6 Best Hard Money Lenders in Mississippi

Mississippi is a southern state with much to offer. Its name comes from its border with the Mississippi River. The state has the lowest per capita income in the U.S. in full, making it one of the most affordable places to live. It isn’t the largest state but is home to around 2.9 million people. The largest cities there include Jackson, the capital, as well as Biloxi, Tupelo, Gulfport, and Olive Branch. With a hot, humid year-round climate and access to the Gulf Coast, Mississippi is easily recognized for its diverse ecosystem, including being the home to numerous parks. Its economy is just as diverse with the main industries present here, including agriculture, forestry, utilities, manufacturing, and health services. It’s a top producer of items such as sweet potatoes and farm-raised catfish. For those thinking about living here, it’s a beautiful, affordable place to call home.

That’s reflected in home values here in the real estate market. Though the state has seen some increase in home values over the last few years, properties remain some of the most affordable in the country. That’s due in part to the lower income here but also because of the less dense population. The average purchase price of a home in Mississippi is $140,642, much lower than the national average. New home construction is occurring in some areas but is limited in others. There are also many densely populated urban cities and neighborhoods that are reliant on low priced homes.

The U.S. Census Bureau shows that 69.7 percent of people in Mississippi own their homes, and 30.3 percent rent them. Of the rentals in the region, about 6.9 percent are vacant. For those who are considering the investment in rental property, Mississippi can be a solid choice depending on location and economic conditions.

How hard money loans work

A hard money loan is one way to finance more difficult to finance property types. Without a doubt, some types of real estate carry more risk, including fix and flip homes, rental income properties, and commercial real estate development. Hard money lenders in Mississippi typically help to provide financing for borrowers seeking to invest in these types of properties by providing easier access to real estate loans. There is risk, which is why many of these loans have a higher interest rate than others. Yet, for those who wish to invest and do not have access to big bank loans, this works well.

Hard money loans are asset based private money loans. That means the property itself is the security for the loan. The borrower and lender agree to key terms for the loan. If the borrower fails to make payment on time and to the terms agreed upon, the lender will force the foreclosure of the home to recoup some of its investment in that property. Lenders do not want to do this because it’s expensive, but it is one way to reduce some of the risks associated with owning these properties.

Hard money loans are short-term loans, often with terms ranging from 1 to 5 years. They are ideal rental loans for fix & flip properties because they count on the property being sold within that term. They also work for rental investment properties where the borrower plans to renovate and upscale them to secure a new loan with a lower interest rate. Overall, these loans tend to be ideal for projects where the lender can see the value in them and recognize that the property will sell or do well over time.

6 Top Mississippi hard money lenders

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

1. New Silver

New Silver started in 2019 by Kirill Bensenoff and Alex Shvayetsky. They offer a variety of private money lending products like fix and flip, rental, ground up and personal loans.

We contacted New Silver Lending to learn more about their private lending business and here are some of the highlights:

• Origination fee from 1.875%
• Loan to cost up to 90%
• 100% construction financing available
• Loan to ARV up to 80%
• Terms are typically 24 months
• Loan amounts are from $100,000 to $5 million
• Minimum FICO score is 650
• No hard credit pull 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.

2. EquityMax

EquityMax is a private money lender 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 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.

3. Easy Street Capital

East Street Capital is 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%
• Origination fees 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.

4. Fund That Flip

Fund That Flip is a hard 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.

5. 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.

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 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.

What are the main advantages of a Mississippi hard money loan?

There are a number of advantages to using Mississippi hard money loans. The main benefit is that they are accessible when other types of loans from banks and credit unions are not. Those lenders typically have numerous regulatory rules, inspections, and requirements that these properties will not pass during the lending process. Hard money lenders don’t have those rules and offer more flexibility, making it possible for borrowers to secure the money they need to buy these properties without having to rely on their savings.

Another key benefit is that many Mississippi hard money lenders use the after repair value of the property to determine how much they can offer to borrowers or if they can finance the property. Unlike a traditional bank that bases the value of the loan on no more than the current appraised value of the home, hard money lenders make it possible to obtain the funds needed to buy and repair these homes, a key advantage for many borrowers.

Another opportunity comes in the flexibility in who they lend to. Most lenders have requirements and eligibility rules, but they may be more lenient and better able to work with borrowers who may not have all of the best features to offer. Some require a down payment, but it may not be as high as the 20 percent down that many conventional lenders require. They often have credit score requirements but may not have as high of a requirement.

The flexibility of being able to change up the loan to fit a project and work closely with borrowers is one of the best reasons to work with hard money lenders in Mississippi. For borrowers who recognize the value in purchasing real estate and flipping it, this can prove to be one of the best investment opportunities available to allow for that to occur.

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