What kind of properties do hard money loans finance?

Our clients have used our hard money lending in Minneapolis to finance almost any real estate venture you can imagine. Whether you want to purchase a retail storefront in the Gateway District or a condo in Dinkytown, our lenders will create a custom loan to suit your financial goals.

Residential Properties

If you want to purchase a single family residence, a condo, a duplex, a triplex, or a quadruplex, Source Capital has you covered.  Don’t let your loan fall through at escrow. We’ll lend directly to you so you can buy your new residential property and beat the competition.

Fix and Flip Properties

Don’t let the perfect fixer-upper slip through your fingers. The fix-and-flip market is cutthroat, but with efficient funding from Source Capital, you can snatch up the perfect property before somebody else. Use our immediate funding to secure your property and start remodeling fast.

Commercial Properties

Thinking of renting out a commercial building? You can purchase an office space, retail storefront, industrial complex, storage building, or multifamily unit with one of our hard money loans. No matter how big or small your business venture, we’ll customize a hard money loan to your interests.

Types of Loan Programs

Whether you’re looking to refinance an existing loan or purchase a rental property, Source Capital is your go-to hard money lender in Minneapolis. We offer several types of loan programs for different types of assets and properties, so you can find a loan that’s specifically designed for your next investment.

Refinance

If you want to tap into your home equity to harness your buying power, you can cash out and refinance your existing loan through Source Capital. Once you pay off your existing loan, you can use the remaining funds to invest in commercial or residential property.

Investment purchase

Purchasing rental properties can be a smart investment—especially in desirable areas like Minneapolis. At Source Capital, we’ve got years of experience helping real estate investors secure the funding they need to invest in premium property before it’s off the market.

Commercial property

Are you thinking about investing in a retail storefront or office space? With a commercial property loan from Source Capital, you can get a Minneapolis hard money loan to invest in a wide range of commercial property, including industrial condominiums and retail spaces.

Probate and estate

The probate and estate process can take a while, but we understand you need access to your money to start investing as soon as possible. If you’re set to receive an inheritance, you can take out a Minneapolis hard money loan from Source Capital to start investing ahead of time.

What is the interest rate on a hard money loan in Minneapolis?

The average interest rate charged on a Minneapolis hard money loan is 12.3%. However, at Source Capital, we can get your loan funded—and your real estate venture started—for as low as 8.99%. Our loans also boast 65% LTV, and we make sure to scrap the junk fees other lenders charge, lowering the total cost of your loan.

The average home price in Minneapolis is a little under $315,000. Now is a great time to get in the game and sell while prices last. And, with a low-cost hard money loan from Source Capital, you can snag that ideal property and still have budget leftover for renovations.

The total cost of your hard money loan is determined by the loan amount and duration, interest rate, and origination fee. Our origination fees start at 2% of the total loan amount, but your origination fee may be higher depending on the size and duration of your loan. Our written offer will include all the details about your hard money loan.

How Our Loans Work

When you apply for a hard money loan in Minneapolis, you don’t have to worry as much about your credit score and income. We focus on your assets, which means we’re able to provide hard money loans with favorable and flexible terms regardless of your credit score and income.

Our Minneapolis private money loans are mostly about the ratio of your loan to the property’s value. If you’re taking out a real estate investment loan, the loan amount can’t exceed 65% of the appraised value of the property. If you’re taking out a second loan, the combined total of your secured loans can’t exceed 50% of the value of the property.

Applying for a loan is as simple as giving us a call or filling out our simple online application. Once you fill out the application, you’ll hear back from us within 24 hours. This response will include your origination fee and interest rate. If you accept our offer, your loan will be funded in 7 to 10 days.

If you don’t get approved the first time you apply—or if you have any questions about our loan application—feel free to give us a call with any questions you may have. Our hard money lenders are happy to work with you to find a private loan option that meets your needs.

What happens if you default on a hard money loan in Minneapolis?

Defaulting occurs when a borrower is no longer willing or able to make payments on a debt. In the case of a mortgage or other home loan, defaulting can put the borrower at risk of losing their home and other assets. 

Because hard money loans use hard assets as collateral, defaulting on a hard money loan may give the lender the right to seize your assets and sell them in order to satisfy your outstanding debt. The home the borrower had purchased may also be foreclosed. 

Minneapolis foreclosure laws

If a Minneapolis hard money loan borrower ceases to make payments on their loan, or otherwise violates the terms of the agreement, they may default on the loan. In this case, the lender is able to foreclose on the home, forcing the eviction of the residents. (Note: residents should be notified a few weeks in advance.)

After that, Minnesota law holds that the lender is able to sell the home in order to recuperate funds lost due to missing payments from the borrower. The Minneapolis hard money lender may also be able to levy and sell a defaulting borrower’s assets, as these are offered as collateral in order to secure the loan. 

Do Minneapolis hard money loans show up on credit?

One advantage offered by hard money loans is that they don’t require a credit check to be approved. This saves borrowers time, as credit checks can be a lengthy and time-consuming process, giving you a better chance to secure the property you have your sights set on. It also means that borrowers with low credit can be more easily approved.

In addition to this, Minneapolis private money loans secured with hard assets are unlikely to appear on a credit report. However, they may appear on other documentation, like background checks, or a list of assets and liabilities a borrower holds. 

How to get approved for a hard money loan in Minneapolis

Our loan application process isn’t nearly as time-consuming as other traditional loans. Simply fill out a brief form online and leave the busywork to us. It takes less than 10 minutes to complete our loan application, and you’ll receive our reply within 24 hours. If we approve your loan, we’ll provide you with a written offer disclosing our terms in a clear and easy-to-understand format.

You’ll need the following information to complete your loan application:

• Your first and last name
• Your phone number
• Your email address
• The amount of the loan
• The purpose of the loan

If you accept our offer, we’ll wire your funds directly to you in a matter of days. Once the loan is issued, you make monthly online payments through the mail, phone, or direct deposit. If you have questions or concerns at any time, you’re welcome to contact us and we’ll help you.

Popular Minneapolis Areas

Minneapolis is the largest city in Minnesota, which means there are plenty of real estate investment opportunities. Whether you’re looking for commercial property downtown or a multi-family home in a quiet neighborhood, there are several great areas to invest in.

Linden Hills

Linden Hills is an excellent neighborhood for families because of the relatively low crime rate. If you’re looking for a Minneapolis hard money loan for a rental property purchase, Linden Hills is a nice mix between affordability and safety.

Downtown West

Some people enjoy the peace and quiet of a residential neighborhood like Linden Hills, but Downtown West is the place to be if you’re looking to invest in commercial real estate in the heart of the city. Downtown West is home to tons of businesses, including office spaces, retail storefronts, and industrial complexes. However, there aren’t a lot of residential properties in the Downtown West area.

Ericsson

Ericsson is a nice little neighborhood located slightly southeast of Downtown West, and it’s quickly becoming a hot spot for real estate investments. The average home price in Ericsson has increased in recent years, and easy access to Lake Hiawatha Park and Minnehaha Creek Park are two big reasons why.

Cooper

Some people love neighborhoods that combine residential and commercial properties—and that’s exactly what you get in Cooper. There are tons of residential properties in this neighborhood, but there are also restaurants, stores, and other businesses. This mixture makes Cooper an excellent neighborhood for people who enjoy walking.

Source Capital is your premier lender

Skip the long wait and get funding quickly with a hard money loan from Source Capital. We are a trusted hard money lender loved by clients in California, Arizona, and Minnesota. Partner with us, and you’ll receive expert advice from our private Minneapolis hard money lenders throughout the duration of your project. Our seasoned Minneapolis professionals have decades of experience in the real estate market, and they’d be happy to give you an honest opinion to help you succeed.

Looking for a hard money loan elsewhere in Minnesota? Check out these pages:

• Duluth hard money lenders
• Rochester hard money loans
• Hard money lenders St. Paul

Hundreds of clients have walked away satisfied with our services. We’re honored to be a Better Business Bureau “A+” Rated Accredited Business since 2010, and a 5-star rated lender on Google and Yelp. We’re excited to watch you make your investment dreams a reality, so call us today at 888.235.7191 and together we’ll take the first step toward your real estate goals.