Private Money Hawaii

What Is an Example of a Hard Money Lender? (Fast Hawaii Funding Guide)

What is an example of a hard money lender? A hard money lender is typically a private individual or company that funds real estate deals quickly—often in days instead of weeks—using property value as the main approval factor instead of strict bank guidelines.

In Hawaii’s competitive real estate market, hard money lenders are often the smart choice when speed matters most.

Quick Summary

An example of a hard money lender is a private lending company that provides short-term real estate loans secured by property, focusing on the asset’s value rather than the borrower’s income or credit. In Hawaii, these lenders can fund in as little as 5–10 days for investment properties.

TL;DR

Hard money lenders are private real estate funding sources

Approval is based primarily on property value

Funding can happen in days, not weeks

Common for fix-and-flips, BRRRR deals, and fast closings

In Hawaii, local lenders close faster than mainland institutions

What Does a Hard Money Lender Actually Look Like?

Many people imagine “hard money” as something mysterious. In reality, examples include:

1. A Local Private Lending Company (Like Private Money Hawaii)

A Hawaii-based company that:

• Funds investment properties statewide
• Focuses on property equity and deal strength
• Closes in days instead of 30–45 days
• Offers short-term bridge or fix-and-flip loans

These lenders understand:

• TMK requirements
• Hawaii title processes
• Local zoning issues
• Island-specific market conditions

That local knowledge often means fewer delays and faster underwriting.

2. A Private Individual Investor

Some hard money lenders are:

• High-net-worth individuals
• Real estate investors lending capital
• Small private funds

They lend secured by real estate and expect:

• Higher interest rates than banks
• Short loan terms (6–24 months)
• Strong collateral

These lenders move quickly because they are using private capital—not institutional bureaucracy.

3. A Real Estate Investment Fund

Larger hard money lenders may operate as:

• Private equity funds
• Structured lending companies
• Asset-backed investment groups

These companies:

• Lend nationwide
• Have standardized underwriting
• Often fund larger deals

However, mainland funds may move more slowly than a truly local Hawaii lender who understands island timelines.

Real Hawaii Example Scenario

Let’s say an investor finds a distressed property in Kapolei listed at $850,000.

The property:

• Needs $150,000 in renovations
• Has an after-repair value (ARV) of $1.3M
• Must close in 10 days

A traditional bank:

• Won’t finance due to condition
• Needs full income verification
• Takes 30+ days

A hard money lender:

• Bases approval on ARV
• Reviews the contractor budget
• Verifies exit strategy
• Funds in 7–10 days

That speed can be the difference between:

• Winning the deal
• Or losing it to a cash buyer

Why Hard Money Lenders Close Faster

Hard money lenders move fast because they:

• Focus on collateral, not tax returns
• Skip long bank committee approvals
• Use streamlined underwriting
• Work directly with title
• Understand investor timelines

In Hawaii’s competitive market, speed equals opportunity.

When Does It Make Sense to Use One?

Hard money lenders are commonly used for:

• Fix-and-flip projects
• BRRRR strategies
• Bridge loans
• Auction purchases
• Non-warrantable condos
• Properties with permit issues
• Deals that banks won’t touch

They are designed for investment property financing, not long-term primary residences.