8 Best Hard Money Lenders in Kansas

Kansas is a Midwestern state that runs along the Kansas River. Though much of the state was rural and agricultural for quite a long time, today, there’s been a significant amount of growth and development throughout the state. Its largest cities include Kansas City, Wichita and Topeka. About 2.9 million people live in the state. Noted for its incredible national parks, historic sites, and nature as a whole, Kansas is the type of location for those who want a higher quality of life with more affordability than many big cities offer. Its economy is heavily based on energy and taxes, though there is a good amount of agriculture and some tourism here as well.

When it comes to affordability in the real estate market, Kansas is a mid-range state. Like much of the rest of the region, home prices have ticked up in the last few years, but not as quickly as in other areas. Currently, the average sale price of a home in Kansas is $260,366 according to the Kansas Realtors Association. The area has some new development occurring throughout some of the suburban areas in the state. More so, there’s a significant amount of inventory on the market, making it possible for home buyers to find a property that is right for their needs.

The U.S. Census Bureau provides insight into the types of housing located in Kanas. In the state, 69.7% of people own their homes, and 30.3% rent them. That is a strong number of people that rent here, but it is also important to note that the area has 10.8% of its rentals vacant. As the cost of living rises, it is expected to yield the need for a much lower level of rental vacancy in many of the larger areas of the state.

How Kansas hard money loans work

A hard money loan may be an opportunity for investment buyers to obtain a loan that’s more accessible than traditional big bank construction loans. These loans are typically financed through private investment firms or private lenders. They are secured by the value of the property. That means lenders will require the property to have a high enough value to justify the purchase. More so, if the borrower stops making payments as agreed, the Kansas hard money lender may foreclose on the property in an effort to get some of its money back.

Hard money lenders in Kansas set the terms for their loans. This often means the eligibility requirements of their borrowers. Most will require a good or better credit score and a 20% down payment on the loan. However, these lenders may offer some leeway on these requirements if the property is worth the higher price point or if there are other factors that make it an attractive offer. The flexibility of these loans and loan terms is one of the biggest reasons people seek them out.

Kansas hard money loans have higher interest rates, often in the range of 8 to 15 percent of the amount borrowed. However, this helps to offset the higher level of risk the lender is taking on to offer these loans. Those with better credit and larger down payments may not face a higher interest rate. Also notable is that these are short term loans. Most are repaid within 5 years, though terms can be flexible. For a borrower that is hoping to purchase the property, repair and sell it or buy it, improve it, and refinance into lower interest rate loans, hard money loans work very well for this.

8 Top Kansas hard money lenders

If you’re in the market for a real estate investment project in Kansas, consider these hard money lenders that are available for projects in the state.

1. North Oak Investment

North Oak Investment is based in Kansas City and has been around since 1972. Founded by Bernie Ritcher, they provide rehab loans and other real estate investment financing.

We contacted North Oak Investment to learn more about their private lending business and here are some of the highlights:

• No minimum or maximum property values
• No owner occupied properties
• Residential, townhomes and commercial properties are ok
• No minimum credit score, liquid assets or income required
• For rehab loans, max loan amount is $275,000 and they are willing to lend up to 80% after repair value

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. Investor Funding

Investor Funding focuses on loans in the Kansas City Missouri area, although they can lend in wide areas outside of Kansas City. They typically focus on commercial real estate, multi-family and single family homes up to four units.

We contacted Investor Funding to learn more about their private lending business and here are some of the highlights:

• Minimum credit score of 500 required for fix and flip properties
• Minimum credit score of 600 required for rental properties
• Up to 100% financing on fix and flips; up to 90% on rental properties
• Rehab loans typically have terms of 6-12 months
• Commercial bridge loans range from 12-36 months and require a minimum of $100K loan amount

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Fund That Flip

Fund That Flip is a private money lender based in New York that focuses on short term bridge loans for real estate investors looking to flip properties. Founded by Matt Rodak in 2014, Fund That Flip lends in most states.

We contacted Fund That Flip to learn more about their bridge loan program and here is what we found:

• Up to 80% LTC and 70% ARV ratios for your project
• Rates start at 9.99%
• Direct lender with discretionary capital
• Construction projects ok
• 10% down payment required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. Easy Street Capital

East Street Capital is a lending company based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

• Interest rates range from 6.9% – 10.9%
• Points range from 2-3
• There is a $1495 document fee
• No minimum credit score required
• Down payments of at least 10% required
• Renovation financing ok
• Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. EquityMax

EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.

We reached out to EquityMax to learn more about their hard money loans and these are the key highlights that you need to know:

• Single Family Homes
• 1-4 Multi-Unit residential properties
• Condos and Townhomes ok
• Commercial property and Industrial Warehouses OK
• Direct lender that has decision making over financing deals.
• Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
• No prepayment penalties
• No minimum credit score required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

6. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

• Loan amounts up to $5 million for 1-4 unit properties
• Loan amounts up to $20 million for 5+ unit properties
• Single family (1-4 units)
• Multifamily (5-20 units)
• No owner-occupied properties
• Loan terms 12-24 months
• Interest-only payments with rates starting at 8.50%
• Max LTC is 90% of project costs
• Minimum FICO credit score is 660
• Prefer that you have at least two transactions in the past three years

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

7. HouseMax Funding

HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.

We reached out to HouseMax to learn more about their hard money lending program and here is what we found:

• Minimum loan amount is $75,000
• Lends up to 75% of the after-repair value (APV)
• 1-3 points origination charge
• 3 months reserves required
• Direct lender that approves loans internally and funds using their own private capital.
• Lends in urban and suburban communities in all 50 states.
• Goal is to close loans in 10 business days or less.
• Specializes in fix & flip loans, new construction and rental loans
• Multi-family and commercial properties are ok

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

8. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

• Loan amounts from $100,000 up to $5 million
• Investment properties only
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV
• Rates start at 7.25%
• Interest only payments
• Loan terms are 9-24 months
• Foreign nationals are eligible
• No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

Pros and cons of Kansas hard money loans

Kansas hard money lenders offer some lucrative opportunities, but borrowers need to know what to expect throughout the process.

Hard money loans in Kansas are often easier to obtain by borrowers who are unproven or on properties considered a higher risk. These loans may be more accessible than other types of loans. That’s a key plus for investors and flippers who do not want to use their savings to fund an investment project or who cannot obtain a loan through other methods.

Another plus for these loans is that they can be based on the after repair value of the home once it is repaired and updated. That is very beneficial to fix and flip owners who need to borrow funds for the project but expect to renovate the property to improve its value significantly. The key to remember here is that they are short-term loans, which means the process has to happen within a shorter period of time.

The key drawback of Kansas hard money lenders is that they typically charge higher interest rates and fees. While that can be offset some with the shorter loan term, it is also important to note these investment loans are still going to cost a bit more than other opportunities. Buyers of properties like this, then, need to consider if the added cost makes the project viable.

With easier closing terms, many times, lenders can close on these loans within a short amount of time, getting cash in the hands of the borrower sooner. That may help to close on deals faster and allow for ample opportunity to secure those properties before someone else does. The key to remember is that many lenders still have credit score and down payment requirements, though others have very low eligibility requirements, even for fix and flip style properties.

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