Frequently Asked Questions

A hard money loan is a short-term, asset-based real estate loan secured primarily by the value of the property being used as collateral rather than the borrower's employment income or debt-to-income ratio. These loans are commonly used by real estate investors who need fast, flexible financing to purchase, renovate, refinance, or bridge investment properties.

Unlike traditional banks, which often have lengthy approval processes and strict underwriting requirements, hard money lenders focus primarily on the strength of the real estate, the available equity, the borrower's experience, the proposed business plan, and the exit strategy. Because underwriting is collateral-based, hard money loans can often close significantly faster than conventional loans.

A private money lender is an individual, private company, or investment fund that provides real estate loans outside the traditional banking system. Unlike banks and credit unions, private lenders typically focus on the property's value, available equity, the strength of the investment, and the borrower's exit strategy rather than strict income and debt-to-income requirements.

Brighton Asset Management is a direct private money lender that provides business-purpose financing for real estate investors nationwide.

A hard money loan is primarily secured by the value of the property, while a conventional loan is primarily based on the borrower's personal financial profile.

Hard money lenders generally evaluate:

• Property value
• Available equity
• Project feasibility
• Borrower experience
• Exit strategy

Conventional lenders typically emphasize:

• Employment history
• Income verification
• Debt-to-income ratio
• Credit history
• Lengthy underwriting

Hard money loans are commonly used by real estate investors, house flippers, builders, developers, landlords, and business owners who need fast, flexible financing for investment properties, including to purchase investment properties, finance fix-and-flip projects, renovate real estate, refinance existing loans, access equity, or bridge the gap until selling or obtaining long-term financing.

Yes. Hard money loans are legal throughout the United States when originated in compliance with applicable federal and state laws. Lending requirements vary by state, so experienced private lenders structure each loan to comply with applicable laws.

Investors choose hard money loans because they offer speed, flexibility, and financing options that traditional banks often cannot provide, including faster closings, flexible underwriting, financing for distressed properties, renovation funding, bridge financing, cash-out refinancing, and the ability to move quickly in competitive markets.

ARV is the estimated market value of a property after all planned renovations or improvements have been completed. It's calculated by evaluating the property's expected condition after construction and comparing it to recently sold, similar properties nearby.

For example, if an investor purchases a property for $250,000, spends $75,000 on renovations, and comparable renovated homes are selling for $425,000, the property's estimated ARV would be $425,000.

LTV measures the relationship between a loan amount and a property's current market value: Loan Amount ÷ Current Property Value = LTV.

For example, if a property is worth $500,000 and the loan amount is $350,000, the LTV is 70%. A lower LTV generally means more borrower equity, which typically reduces risk for the lender.

LTC measures the loan amount compared to the total cost of a real estate project: Loan Amount ÷ Total Project Cost = LTC.

For example, if a property costs $300,000, renovations total $100,000, and the lender provides a $320,000 loan, the project's total cost is $400,000, resulting in an 80% LTC.

A first lien is the primary legal claim against a property and gives the lender the highest repayment priority if the property is sold or foreclosed. Most hard money loans, including Brighton Asset Management's, are secured by a first lien because it provides the strongest collateral position.

Cross-collateralization is when a lender uses more than one property as collateral to secure a single loan. By pledging additional real estate, borrowers may qualify for a larger loan amount or improve their LTV. Brighton Asset Management may consider this on a case-by-case basis when it strengthens the overall transaction.

A balloon payment is the large, final payment due at the end of a loan term after the borrower has made regular monthly interest payments. Brighton Asset Management's loans are interest-only, with the full principal repaid at maturity through sale, refinance, or another approved exit strategy.

Brighton Asset Management offers short-term business-purpose real estate loans including fix-and-flip loans, bridge loans, renovation financing, construction financing, and cash-out refinance loans.

A bridge loan is a short-term real estate loan that provides temporary financing until a longer-term solution becomes available, such as selling a property or refinancing into permanent financing. Bridge loans are frequently used when an investor needs to act quickly on an opportunity, stabilize a property before refinancing, or bridge the gap between purchasing one property and selling another.

A fix-and-flip loan is a short-term loan used to purchase and renovate a property with the goal of reselling it for a profit. Brighton Asset Management regularly finances fix-and-flip projects for experienced and emerging real estate investors.

Yes. Brighton Asset Management provides cash-out refinance financing for investment properties when supported by sufficient equity, property value, borrower qualifications, and an acceptable exit strategy.

Yes. Brighton Asset Management finances non-owner occupied rental properties including single-family rentals, multifamily properties, mixed-use buildings, and commercial real estate.

Brighton Asset Management finances a variety of investment properties, including non-owner-occupied single-family residences, multifamily properties, mixed-use properties, industrial properties, and commercial real estate.

No. Brighton Asset Management provides business-purpose financing and does not originate consumer mortgages for owner-occupied primary residences.

Generally, Brighton Asset Management requires a minimum credit score of 620. However, every loan is evaluated holistically based on collateral value, available equity, borrower experience, liquidity, additional collateral, and the proposed exit strategy, so there may be flexibility depending on the overall strength of the transaction.

No. Experienced investors may qualify for enhanced leverage or terms, but Brighton Asset Management often works with new or first-time real estate investors.

Yes. First-time investors may qualify depending on the strength of the project, available liquidity, collateral position, and overall risk profile.

Business-purpose real estate loans are primarily underwritten based on the property, project, borrower strength, and exit strategy rather than traditional employment income. However, documentation is still required to help assess the borrower's financial position and ability to service the loan.

Yes. Brighton Asset Management requires a personal guaranty for each loan that it funds.

No. Brighton Asset Management only originates loans to business entities (LLCs, Corps, TICs, etc.) rather than individuals.

Yes. Brighton Asset Management commonly lends to limited liability companies and other business entities formed for real estate investment purposes.

Brighton Asset Management requires that the borrower have an ITIN and a US bank account.

Yes. Borrowers should generally maintain a minimum of $15,000 of liquidity to support the project, loan servicing, and any unexpected costs. This minimum may increase with loan size.

Clean, complete loan files can close in as little as 7 to 10 business days, depending on the complexity of the transaction, title, insurance requirements, and borrower responsiveness.

Borrowers can submit a loan application online, or contact the lending team at info@brightonassetmanagement.com.

Our underwriting team, working with our partners at The Hard Money Co., reviews the transaction, evaluates the collateral, and issues a term sheet if the transaction meets our lending criteria.

For all loans:

• Completed loan application
• Unexpired government-issued ID
• Articles of Organization/Incorporation and EIN
• Operating Agreement or Bylaws
• Certificate of Good Standing
• Two months of business bank statements or Plaid verification
• Borrower real estate experience details

For purchase loans, additionally:

• Fully executed purchase contract (borrowing entity as purchaser)
• Earnest money receipt
• Detailed line-item scope of work and renovation budget
• Assignment agreement and wholesale fee disclosure, if applicable

For refinance or cash-out loans, additionally:

• Current property photos (all rooms and mechanical systems)
• Mortgage payoff statement, if applicable
• Verification of Mortgage (VOM)
• Detailed line-item scope of work if rehab funds are requested
• Letter explaining the purpose of the cash-out request
• Lease agreement, if the property is occupied
• Personal Financial Statement (PFS) for loans over $500,000

Underwriting is the process lenders use to determine whether to approve your loan. At Brighton Asset Management, underwriting evaluates the property's value, borrower strength, exit strategy, liquidity, experience, and project feasibility.

No. Brighton Asset Management does not require an appraisal, but it is welcomed information if available.

For renovation projects, Brighton Asset Management disburses a portion of the total loan proceeds at closing, with the remaining funds held in a construction repair escrow. As work is completed, borrowers submit progress photos through a dedicated portal, and Brighton Asset Management typically approves and funds requested draws within 24 hours.

Loan origination points are fees paid at closing for originating the loan, expressed as a percentage of the total loan amount.

Yes. Brighton Asset Management loans accrue interest in accordance with the loan documents. Loans are structured as interest-only, meaning borrowers make monthly interest payments while the principal balance is due at payoff.

Closing costs may include title insurance, recording fees, legal fees, valuation expenses, lender fees, and other customary transaction costs. All costs are listed clearly on Brighton Asset Management's Loan Disclosure Documents.

Brighton Asset Management doesn't charge any fees unless a loan closes, and does not charge any prepayment penalties. Borrowers may pay off a loan at any point during the loan term.

An extension fee is charged when a borrower requests additional time beyond the original 6-month loan maturity date.

An exit strategy is the plan for repaying a hard money loan before it matures, most commonly by selling the property, refinancing into long-term financing, or using proceeds from another asset sale. Brighton Asset Management evaluates every borrower's proposed exit strategy as part of underwriting.

The outstanding principal, accrued interest, and any other amounts due must be repaid according to the loan documents. If circumstances change, Brighton Asset Management encourages borrowers to communicate early to discuss potential options.

Construction delays, permitting issues, contractor scheduling, and unexpected repairs can all extend a project's timeline. Contact Brighton Asset Management as soon as possible, as loan extension options may be available depending on the circumstances.

Yes. Many borrowers refinance into a conventional mortgage, DSCR loan, commercial loan, or other long-term financing once the property has been renovated, stabilized, or leased.

Brighton Asset Management offers extensions for a fee. Borrowers should contact BAM as early as possible if they anticipate needing additional time.

If a loan is not repaid by its maturity date, it is considered in default under the loan documents unless an extension or other agreement has been approved. Borrowers who anticipate repayment challenges should contact Brighton Asset Management as soon as possible.

Yes. Brighton Asset Management is a direct private lender that partners with mortgage brokers, commercial loan brokers, loan originators, and referral partners throughout its lending footprint.

Yes. Broker fees are separate from and in addition to Brighton Asset Management's loan points, and are fully disclosed prior to closing.

Brokers can submit loan requests directly through Brighton Asset Management's online loan application. Providing complete and accurate information upfront helps our underwriting team evaluate the transaction more efficiently.

Yes. Every transaction is evaluated individually. First-time investors may qualify based on the property's equity, available liquidity, project strength, collateral, and exit strategy.