What is Hard Money?

Even if you are incredibly new to real estate investment, we bet you’ve heard the term “hard money.” Yet odds are, you know very little about how hard money actually works.

That’s why we’ve put together this quick introduction to hard money loans. Read on to better understand these loan types.

Who lends hard money?

Hard money loan lenders are typically private individuals or small groups, such as AgAmerica Lending. Here at AgAmerica Lending, we lend money based on the value of the property; NOT solely on your credit score, assets, or income.

Who borrows hard money?

Developers and real estate investors typically turn to hard money loans to finance a project or property quickly. Investors can borrow up to 50% the purchase price of the property, though this usually must be backed up with collateral. So, if you’d like to purchase development property or finance agricultural land, and you can’t do so quickly (or at all) with conventional financing, a hard money loan might be the best approach for you.

As mentioned, these loans can be acquired readily – sometimes within a matter of days (7-14 days) – as opposed to loans from traditional lenders, which will extend the process of securing an ag loan or real estate loan for up to a month or even longer.

What’s more, you are guaranteed a professional, individualized experience when dealing with an ag lending company like AgAmerica. Here, investors work directly with one of our knowledgeable lenders, rather than a big processing team, thus bypassing the entire loan committee or underwriting processes common when dealing with a conventional lender.

Hard money loans are usually best suited for short-term investments – flips, rehabs, or initial purchases. Borrowers commonly use hard money to function as a bridge loan – a short-term loan intended to hold the investor over until the property is ready to be sold, developed, or until traditional funding can be secured.

The beauty of these loans is that they are quick and completely based on collateral – not personal financial status. This makes these loans very attractive in the eyes of investors.

Need quick financing for a new property? Financing agricultural land? Contact AgAmerica Lending to discuss whether a hard money loan is your best option to kick-start your project or operation. Info@AgAmerica.com or 844-516-8176

Read More

5 Advantages of Bridge Loans for Investors

Bridge financing, as the name suggests, serves as a “bridge” to another transaction. In our case, these loans have assisted real estate projects and have also allowed borrowers to pay off loans or take advantage of new opportunities quickly.

Bridge loan financing is a smart alternative for borrowers when traditional lenders are moving too slow or are too rigid. Hard money lenders, like AgAmerica Lending, offer speed, a professional service, and convenient short-term financing, helping investors to take advantage of great opportunities that do not fit easily into the tight structure of institutional lending. Regardless of if you’re a seasoned borrower or a newbie, AgAmerica is here to assist you.

Through our Transitional Lending program we offer these non-conventional asset-based loans, often called hard money loans, which are based on collateral and can be beneficial for a variety of purposes.

5 Advantages of Bridge Loans:

  1. You do not miss out on an opportunity when a traditional lender (i.e. a bank) cannot close the deal in a timely fashion. Bridge loans are fast. When time is of the essence, a AgAmerica Lending’s bridge loan can make all the difference in securing an opportunity.
  2. The bridge loan holds you over until the property is sold. If you need to sell your investment property now, but know it may take a few months on the market to sell, a bridge loan is a great option.
  3. You can buy out an investment partner. Paying off a partner who is no longer interested in the real estate investment/partnership can have long-term benefits.
  4. Flexible payback may be an option. Proving adequate income to repay the debt is one of the requirements a borrower must meet. However, there is an option of utilizing an interest reserve if there is sufficient equity in the property to grant a larger loan.
  5. There are no concrete specifications for a bridge loan, as there are for conventional loan types. The bridge loan is provided by the lending company based on their own judgment and if it makes sense.


With our simple and competitive bridge loans, you have the advantage to respond quickly to business opportunities. Contact AgAmerica Lending for more information regarding Florida hard money loans and our Transitional Lending Program! Info@AgAmerica.com or 844-516-8176

Read More

How to Secure Hard Money Loans

As mentioned in our last post, hard money loans offer entrepreneurs and businesses options when quick funding is required to finance a special project (usually with a quick closing date) – a project that more rigid, institutional lenders (banks) cannot efficiently and swiftly provide. That all being said, it’s important to be a prepared borrower when applying for any loan type from any institution.

Certain factors definitely influence the ability to secure hard money loan approval.

For example, the type of project matters. Hard money is collateralized with the property in question. Thus, finding prime property (i.e. good location, good type of land, etc.) is of importance to hard money loan lenders. Other factors that may or may not be weighed include cash on hand, a decent credit score, cross collateral, and real estate investment experience. Also, it’s important to be highly communicative on your end. Be on top of things. Return calls promptly. All of this ensures that you get the right funds at the right time.

Beyond this, it’s important to do your research and have a plan of action. Know the area you want to invest in. While hard money loans are primarily secured with the property, it may still be helpful to round up all of your relevant documents because you may be asked about credit, income, and assets. It’s simple: Be prepared. Talking to a contractor is also incredibly helpful to really get a sense for the repairs the property requires.

Lastly, have a solid strategy for either selling or refinancing your property before the term ends. Knowing how you plan to repay the loan is a core factor in a hard money loan lender’s approval decision.

If you cover these bases, you should have a relatively smooth time securing the funding you need to jump on this special project!

Need funding fast? Contact AgAmerica Lending! Through our Transitional Lending Program we offer non-conventional, fixed or floating-rate bridge loan types to finance special opportunities quickly. Info@AgAmerica.com or 844-516-8176

Read More


Here at AgAmerica Lending, we provide a variety of loan products, including quick, turnaround loans. Recently, we funded a quick, turnaround bridge loan of $115,000 to finance a beach condo through our Transitional Lending Program.

What is the Transitional Lending Program?

Our Transitional Lending Program provides funding from $100,000 to $100 million and allows borrowers the ability to receive the fast and flexible funding they need when opportunities or situations arise. The low documentation process is often less time consuming than a standard bank loan. For example, this recent loan, traditionally taking up to six weeks to finance, took us less than two weeks to fund – an impressive, unmatched turnaround.

We offer the Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans – often called “hard money” loans – on the following asset classes:

  • Vacant Land, including Ag and Timberland Loans
  • Investment Real Estate Loans
  • Commercial Real Estate Intermediate Loans
  • Other Consumer Loans secured by approved collateral
  • Refinance/Debt Consolidation


As a team with over 80 years of combined lending experience, we have strong loan underwriting and property appraisal experience to ensure that financing is completed in a swift, steadfast fashion. Depending on the type of loan, funding can take as little as one to three weeks to complete. Rest assured, we offer real financing solutions when time is of the essence!

AgAmerica Lending is a money lender and mortgage investor based in Central Florida. As a licensed Florida Mortgage Lender and licensed Florida Consumer Finance Company, AgAmerica accepts, underwrites, funds, and services the loans it makes. AgAmerica Lending provides a variety of loan products, including conventional agricultural real estate loans and non-conventional, fixed or floating-rate bridge loans through its AgAmerica Lending Program and Transitional Lending Program. Visit our website for more information: Info@AgAmerica.com or 844-516-8176

Read More

Hard Money Loans: 5 Facts Investors Should Know

As a hard money lender, Bankers South offers the Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans on the following asset classes:

  • Agricultural Land and Timberland
  • Residential Development Land
  • Transitional Commercial Assets
    • Office
    • Apartments
    • Industrial
    • Retail
    • Hotels
    • Student Housing
    • Public Storage
    • Medical Offices
    • Existing performing and non-performing loans

It’s important to know that hard money loan lenders operate rather differently than traditional lenders. As private lenders, the terms and guidelines that hard money lenders follow are unique to that particular institution.

Here are some quick, simple facts all borrowers should know regarding hard money loans:

  1. What is a hard money loan? A hard money loan is a loan in which the investor receives financing based on the value of a property as opposed to the traditional lending conditions that banks typically assess such as credit scores, tax returns, and income statements.
  2. What are residential hard money loans? These are short-term bridge loans for investors who need to close swiftly. They are good for real estate acquisitions, refinancing, and foreclosures.
  3. What are the interest rates like as compared to traditional lending? Hard money loans usually carry higher interest rates because hard money lenders are not directly competing with traditional lending sources. However, these loans will usually keep borrowers from going into bankruptcy and foreclosure, thus saving their property.
  4. How secure is the investor? Bankers South hard money loans are secured by a property with 30% -50% equity, so the investor is well protected.
  5. Having difficulty finding traditional financing in time to save your investment property? A hard money loan may be your solution if your credit is less than perfect. Sure, the interest rates are higher, but you have the power to act fast and secure your investment property so you can flip and receive your profit.


Do you have more questions on hard money loans? Contact Bankers South Lending & Finance
for additional information regarding our Transitional Lending Program.
Read More