Private Money Hawaii

What Is an Example of a Hard Money Lender? (Real-World Guide)

What is an example of a hard money lender? See real lender types, typical rates/terms, and how Hawaii deals can close in 5–14 days.

What is an example of a hard money lender? A common example is a private lending company (or private investor) that offers short-term, real-estate-secured loans and makes decisions primarily using the property’s value rather than strict bank-style income documentation.

In Hawaii, hard money is often used when closing speed is the smart advantage—especially for investment properties, renovations, and time-sensitive purchases.

Quick Summary

An example of a hard money lender is a private company or investor that provides short-term loans secured by real estate. Hard money loans are asset-based and commonly used by real estate investors when speed is crucial, often closing faster than traditional loans.

TL;DR

• Hard money lenders are typically private companies or private investors
• Loans are secured by real estate collateral
• Underwriting is often asset-based (property value + deal strength)
• Typical costs include interest + points + fees
• Many deals close in about 5–14 business days (sometimes faster when simple)
• Hawaii has unique transaction friction (TMK, permits, island logistics), so local expertise can reduce delays

Real Examples of Hard Money Lenders

Below are the most common “real world” examples investors mean when they ask this question.

1) A Private Lending Company (Asset-Based Real Estate Lender)

This is the most recognizable hard money lender: a business that lends private capital (its own or from investors) secured by real estate.

Typical traits:

• Focus on collateral value and the exit plan (sale or refinance)
• Short terms (often months, not decades)
• Fast process compared with banks (less “committee underwriting”)

This is what most people picture when they say “hard money lender.”

2) A Private Individual Investor

Another very common example is a high-net-worth individual lending personal funds, secured by a mortgage/deed on the property.

Why this still “counts” as hard money:

• It’s private capital
• It’s collateral-driven
• It’s typically short-term and priced higher than bank financing

3) A Real Estate Debt Fund / Mortgage Fund

Some hard money comes from organized funds that raise capital, then lend it out as short-term real estate loans.

Pros:

• Larger capacity for bigger deals
• More standardized process

Cons:

• Can be less flexible on unique Hawaii issues if underwriting is mainland-centric

What Hard Money Loan Terms Usually Look Like (Reality Check)

Because “hard money” isn’t one standardized product, terms vary a lot—but reputable sources consistently describe these patterns:

Common LTV/ARV approach

Many hard money loans cap leverage around ~65%–75% of after-repair value (ARV) on rehab-style deals (varies by lender and risk).

Pricing usually includes interest + points

• Hard money is typically priced with:
• Higher interest than bank loans

Origination points (a percentage of the loan amount)

Note: Exact rate ranges change with markets and deal risk. Your best “accuracy” is to present hard money as priced for speed + risk, not as a single universal rate.