Frequently Asked Questions:

A hard money loan is a short-term real estate investment loan provided by a private lender, like Tall Guy Lending. Hard money loans are backed by the value of the property versus the credit worthiness of the borrower. Hard money loan terms are designed to be shorter, with repayment owed within 3-12 months, depending on the hard money lender.  We’re not a bank, a credit union, or a traditional financial institution that provides conventional loans. We lend our own money.  This makes the lending process friendly, flexible, and fast.  All the decisions are made by the Tall Guy, Keith, in-house. 

There are two basic categories that most loan types fall into – Secured and Unsecured. Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on such item.

One of the main differences between a hard money loan and a traditional loan is how we determine how much money you qualify for. By having your property to secure the loan, we can focus on the value of the property to determine if we should loan and for how much.  Your experience as a real estate investor is also considered.  We focus much less, if at all, on things like your credit scores and previous income history. 

All kinds of (non-owner occupied) properties, both residential and commercial, use hard money lending.  Examples include single and multi-family homes, apartments, commercial buildings, and businesses.  Tall Guy Lending focuses on single family residents of all types as long as they are not homesteaded (i.e. owner-occupied). 

We help investors who are buying residential properties to fix and flip, hold and rent/lease, or properties in great condition that are being bought and sold for quick profits. 

If you need a loan over $500,000 or your project is a business or commercial property, there are other lenders more suited for your needs.  If we can’t meet your needs, we are happy to recommend other lenders. 

Qualifying for a hard money loan is friendly and fast.   Simply complete our online application. A review will be performed, and Keith will contact you within 12-48 hours. 

Once an application is received with all necessary property information, an approval can happen within 1-2 days.  Once all necessary documents are received including Executed Agreement, Title documents, Flood Certification, Appraisal, Repair Estimates, etc. we can Close as quickly as next business day. 

We will not run your credit without your approval first. You may provide us with a credit report or your score through our secure online application process. If your intention is to keep the property as a rental, we will need to get an approval letter from your lender doing your permanent financing or an executed Agreement that you will not be the primary resident of the property. 

We only charge interest on money that is borrowed on every full priced loan. Escrowed funds will only accrue interest once they have been drawn for repairs.  We allow 3 draws over the term of the loan. 

For example, you have an approved loan for a total of $150,000, but we are placing $30,000 in escrow for repairs and modifications.  We will only charge interest for $120,000. The escrowed funds will begin interest charges as they are drawn. 

We don’t use a predetermined LTV of After Repair Value (ARV), but try to be flexible for each investment opportunity.  Our goal is to be flexible for your project, while applying a common sensibility to common sense investments.  Each property has its own profile. For properties in good condition in good locations we may provide as much as 85% LTV.  Properties in poorer condition and/or needing significant repairs or updates we may provide only 60% or pass altogether.  Our average is 70-75%.