3 Best Hard Money Lenders in North Dakota


Hard money lenders in North Dakota are private money lenders that offer financial tools for hard to finance properties

Key Terms

  • A hard money loan provides borrowers with access to funding to buy investment properties, such as fix and flip residential properties, and rental income multifamily or single-family property types.
  • North Dakota hard money lenders typically offer competitive mortgage loan rates and terms lasting 1 to 5 years.
  • Though the costs are higher than what you would get from traditional mortgage lenders, for many investors, the access to after repair value loans tends to be the best feature of these loans.

North Dakota is an Upper Midwest state that sits on the border of Canada. It is It’s not the largest state in population, with under 775,0000 people calling it home, but it is a large state in size, spanning more than 70,000 square miles. North Dakota is significantly remote and offers some of the most beautiful terrains. It also has a strong history of Native American tribal communities. Much of the state is rural, but there are some larger cities here, including Fargo, Bismarck, and Grand Forks. Its largest industries include agriculture, energy, and tourism, though financial and health care industries are growing here, too.

One of the key benefits of buying real estate in North Dakota is that it is more affordable. Properties are larger with more land as well, making the dollar here go further. The average sale price of a home in is $275,000 according to the Valley News Live, though you will find properties that are much more affordable in some regions of the state. Other areas are more affluent, especially around Fargo, where more traditional neighborhoods exist. Like many other areas of the country, home values have grown in North Dakota, just at a more steady and even pace. That’s thanks to low interest rates and solid access to homes.

One of the most interesting components of the real estate market in North Dakota is that it has such as high level of rental property. The U.S. Census Bureau states that 59.7 percent of people here own their homes, and 40.3 percent rent them. That is significantly higher than most other states, making the region highly dependent on rental property. Only 4.8 percent of rentals are vacant as well. This could indicate there is some demand for new rental income properties in the state.

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How hard money loans work in North Dakota

A hard money loan is a type of real estate backed loan. The value of this loan is backed by the property itself, like in a traditional mortgage. As such, if the borrower defaults on the loan, such as not making payments on time as agreed, the lender can force the sale of the home through the mortgage foreclosure process. Hard money lenders in North Dakota don’t want to do this, and that is why they tend to have a significant number of stipulations on these loans and who can borrow them. Yet, for many, these are the best loans available.

That is because many hard money loans in North Dakota are on high risk properties. That may include fix and flip homes, rental income properties, and commercial real estate purchases. They also may work as bridge loans for some investors. In many ways, these properties typically carry a higher rate of default, which is why most hard money lenders charge a significantly higher interest rate on these flip loans than what is found on a traditional mortgage from a big bank or credit union.

It’s also notable that these are short term loans. Most have a loan term from 1 to 5 years. For fix and flip properties, it is expected that the borrower will purchase the property, make repairs, and then sell it, paying off the loan in full within a few months. With rental income properties, such as single family homes, multifamily homes, or other types of dwellings, the lender expects the borrower to purchase the real estate, upgrade it, and then refinance into a better loan term that’s more affordable overall. These are not meant to be loans kept in place for years.

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3 Top North Dakota 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. 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 (loan-to-value)
  • 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.

2. 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.

3. 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 North Dakota hard money loan?

North Dakota hard money loans be a solid investment opportunity. They provide borrowers with access to the funds they need to purchase high risk properties when other lenders are unable to offer that type of funding. More so, there are fewer steps in obtaining those loans since lenders are able to finance them without having to meet federal regulations and requirements. To be clear, lenders still set terms and conditions, and they have very specific eligibility requirements in most situations. Yet, they may be more lenient with the types of properties selected.

One of the best benefits of North Dakota hard money lenders is that they typically provide loans based on the after repair value of the property. That is different from traditional lenders who use the current value of the property. Because many of these properties require a significant amount of upgrade and renovation, the lender will approve loans that otherwise could not be approved by traditional lenders. That could provide better benefits to borrowers.

Another advantage of these loans is that they allow borrowers to obtain loans faster than what is typically found in banks. That means a faster closing timeframe in most cases. With fewer inspections and oversight rules and often a faster underwriting process, borrowers can secure the money they need to buy investment property sooner. That may help to close deals faster.

Down payments are still a requirement, as is a good credit score. However, there may be more flexibility in these areas depending on the lender. Because hard money lenders in North Dakota are able to set their own conditions and requirements, many borrowers can secure loans even if they traditionally would not qualify for those loans through other lenders.

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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