home will likely lose the asset through the foreclosure process. Hard money lenders do not want to see that happen, which is why they are careful about who they lend to and the types of properties they will invest in overall.

Hard money loans in Minnesota are often used to purchase higher risk investment property. This may include providing loans to those who purchase fix and flip homes. It may also be helpful for those who need a bridge loan for rental properties or other properties until a new loan can be obtained. Hard money loans are also typically used for commercial real estate development. These are types of investments considered hard to finance through a traditional lenders and mortgage brokers, making these lenders an attractive option overall.

Because of the risk they carry, most hard money loans in Minnesota have a higher interest rate than could be expected from traditional loans. There could be higher fees as well. Lenders typically set their own terms and conditions, which means that factors such as credit scores, down payment requirements, and other conditions are dependent on the requirements set by those lenders. That is often significantly different from what a traditional mortgage will require.

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7 Top Minnesota hard money lenders

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

1. Source Capital

Founded by Sacha Ferrandi, Source Capital lends in Texas, California, Arizona and Minnesota to real estate investors looking to find private money financing for fix and flip, residential or commercial properties.

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

  • Loan to value up to 70%
  • Terms up to 36 months
  • Origination fees start at 1.75%
  • No 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.

2. Pine Financial Group

Pine Financial Group is focused on lending in the Twin Cities area of Minnesota but will look at other markets such as Saint Cloud and Rochester. They are a direct investor with funds raised from individual investors.

We contacted Pine Financial Group to learn more about their private lending business and here are some of the highlights:

  • 90% acquisition loans available
  • Rehab loans available to cover 100% of purchase and repairs
  • IRA loans available
  • 45-day bridge loans and commercial loans 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.

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. 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 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.

5. 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.

6. 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.

7. 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.

What are the main advantages of a Minnesota hard money loan?

There are numerous advantages to obtaining a Minnesota hard money loan over a traditional bank loan. First, many times the property being purchased is not one that a traditional bank will lend for, which makes hard money loans the only option. These lenders typically take on a higher level of risk when lending, which is why interest rates are higher.

Another core benefit Minnesota hard money lenders offer is more competitive offers based on home value. Unlike traditional loans, these have a much higher level of flexibility. Lenders base the loan on the after repair value of the property, which is beneficial in properties that need a significant amount of repair. These loans may be more accessible because the value of the home, after repair, could be significantly higher.

Another key advantage of hard money loans in Minnesota is that they provide a faster closing process. Lenders may not require as much due diligence, or there may be limitations on the number of inspections or pre-sale repairs needed by property owners. This allows for a faster close, which allows investors to obtain the property faster. Many times, these loans can close in under 30 days.

Minnesota hard money lenders set the terms for borrowing. While credit scores of over 650 are often necessary, there is some limitation and leniency in that. More so, some lenders do not require a 20 percent down payment, like what is typically required in a traditional mortgage loan. The loan to value ratio could be more flexible depending on the overall property and the potential it offers. The benefit here is that these lenders are flexible and oftentimes will work closely with borrowers to find the best deal available for the loan. Even though they cost more, these loans tend to be a must-have investment tool for these harder to finance properties.

If you’re looking to explore hard money in other states, check out our national overview of hard money lenders as a starting point in your search.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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