Learn more about Private Lenders Hard Money FAQ

Get the FAQ on Private Lenders and Hard Money Loans in NJ or NY

At Hard Money Lenders NJ, we take into consideration the borrower’s ability to pay as promised because we are responsible for our private investors money, and we do our research based on experience in order to keep both sides safe and as profitable as possible.
Plus our underwriting policies for Hard Money Loans and Commercial Hard Money Loans are clear and reasonable therefore
borrower/investor know exactly what they are getting themselves into.



  • Private money lenders are your best option.
  • When you contact a private money lender to fund your deal, here is what you can expect:
  • They lend from 70% up to 90% of the After Repair Value ARV
  • You pay 2 or 4 points
  • 10% up to 14%interest rate
  • 9 to 12 months term
  • For the renovation or repairs, there is a step by step system all private money lenders follow, here is a very good description of what you would have to do:
    1. Meet all your contractor’s team personally and ask for licenses and references.
    2. You ans your contractor should do a walk-through of the house and write a what is called a scope of work and a draw schedule
    3. The scope of work should start with he outside of the house to protect it from the elements and to secure it, to insure nobody can break in.
    • Private money to the rescue! Many private lenders will fund your purchase price AND repairs up front. This allows you to walk away from closing with cash when you BUY. I’ve walked away with a check for $15,000 before, which is common in the private money world.
  • Are you capped out at 10 mortgages but want to buy more rental properties?

    • Then borrow private money.
    • Due to FHA requirements, it’s close to impossible to get an investor loan if you already have 10 mortgages on your credit report. With private lenders, you can resume adding to your portfolio by taking out long-term loans from these lenders. If you get a good enough interest rate, you can still make tremendous cash flow.
  • Do you want to buy rentals but can’t qualify for a mortgage?

    • Then borrow private money.
    • If you can’t qualify for a mortgage because of your credit score, income, or some other factor, private money is the answer.
    • Many private lenders are less interested in those negative factors if you can show them that you’re responsible and trustworthy.
    • Your rentals can still provide cash flow – often lots of it – with private money because some lenders are lending at such low interest rates and some are willing to grant long-term loans.
  • Are you new to investing and want a leg up?

    • Then borrow private money.
    • In an example above, I showed you how to save/make an extra $6,000 on a typical deal by using private money.
    • If you’re a new investor, take all of your savings from borrowing private money (instead of hard money) and plow that into your marketing efforts. You’ll steamroll your local competition and establish yourself as a big name around town in a flash.
    • Or use the extra $6,000 to make up for any mistakes that you make during the rehab or sale/lease of a property. It’s funny how money can solve so many problems.
  • Do you want to reduce the interest rate on an existing mortgage by doing a refi?

    • Then borrow private money.
    • If you’re holding properties at an interest rate of 10-12% or higher, then refinance to a lower interest rate using the money from a private lender in this list. Many lenders will agree to a lower rate for long-term loans.
    • Let’s say that you own a rental property and the numbers look like so:
      • Loan amount: $80,000
      • Interest rate: 12%
      • Loan term: 30 years
      • Monthly mortgage payment on a 30-year note: $823
      • Other expenses: $300
      • Total expenses: $1,123
      • Rental income: $1,200
      • Cash flow: $77
    • If you can cut your interest rate in half with a private money refi, the numbers will look like so:
      • Loan amount: $80,000
      • Interest rate: 6%
      • Loan term: 15 years
      • Monthly mortgage payment on a 15-year note: $675
      • Other expenses: $300
      • Total expenses: $975
      • Rental income: $1,200
      • Cash flow: $225
    • Did you see what happened? By cutting your interest rate from 12% to 6%, you increased your cash flow from $77 to $225. That’s an extra $148 in your pocket each month… or $1,700 per year! PLUS, you’ll pay it off in 15 years instead of 30, which is an even bigger deal than the monthly cash flow increase.
  • Do you want to do a “cash out refi” on an existing property?

    • Then borrow private money.
    • Let’s say that you need money because you are in a financial bind. Or maybe you have an investment opportunity that you’d like to pursue. But you don’t have the available funds.
    • Enter the “cash out refi.” If you have a property that is “free and clear” or one that is paid down substantially, you can borrow private money against that property and then spend the funds on your problem or opportunity.
    • Banks and mortgage companies used to fund cash out refis left and right. Not anymore! But who cares? You’re about to replace them with private money.
  • Would you like to make ZERO monthly payments while you rehab a property?

    • Then borrow private money.
    • Many private lenders will allow you to pay all of the interest at the time you SELL the property. So your monthly payment while you hold the property is, well, zero. Talk about relieving the financial pressure of a rehab!

As you can see, private money can be the greatest tool in your tool belt for just about any investing situation. And that’s why so many “gurus” have jumped on the private money bandwagon lately. A few are selling lists of private money lenders. If you have seen these offerings and are wondering what makes this list different, then please read below. You’ll find the difference to be night and day…

How this private money list compares
to lists that some gurus are selling…

A few investing gurus have recently been selling lists of private lenders. It’s important to know the differences between their lists and our list. My goal is not to “knock them” but to inform you.

They compile their lists by mining through the county records to find individual lenders. They gather the name and physical mailing address for each lender. It’s then your job to send letters to these lenders in hopes of borrowing their funds.

While there’s a chance you can find a lender, there are numerous drawbacks to their lists. These include:

  • Their lists do not contain the lenders’ phone number, email address, interest rate requirements, or loan amount. Just a name and mailing address.
  • Your only option is to send a letter. And letters require you to spend your money on postage and your valuable time licking and sticking.
  • From what I’ve seen and heard, most of the people on those lists sold on owner financing – probably because they had to. They are NOT private lenders.
  • Of the potential private lenders, many lent once. But that doesn’t mean they’re looking to lend again. In other words, they didn’t raise their hand and say “I’m looking to lend now. Please contact me.” Therefore, they’re naturally less motivated to lend than those who have indicated they are ready to lend now.
  • You don’t know their interest rate requirements or how much money they have to lend up front, so it’s more difficult to find a starting point.
  • Since they didn’t expect to be contacted, it’s likely that many will be turned off by an unsolicited request for their funds. It’s not good for the future of your relationship if their first thought is, “How did they get my address and why do they want my money?”
  • Most people simply throw away mail from people they don’t know. It is generally known that response rates from letters and other direct mail are less than 1%.
  • An associate who purchased one such private money list and sent direct mail informed me that he had little to no success.

By now, it should be clear that the list we’ve created is extremely powerful. It contains the name, phone number, and email address of people who are lending in today’s market… in the Paterson area … to investors like you. Plus, it tells you how much they have to lend and at what interest rate.

It’s a list unlike anything you’ve ever seen before. It’s a list that can save you $6,000+ over hard money on your next deal alone. Or it can enable you to make $20,000+ on a deal that would otherwise be out of your reach.

So if your next thought is not…

“Where do I sign and how can I get my hands on this list now?”

…then real estate investing may not be your calling! I’m just being honest and direct here.

I’m sorry to say that, but it’s very true. Making money as an investor requires being able to identify HUGE opportunities. I can guarantee you there are investors jumping all over this right now. They know its value to their investing business.

You need to do the same. Be able to recognize a stellar opportunity and GRAB it!

That’s where breakthroughs are made. That’s where goals are achieved. That’s where dreams come true. Being timid or indecisive is what prevents people from gaining an edge, from growing, and what prevents them from earning major wealth.

So be sure to take action when you see something golden. Make sure you take advantage of REAL opportunities and real methods that will increase your knowledge, wealth and results. Take action!

Making money in real estate investing is no different
than making money in any other kind of business…

It takes being bold and being willing to make decisions… and being someone who makes things happen.

And I’m willing to do my best to help you make it happen. I kept that in mind when deciding what to do with this list — to keep it for myself or to share it — to price it high or to price it low.

I won’t bore you with how many “experts” have told me I should keep this list to myself or sell it for thousands of dollars. Some have said $10,000+ considering its power.

This list is so powerful because it enables its owner to tap into the private money goldminewith little to no effort. These lenders are sitting there “on a platter” with “money in hand” just waiting for your call or email. After all, they already know that you’ll be contacting them.

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