8 Best Hard Money Lenders in Tennessee

Tennessee is a landlocked state in the heart of the U.S. This southeastern state is home to large cities such as Memphis, Knoxville, Clarksville, Nashville, and Chattanooga. Overall, about 6.9 million people live here. There are many things Tennessee is known for, including its beautiful terrain and numerous landforms, including the Blue Ridge Mountains. It’s also home to beautiful parks, waterways, and waterfalls.

When it comes to the economy here, there are a lot of industries represented. The area has a growing technology, healthcare, music, and finance industry. It also has a growing tourism sector thanks to the Great Smoky Mountains National Park and the Nashville music scene.

When it comes to overall affordability, Tennessee offers a combination of opportunities. Home values are higher in many areas of the state, especially around Nashville and Memphis. These cities have grown to become some of the largest modern cities in the region thanks to their tech development and focused effort on redevelopment. However, other areas are seeing a much lower home value. Nevertheless, the median sale price of a home in Tennessee is $357,000, according to the Tennessee Realtors Association, indicating just how much demand there is for people to live in the area.

The U.S. Census Bureau states that 67.8 percent of people in the state own their homes, and 32.2 percent rent them. That is about average for the country. Of the area’s rentals, 8.9 percent of them are vacant. That is higher than many other states, but there could be significant demand for real estate in some areas, including in the larger metro areas where apartments, condos, and townhomes are commonly sought after. There could also be opportunities for short term rentals in some areas of the state.

How hard money loans work

For some, using a hard money loan could be the ideal way to fund the purchase of real estate here. A hard money loan is a type of mortgage-like agreement in which the value of the property helps to secure the loan working as collateral. These loans are meant for investors looking to create income properties or engage in fix and flip projects. They may also be used for other types of commercial real estate development.

Property buyers need to know that if they stop making payments according to the terms of the loan, the lender can decide to foreclose on the property with the goal of getting back some of the investment it made into these properties. There is ample risk here. That is why interest rates on these loans tend to be higher than most other loans.

Most hard money lenders in Tennessee offer short term financing options with loans ranging from 1 to 5 years. This provides property buyers with the ability to obtain a loan to purchase and renovate properties to either then sell them or refinance them. Oftentimes, borrowers don’t need long term loans for these types of investments. This also helps to make the higher interest rates a bit more affordable since they remain in these loans for a short time.

Many times, hard money loans in Tennessee will be based on the after-repair value (ARV) of the property rather than the current value based on the condition of the home. Some lenders offer up to 70 percent of the ARV, while others may finance the entire value. This allows the borrower to have access to funds they need to make these often times substantial repairs to real estate. This, too, helps to increase the risk for lenders.

8 Top Tennessee hard money lenders

Some lenders only offer hard money loans to experienced investors, while other programs can lend to those that are pursuing their first real estate investment.

1. BridgeWell Capital 

BridgeWell Capital got started in 2008 and, according to their website, has funded over $500 million in real estate investment deals. They lend throughout the midwest and eastern part of the country and offer the typical suite of private money financing.

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

• Rental loans require 25% down
• Residential and commercial properties ok
• No tax returns or income verification
• 5-year rental loan term
• Fix and flip loans can cover 100% of rehab costs
• Up to 75% ARV
• No interest on undrawn rehab funds
• No pre-payment penalty

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. Tidal Loans

Tidal Loans is based in Houston but provides hard money lending to real estate investors located in many states across the United States. They primarily focused on fix and flip loans, multifamily properties, bridge loans and rental property loans.

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

• Rental property loans available for up to 30-year terms and a cash out of up to 80% LTV.
• Interest only for three or five years
• 85% LTV available on purchase properties
• No experience required
• No tax returns 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. 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 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.

4. 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%
• 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. 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 days or less.
• Specializes in fix & flip loans, 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.

6. 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.

7. 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.

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.

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

There are many types of loans out there, including construction loans and commercial loans. If you’re not sure which route to go, you need to know the big benefits of a hard money loan from a private money lender. A private money loan may help you cover the funding for the purchase price, but as a short term loan that might also come with an origination fee, you need to be clear about all the moving parts.

There are a number of benefits to using Tennessee hard money loans over typical loans. One key reason to do so is that there is less regulatory oversight on these loans, which means that the lender has more flexibility to adjust the terms and conditions to meet your specific needs. For a borrower who may not have a long history or proven credit score, this could provide an opportunity to secure the money they need when other lenders turn them down.

The ARV is another big factor with these loans. Without that higher value, many investors would be unable to obtain the funds they need to purchase these properties. That would limit their ability to repair and update these homes as well. It is important to discuss this with lenders upfront to ensure they have a full understanding of what to expect.

Tennessee hard money lenders are often more lenient when it comes to down payments. Though most will require them, they may not be as high as conventional loans at 20 percent. However, a higher down payment could reduce some risk and encourage lenders to provide these loans to borrowers.

Hard money loans can carry some risk, including due to their much higher interest rates. The key here is to ensure you are investing in property that can be flipped with ease or converted into rental income. These loans are not typically used for traditional house buying for a consumer but rather for rental income properties. Many private lenders work closely with borrowers to ensure their needs are met throughout this process with as much flexibility as allowed within reasonable levels and expectations. Investing in new construction can be overwhelming, but there’s also a lot of work involved in fixing up a property that needs a lot of work.

Because of the risks, you really need to know all the requirements from a lender. Verify underwriting rules and how this will work for a place you’re buying as rental property. With a private money lender, the loan terms are extremely important since they can force the foreclosure of the home if you default on these short-term loans. It’s in your best interest to use these loans if you think you can complete renovations and get this listed on the real estate market quickly.

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