Hard Money Loans in Chicago: The Complete Investor Guide
If you are looking to scale your real estate portfolio in the Midwest, understanding how to leverage hard money loans is your ultimate competitive advantage.
What is a Hard Money Loan?
A hard money loan is a short-term, asset-backed loan secured by real estate. Unlike traditional mortgages that focus heavily on your personal income and credit score, hard money loans are approved based primarily on the value of the property (specifically the After Repair Value, or ARV).
Our Standard Rates & Terms
-
Loan Amounts: $50,000 to $2,500,000+
-
Interest Rates: Competitive asset-based rates.
-
Loan-to-Value (LTV): Up to 65%–85% of ARV.
-
Terms: 6 to 24 months (with extension options available).
-
No Prepayment Penalties: Pay it off as soon as your project is done.
How It Works
-
Apply Online: Submit your scenario via our quick apply page.
-
Asset Valuation: We review the property data and your project strategy.
-
Term Sheet: Get a transparent, no-obligation offer within 24 hours.
-
Fast Closing: Our legal and title teams push the paperwork through to fund in days.
Frequently Asked Questions
Q1: Who typically uses a hard money loan?
Real estate investors, house flippers, landlords buying distressed properties, and developers looking for quick bridge financing use hard money loans to bypass the slow bank approval process.
Q2: Do I need perfect credit to get approved?
No. Because these are asset-backed real estate investor loans, your credit score is secondary to the profitability and equity of the property.
Q3: How fast can Private Lending Groups fund a loan?
Our average closing time is 7 to 10 days, though we have funded urgent deals in as few as 5 business days.
Q4: Can I use a hard money loan for a primary residence?
No. We strictly offer commercial loans for business purposes, meaning the property must be an investment property (non-owner occupied).
Q5: What is the difference between hard money and private money?
Hard money is typically offered by structured lending institutions like Private Lending Group, offering predictable terms and larger capital pools. Private money often refers to individuals lending personal capital.
Q6: Do you fund the rehab costs for fix-and-flips?
Yes! We offer fix-and-flip loans that cover up to 100% of the renovation budget (minimum FICO 680), disbursed in fast, hassle-free draws.
Q7: What types of properties do you lend on?
We fund single-family residential investments, 2-4 units, multi-family complexes, mixed-use buildings, and commercial real estate.
Q8: What upfront fees do you charge?
We believe in transparency. All commitment fees, points, and closing costs are clearly outlined in your initial term sheet—no hidden surprises at the closing table.
