Very quick hard money funding but super expensive - for use as last resort
September 09, 2024
by a searcher in Tampa, FL, USA
This may not be the exact best place to post but there are probably a few scenarios where this would be helpful to people on the platform.
My friend has had several tech exits and now has cash that he lends out. I help connect him with deals.
His minimum note size is $500k and max is $10m
Generally most notes are going to be in the 3-6 month range with a minimum of 45 days and it will be very expensive, 10% per month.
Turn times are measured in days rather than weeks or months.
From what I have seen, the most common application is as a bridge to more advantageous funding sources - large contract payouts, investors coming on board, lighting quick acquisition opportunities, etc.
I would say that for the vast majority of regular search deals - this would be a bad source of funds. Not something you would want to do.
Here is more of the specific criteria:
1. Required: High net worth personal financial statement individual with some solid assets that can be leveraged.
2. Required: Commercial real estate interests they can lien for us which have at least a 2 to 1 equity to debt ratio. These assets also need to be real solid asset values not conflated or speculative values which we will simply deny.
3. Nice to have: Ideally those assets are bringing in cash flow as well
I am happy to make intros / connect if the above is helpful.
in Montreal, QC, Canada
from Massachusetts Institute of Technology in Portland, OR, USA
If anyone else has questions on Hard Money, or related topics, please post them and I'll do my best to get them answered for you here.