Minnesota Hard Money Lender

We offer first and second trust deeds with no prepayment penalties, no appraisal fees, and can fund in a matter of days.

Source Capital Funding is a Minnesota licensed, direct lender known for speed, reliability, and commitment to it’s clients. With over 40 years experience, we’re a well backed private lender that has funded over $550M in private loans since 2007.

Fast Decisions

As a direct lender, our approval process is built for speed as we underwrite and make all decisions in-house. From the time we are initially contacted to the time the loan is funded, our streamlined process allows us to fund loans in a matter of days.

Proven Track Record

Since 2007 we have successfully funded over $550M in loans secured by real estate. We have earned our reputation as a lender known for speed, reliability, and fairness.
Our team has the experience and ability to provide quick, direct answers to help expedite our client’s requests.

Well Capitalized

We’re a direct lender with immediate access to capital to lend. Because our company is backed by well established, accredited investors, there is always capital available to fund our loans. We are able to close quickly and with full transparency.

Loan Terms

INTEREST RATES	8.99% – 11.99% – First Position 11.99% -13.99% – Second Position	LOCATION	Arizona, California, Colorado, Minnesota and Texas only
LOAN AMOUNTS	$100,000 – $5,000,000	TYPES OF LOANS	Acquisition, Refinance and Cash-Out
LOAN DURATION	12-24 months	LIEN POSITION	First and Second Trust Deeds Only
ORIGINATION FEE	2.0-4.0% of loan amount, depending on loan size and length of term	PROPERTY TYPES	Owner and Non-Owner Occupied Residential. Multifamily, Commercial, Industrial, Office, Retail, Mixed Use
LOAN TO VALUE	Up to 65% LTV in first position Up to 50% CLTV in second position	APPRAISAL FEE	None
CLOSING TIMEFRAME	10 business days or less	PREPAYMENT PENALTY	None

There are no minimum credit scores, employment requirements or financial minimums to qualify for a loan.

*All loans are secured by real estate for business purposes only

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Hard Money Lender Minnesota

When it comes to quality of life, there’s simply no beating the bliss of Minnesota. Ranking among the top five happiest states in the U.S., there’s a good reason why so many are settling down in The North Star State. And with a growing population of people looking to set down roots in Minnesota, there’s no better time to chase your real estate business dream.

With the help of professional investors at Source Capital, you can gain access to the funding you need to make commercial or residential real estate enterprises a lucrative reality. As Minnesota’s finest hard money lender and with a precise understanding of the fast pace of the real estate industry, Source Capital’s primed and perfected hard money loan application and approval structure is a leading option for real estate entrepreneurs.

Since 2007, we’ve secured over $400 million in loans— funding hundreds of real estate projects from Minneapolis to Duluth, to Rochester and beyond. Count on Source Capital as your go-to financier for your next Minnesota real estate venture.

Client Testimonials

“We were very pleased with the service we received from Source Capital. Communication was clear and responsive, funding was quick, and terms were as agreed and proposed.”

Brian OverstreetPresident, Advera Health Analytics

“Sacha and his team were on point from our first call to funding. They were professional and easy to work with. We will definitely be using them for our future transactions”.

Mark O’ToolePresident, Pacific Coast Home Mortgage & Real Estate Inc.

“The staff at Source Capital has helped me create new income streams. They are consistent, direct and deliver every time.”

Michael KornAgent, Keller Williams Realty

“As a lender myself, working with Source Capital shows that there are still a lot of good people in our industry, and we will definitely be in connection to do future business together. Job well done.”

Anthony TrujilloMortgage Broker, Paramount Partners

“I have never dealt with a hard money lender before but I can tell you my experience with Source Capital was very positive. I highly recommend”

Courtney RothClient

“Recently completed another flawless transaction with Source Capital. Why would anyone want to go anywhere else? They’re the best.”

Marianne BordognaAgent, Keller Williams Realty

“The team at Source Capital Funding was fantastic. Their professionalism, speed and solid loan terms is why I will be coming back to close more business with them.”

Sergio AbbudSenior Loan Officer, Better Rate Mortgage

“The team at Source are consummate professionals who work efficiently and effectively. Simply stated- truly exemplary and professional people”

Paul ElamOwner, San Diego’s Real Estate

“Source Capital has been an absolute pleasure to work with throughout. These guys are on top of their game.”

Tyler HansonAssociate Broker, Cushman & Wakefield

“In all my years, I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!”

Greg ShieldsOwner, GSI Appraisals

“They were very responsive and extremely helpful and would certainly use them again. I highly recommend their services.”

Alvin FuchsAgent, Keller Williams Realty

“Highly recommend Source Capital Funding if you need money fast and you value efficiency. I will go back to them again if I need funding in the future. “

Kendall HeathClient

“I have always had a highly professional and honest experience with everyone on their team and would recommend to anyone looking for financing.”

Andrew BellahOwner, The Bellah Group

“They are always so patient, helpful, and professional. and have helped me so much! This can be such a stressful process, but they make it all so easy.”

Lauren MarcusClient

“Smooth and fast transaction as the loan was funded in 8 days. They are a pleasure to work with – Strongly Recommended.”

Borna EftekariAgent, Farmers Insurance

Minnesota Hard Money Lender FAQs

How do hard money investment loans work in Minnesota?

Real estate investing can be lucrative, but it can also be difficult to secure the funding you need to invest in residential and commercial real estate.

At Source Capital, we offer hard money loans in Minnesota to help investors like you access the funding you need for your next real estate venture with ease. Using property as collateral, our hard money loans in Minnesota offer a quick and easy approval process.

With years of experience offering hard money loans in California, Colorado, and several other states, we help take the stress out of real estate investing.

What type of loans do you do?

All our loans are secured by first and second deeds of trust (mortgages) on real estate only in AZ, CA, CO, MN and TX for business purposes only from $100K up to $5M. Examples of business purpose loans are loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

We do not offer loans for:

Ground-up construction projects
Personal use (pay bills, improve primary residence, medical collections, etc.)
Primary residence purchases
Land purchases or refinances
Special use/single purpose properties (church, car wash, dry cleaner, gas station,, etc.)
Hospitality properties (restaurant, hotel, motel, etc.)
After repair value (ARV) and/or provide funds for the purchase AND rehab costs
Rural areas of the states we lend in
Borrowers with no real estate as collateral (unsecured loans)

We understand every scenario is different. Contact a decision maker directly at 888.334.6636 to see if we can help with your request for financing.

What are the typical terms of a hard money loan in Minnesota?

The terms of hard money loans in Minnesota may vary by lender, but there are some standard terms you can expect. Generally speaking, hard money loans last anywhere from 3 to 60 months, allowing you to borrow up to 75% of the total value of your property.

Interest rates are usually in the 10%-15% range, but that may depend on the collateral you provide and your individual situation.

At Source Capital, we’re proud to offer some of the lowest rates available, starting at just 8.99%. All our loans are amortized over 30 years and due in 1 or 2 years with a balloon payment due at term. We have no prepayment penalties so the loan can be repaid at any time with no additional interest payments owed. We also can fund typically within 7-10 days.

How do I find a reputable Minnesota hard money lender?

Sorting through all the hard money lenders in Minnesota can be a difficult task, but you can find reputable lenders by looking at online reviews, loan terms, and licensing. Choosing an experienced hard money lender is also a smart move.

At Source Capital, we work diligently with you to make sure you can access hard money loans in Colorado, Minnesota, and numerous other states. We have years of experience and offer competitive loan terms, helping you get the money you need for your next real estate investment.

What are the benefits of working with Minnesota hard money lenders?

Whether you’re taking out hard money loans in Texas or Minnesota, there are a number of benefits. Here’s what makes Source Capital a top Minnesota hard money lender:

Speed: We usually send you a written offer within 24 hours of your application, and you receive your money in as little as 7 days after you accept.
Flexibility: We’re flexible about credit score and income requirements, making it easier to get approved for a hard money loan.
Security: Your hard money loan is secured by your equity in the property you use as collateral.
Opportunity for investments: Since you get access to your money in 7 to 10 days, you don’t have to worry about missing out on lucrative investment opportunities.

How can I get approved for a Minnesota hard money loan?

When you work with Source Capital, our equity-based approval process makes getting a loan a breeze—even for those with low credit, previous bankruptcies, or past foreclosures. Hard money loans may be the solution If you’re looking to invest in real estate with a less-than-perfect financial history.

To get approved for a hard money loan in Minnesota, simply follow these steps:

Fill out our hard money loan application
Provide full details about the property and your loan request
Submit your application— within 24 hours, we will get back to you with a written offer
Upon acceptance, you will receive your funding between 7 and 10 days
Make monthly repayments via mail, phone, or direct deposit once your loan is issued

What properties can Minnesota hard money lenders finance?

From hard money loans in Arizona to Minnesota hard money loans, our loans can be used for a variety of both commercial and residential properties.

Our team of expert lenders can help provide the funds you need to purchase or refinance a family home or condominium. For investor clients, we can also provide loans to help you quickly fund rehabs, remodels, or buy-and-holds.

When it comes to commercial hard money loans in Minnesota, we offer funding for up to $5,000,000 for a wide variety of property types, including:

Retail spaces, including strip malls, urban retail real estate, and regional malls
Office space, including medical, business, and executive suites
Multi-family housing, including apartment buildings, condominium complexes, and planned communities

Industrial spaces, including warehouses, manufacturing plants, and distribution centers

Can I get a hard money loan in Minnesota with poor credit?

It depends on the lender and product you are qualified for. With Source Capital, you can get a hard money loan in Minnesota with poor credit as we are focused on the asset being pledged on the collateral first and foremost. At Source Capital, we understand that “life happens” and have worked with all borrowers and scenarios from bankruptcy and probate to those with poor credit or self-employed.

As an asset-based lender, we’re more focused on your property’s potential value rather than individual borrower credit history. Whether you’re looking for a residential property in Bloomington, commercial property in Maple Grove, or a multi-family unit in Mankato, our Minnesota hard money lenders can help you bring your vision to fruition.

How long does the loan process take?

Because we are a direct hard money lender, we typically can approve loans in 24 hours and fund loans within 7-10 days from initial contact. Our automated hard money loan process and direct access to capital allows for quick decisions and funding with minimal paperwork.

Can I qualify if I have poor financials?

Absolutely. As our main focus is centered on the property being used as collateral for the loan, financial strength is not a requirement to obtain a loan with us. We understand there is a reason client’s come to us and do our best to provide a loan option that will work for you, whatever the situation may be.

Do you do primary residence purchases?

We do not provide financing for primary residence purchases as we fund loans for business purposes only. Business purpose loans are defined as loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

What areas in Minnesota do you lend in?

We lend throughout the state but mainly focus on more urban than rural areas. Mainly Minneapolis/St. Paul, Rochester, Duluth, Bloomington, and their respective outlying areas.