Hard Money
Hard Money refers to privately placed loans rather than institutional loans that lenders typically will not fund. Lenders can take 90 days or more and generally have more stringent underwriting guidelines for both the type of property used as collateral and the credit worthiness of the Borrower. Hard money commercial loans are designed to be available for “Special” situations where banks and conventional lenders cannot or will not take on the risk to fund. The most compelling reasons for using hard money lending are:

 1.        less time involved – need to close FAST.

2.        less qualifying and underwriting to close your transactions.

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Asset Based
Assest Based is a straightforward concept – matching real estate assets to borrowing needs. Unlike traditional bank debt that relies heavily on balance sheet ratios and cash flow projections as loan criteria, asset based lending uses the actual asset as its primary focus for lending. It relies most heavily on the real estate asset, not the credit-worthiness of the Borrower

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Mezzanine
Mezzanine closes the gap between debt and equity. There are many ways to structure a mezzanine loan but the common element is the loan holds a “mezzanine position” between the first mortgage and the equity. There are two situations where mezzanine lending is particularly attractive:

        1.        Recapture of equity in a stabilized property

        2.        Maximization of a loan proceeds by borrowing additional capital above the first mortgage loan in new acquisition.

Loan Amount	$100,000 to $20M
Equity Contribution	Up to 80% of the equity provided by lender
Term	1 – 3 years
Rates	9% – 18%
Payment	To be negotiated
Use of Proceeds	Development and investment projects
Collateral	Equity in the transaction