The Best Michigan Hard Money Lenders for Fix-and-Flip, Rental, and New Construction Loans
Finding the right hard money lender can be a challenge, particularly in states like Michigan, which has significantly fewer hard money lenders than states like New York, Florida, or even its close neighbor, Illinois. However, that doesn’t mean that there still aren’t quite a few options for Michigan real estate investors to choose from.
In this article, we’ll review the top 10 hard money lenders in Michigan. We’ll look at factors including their available loan programs, origination points, maximum allowable LTV, and credit requirements so that you can make an informed choice about how to invest. Because there are so few hard money lenders active in Michigan, we’ve included some lenders in other states who regularly serve the Michigan market.
Before reviewing our lender list, consider checking out these resources to help guide you on your real estate investing journey in Michigan.
Michigan Real Estate Market Snapshot
As of July 2022, the average sale price for a home in Michigan was $260,000, signigicantly less than the nationwide average of $378,000. The metro areas with the fastest year-over-year sales price increases included Mattawan (51.5%), Fenton (49.2%), Bloomfield Hills (46.8%), Manistee (38.9%), and Detroit (35.4%). Over the last 12 months, 57% of homes sold over the listing price, while homes spent an average of 13 days on the market.
The Top Markets for Rental Property Investing in Michigan
Right now, a few of the top markets for real estate investing in Michigan include:
- Ann Arbor: Average home prices in Ann Arbor are currently $489,751, up 13.3% from the past year.
- Grand Rapids: Average home prices in Grand Rapids are $265,785, up 16.9% from the past year.
- Lansing: Average home prices in Lansing are $143,955, up 13.4% from the past year.
Michigan Real Estate Organizations for Investors
According to Hard Money Lender few of the top organizations for real estate investors in Michigan include Michigan Real Estate Investors, Real Estate Investors Association of Oakland, and the Real Estate Investors Association of Wayne, all of which offer regular meetings and a wide array of networking events.
1. Dr. Daniel & Sons Investment Real Estate Capital
Dr. Daniel & Sons Investment Real Estate Capital is a Michigan-based private lender with over 50 years of lending experience. They offer loans for non-owner-occupied residential and commercial real estate.
Prospective private loan terms include:
Loan Size: $50,000 to $500,000
Loan Term: Up to 7 years
Closing Timeline: As little as 36 hours, most loans close within 15-30 days
In addition to purchasing real estate, they offer loans for agricultural and general business purposes. Eligible property types include multifamily properties, farmland, general commercial properties, recreational properties, vacant land, and mobile homes with land attached. The company also purchases private mortgage notes and land contracts.
Dr. Daniel & Sons Investment Real Estate Capital is led by owner Allan Daniels.
2. Hard Money Global
Hard Money Global is a Detroit-based hard money lender which offers residential, commercial, and personal loans. Fix-and-flip loans include leverage up to 90% of a property’s purchase price and 100% of rehab costs, with 12-month loan terms. Their fix-and-flip loan program requires no experience and does not require credit checks. Their personal and business loan programs offer same-day funding.
Hard Money Global is currently led by CEO Lee Anthony.
3. Private Lending Group
Chicago-based Private Lending Group may be based in Illinois, but it provides loans across the U.S., including for investors in Michigan. They provide capital mainly for non-owner occupied single-family properties, 2 to 4-unit residential properties, condos, townhomes, multifamily properties, commercial properties, raw land, and new construction projects. Closing costs can typically be rolled into the total loan amount. In addition to providing loans, the company also invests in distressed homes and sells mortgage notes to investors.
Typical private loan terms include:
Loan Size: $40,000+
LTV: 75% LTV, Up to 65% ARV
Interest Rates: 5-12%
Loan Origination Fees: 2-4% (minimum $4,000)
Credit Score Requirement: 580 minimum (lower credit scores allowed on a case-by-case basis)
Prepayment Penalties; 4 months interest
4. Medford Capital
Illinois-based Medford Capital is a private lender and asset management firm that provides capital to developers, fix and flip investors, corporations, probate estates, and sub-prime money borrowers. They have 25 years of lending experience and focus on providing loans for properties in central Midwestern markets, including northeastern Illinois, southeast Wisconsin, northwest Indiana, and southwest Michigan.
Typical hard money loan terms include:
Loan Term: 6-12 months
LTV: 70%
Interest Rate: 10-12%
Loan Origination Fee: 3-5% per 6-month period, pro-rated for longer loans
Medford Capital is currently managed by partners Stuart Urkov, Luke Wojtasik, Michael Kaufman, and Marc Bear.
5. Broadmark Realty Capital
Broadmark Realty Capital may be based in Seattle, Washington, but they regularly lend to investors in the Michigan market. The company has been lending for over a decade and has funded more than $2 billion of loans. Lending options include construction loans, land development loans, bridge loans, and heavy redevelopment loans. Eligible property types include multifamily properties and commercial, office, hospitality, and industrial buildings.
Hard money loan terms typically include:
Loan Size: $500,000 to $50 million
LTV: Up to 65% ARV
Closing Timeline: As little as 5 days
Prepayment Penalties: None
Broadmark Realty Capital is currently led by CEO Brian Ward.
6. Bridgewell Capital
Orlando-based Bridgewell Capital lends to borrowers nationwide, including for borrowers in Michigan. Bridgewell Capital offers a variety of hard money loan programs, including long-term rental loans, fix-and-flip loans, fix-to-rent loans, cash-out refinances, multifamily loans, and commercial real estate loans.
Hard money loan terms include:
Loan Size: $500,000 to $50 million
LTV: Up to 65% ARV
Interest Rates: Long-term rental loans starting at 6.125%
Loan Terms: Up to 30-years for long-term rental loans
Closing Timeline: As little as 5 days
Prepayment Penalties: None
Bridgewell Capital is currently led by CEO Patrick J. Sanchez.
7. HM Capital
HM Capital is a hard money loan broker with operations across the United States, including Michigan. They aim to match borrowers with the best private money lenders in their local area in the hope of achieving significantly better rates and terms. Loan programs offered through HM Capital include fix-and-flip loans, commercial real estate loans, multifamily loans, residential property loans, bridge loans, office loans, and transactional funding. As they do not lend directly, terms vary on a deal-to-deal basis.
8. LendingOne
LendingOne is a Boca-Raton, Florida-based nationwide hard money lender offering programs include fix-and-flip loans, rehab to rent loans, buy and hold loans, portfolio rental property loans, multifamily bridge loans, private money loans, and new construction financing. LendingOne can provide borrowers up to 90% of the rehab cost with their fix-and-flip and fix-and-hold loan programs. Their residential loan programs have terms including:
Loan Size: $75 to $5 million, starting $500,000 for new construction projects
Loan Term: 12-24 months for new construction, 24 months interest-only for fix-and-flips, and up to 30-year fixed rate or 5-year ARM for buy-and-hold loans
LTV: Up to 90% of purchase and repairs, up to 75% for buy-and-hold loans
Closing Timeline: As little as one week
Prepayment Penalties: None
Portfolio Loans: Available for 5+ properties
LendingOne is currently led by CEO Matthew Nessier.
9. New Silver
Brookline, Massachusetts-based New Silver is one of the best-known hard money lenders in the United States. They offer fix-and-flip loans, rental property loans, ground-up construction loans, and even personal loans. Terms for their loan programs include:
Loan Size:
Fix-and-Flip: $100,000 to $5 million
Rental: $100,000 to $2 million
Ground Up Construction: $100,000 to $5 million
Loan Term:
Fix-and-Flip: 12 months with extensions, interest-only
Rental: 30-year fixed
Ground Up Construction: 24 months
LTV:
Fix-and-Flip: Up to 85% loan to project cost, 100% construction financing and ARVs up to 75%
Rental: Up to 80% LTV or LTPP (loan-to-purchase-price)
Ground Up Construction: Up to 85% loan to project cost, 100% construction financing and ARVs up to 75%
DSCR: 1.0x minimum DSCR for rental property loans
Interest Rate:
Fix-and-Flip: 8-10.5%
Rental: Starting at 6%
Ground Up Construction: 8-10.5%
Loan Origination Fee:
Fix-and-Flip: Starting at 1.875%
Rental: 3%
Ground Up Construction: Starting at 1.875%
Credit Score:
Fix-and-Flip: 650 plus, no hard credit pull
Rental: 680 plus
Ground Up Construction: 650 plus, no hard credit pull
Eligible Properties:
Fix-and-Flip: 1-4 unit residential, multifamily properties up to 50 units
Rental: 1-4 unit residential properties
Ground Up Construction: 1-4 unit residential, multifamily properties up to 50 units, condos, townhomes
The company provides free proof of funds letters, can provide funding for both purchases and refinances, does not require any borrower real estate experience, and offers discounts for repeat borrowers. Ground-up construction projects must be shovel-ready to be eligible for financing. In addition to lending in Michigan and Massassachusets, the company lends to borrowers in most states, except for Idaho, Vermont, Alaska, Nevada, North Dakota, Oregon, Arizona, Washington D.C., Minnesota, South Dakota, and Utah.
New Silver is currently led by Co-Founder and Chief Risk Officer Alex Shvayetsky.
10. Lima One Capital
Tampa, Florida-based Lima One Capital funds investors engaging in fix-and-flip projects, and new construction builds, while also financing 1-4 unit residential rental properties, rental portfolios, and 5+ unit multifamily investments. The terms for their loan programs include:
Loan Size:
Fix-and-Flip: $75,000 to $5 million
Rental: $50,000 to $1 million
Build to Rent
Ground Up Construction: $100,000 to $5 million
Multifamily:
Value-Add Bridge: Up to $20 million
Long-Term Hold: Up to $10 million
Loan Term:
Fix-and-Flip: 12 months with extensions, interest-only
Fix-to-Rent: 13, 19, 24-month term options for construction financing,
5, 10, 30-year term for long-term rental loans
Rental: 5, 10, 30-year options
Ground Up Construction: 13, 19, 24-month term options, interest-only
Bridge Plus: 13, 19, 24-month term options
Multifamily:
Value-Add Bridge: 24-36 month, interest-only
Stabilized Bridge: 24-36 month, interest-only
Long-Term Hold: Amortized and interest-only options
Short-Term Rentals: 5, 10, 30-year options
LTV:
Fix-and-Flip: Up to 90% LTC, 75% LTV
Rental: Up to 80% LTV on purchases and refinances, up to 75% on cash-out refinances
Ground Up Construction: Up to 90% LTC, 75% LTV
Bridge Plus: Up to 80% LTV
Multifamily:
Value-Add Bridge: Up to 85% LTC, 70% LTV
Stabilized Bridge: Up to 75% LTC/LTV
Short-Term Rentals: Up to 75% LTV on purchases, up to 70% LTV for cash-out refinances
DSCR: Requirements are flexible; low or no cash flow is permitted for bridge loans
Eligible Properties:
Fix-and-Flip: 1-4 unit residential
Rental: 1-4 unit residential properties
Ground Up Construction: 1-4 unit residential properties
Multifamily: 5 to 100 units for long-term hold loans
Credit Score: Minimum FICO 700 for short-term rentals
Occupancy: Long-term hold multifamily loans require 80% minimum occupancy
Non-recourse options are offered for most loan programs. Long-term hold multifamily loans permit foreign nationals to obtain property financing. Portfolio loans are allowed for borrowers with two or more properties. They have 5, 10, and 30-year options, no maximum loan or unit count. They offer a variety of term and interest-rate options, including fixed-rate loans, ARMs, fully amortizing, interest-only, and balloon loans.
New Silver is currently led by President and CEO Jeff Tennyson.
Who are the Best Hard Money Lenders in Michigan?
Some of the best hard money lenders in Michigan include: Dr. Daniel & Sons Investment Real Estate Capital, Hard Money Global, Private Lending Group, and Metford Capital.
What is a Hard Money Loan in Michigan?
A hard money loan is a type of asset-based real estate loan that focuses on a property's value as collateral rather than the borrower's qualifications, such as income or credit score.
Do Michigan Hard Money Lenders Require Credit Checks?
Many hard money lenders in Michigan do not require credit checks for their basic loan progams, though they sometimes require them for long-term hard money loans, hard money construction loans, or lower-interest loans.
How Fast Can I Get a Hard Money Loan in Michigan?
Some lenders fund loans in as little as 24 hours, while others may take up to 3-4 weeks.
What are the Interest Rates for Hard Money Loans in Michigan?
Interest rates are generally between 7-13%. Some lenders charge as low as 5%, while others charge as high as 20%.