RBI Private Lending for Hard Money Loans—What To Know Before You Apply


Real estate investment is one of the best strategies to generate big money in the long run, but you need to have a dependable lender to stay ahead in the game. Most banks, with their extensive and time-consuming screening procedures, don’t cut it in the competitive real estate market. RBI Private Lending is one of the many private lenders in the country that make property funding more accessible.

It can get stressful to evaluate private financiers because their products appear similar on the surface. In case you’re checking out RBI Private Lending, you have to examine factors like borrowing ease, cost, and customer service to determine if it works for you. We have discussed the following topics in this guide:

  • RBI Private Lending products
  • Funding metrics and processing ease
  • Top alternatives for the lender

RBI Private Lending—A Lender for Hard Money Real Estate Loans

RBI Private Lending is a hard money lender, providing loans based on the value of the collateral—unlike banks that use your financial standing and income potential to determine your credibility as a borrower. Keep in mind that hard money loans are short-term products. The lender’s yield is concentrated over 1–3 years (as compared to 10–30 years for banks), so your interest rates will be higher than the prime lending rates.

RBI Private Lending currently offers six hard money products—they are:

  1. Fix-and-flip loans
  2. New construction loans
  3. Rental loans
  4. Bridge loans
  5. Commercial loans
  6. Land loans

Fix-and-Flip Loans

The convenience of  fix-and-flip loans is what made hard money financing popular in the real estate scene in the first place. The product facilitates property flipping businesses—for example, the borrower wants to buy a decrepit property whose value can be increased with repairs. They go to a hard money lender to finance a portion of the costs (purchase + repairs). When the renovation is done, the borrower sells the property and repays the loan while still keeping enough profit to take on another deal.

RBI Private Lending offers fix-and-flip loans with interest rates starting at 9.99%. Depending on your property rehabbing experience, you can get up to:

  • 85% of the loan-to-cost (LTC)
  • 70% of the after-repair value (ARV)

Like other hard money lenders, RBI Private Lending offers balloon mortgages, which entail interest-only monthly payments and the principal sum repayment at maturity. Check out some essential aspects of the lender’s fix-and-flip loans below:

AspectRBI Private Lending—Fix-and-Flip
Eligible property• Condominium
• Single-family residence (1–4 units)
• Multi-family home
• Townhouse
Tenure12–18 months
Lending limit$5,000,000
Borrowing cost• Interest rate—9.99% and up
• Origination fees—1% to 2%
• Title fees—1%
• Other expenses—around $5,000
Closing time10–15 days

RBI Private Lending treats fix-and-flip funding like construction loans. You have to provide a detailed renovation budget and feasibility report, and the amount will be released to you according to a draw schedule.

Source: Cal David

New Construction Loans

RBI Private Lending’s construction loan has a structure similar to its property flipping products but with a higher lending range and interest cost. Get more details from the following table:

AspectRBI Private Lending—Construction Loan
Eligible property Condominium
• Single-family residence (1–4 units)
• Multi-family home
• Townhouse
Tenure12–24 months
Lending limit$10,000,000
Borrowing cost• Interest rate—10.5% and up
• Origination fees—1% to 2%
• Title fees—1%
• Other expenses—over $5,000
Closing time20–30 days

You can typically qualify for 70% of the project cost, but applicants with no construction experience will only be considered for up to 55% LTC—the funding is available in draws. The lender evaluates deals based on detailed contractor information, project scope and budget, and your track record sheet.

Rental Loans

Rental properties are a source of passive income, so short-term hard money loans usually don’t work for them. RBI Private Lending offers rental property loans for a term of up to 40 years, the minimum interest rate being 7.75%. The lending limit is 80% loan-to-value (LTV) of the hard asset, limited to $1,500,000. Because it’s a modified long-term loan, you must fulfill two additional criteria to qualify:

  1. Debt-Service Coverage Ratio (DSCR)—Your property should have a DSCR of at least 1.0 to qualify for a rental loan. Here’s the formula to calculate it:
    • Annual rental income ÷ Annual debt obligations on the property
  2. Credit score—RBI Private Lending services rental loans to applicants with a minimum credit score of 660

The lender offers amortized rental loans, so you will have an equated monthly payment throughout the tenure of the mortgage.

Bridge Loans

Bridge loans are used to finance real estate deals that require immediate action. You eventually pay off the loan by arranging a long-term refinance or selling an existing property.

RBI Private Lending can set you up with bridge loans within ten days, provided you have the purchase contract (if applicable) and other financial documents ready. The tenure should be between two weeks and three years. Other lending terms are similar to those specified for a new construction loan package

Commercial Loans

RBI Private Lending offers commercial loans to business entities dealing in commercial and retail structures. The interest rates and closing costs for these instruments are higher than what’s charged for residential mortgages. Refer to the table below to get more insight into the product:

AspectRBI Private Lending—Commercial Loan
Eligible property• Apartment
• Building
• Hotel
• Office
• Restaurant
• Warehouse
Tenure12–24 months
Lending limit$10,000,000
Maximum LTV65%
Borrowing cost• Interest rate—10.9% and up
• Origination fees—1% to 2%
• Title fees—1%
• Other expenses—up to $8,000
Closing time10–20 days

Know that the lender checks the financial standing of the entity (like LLC or corporation) that applies for the commercial loan—not the individual owner.

Land Loans

Getting a construction loan is impossible without plans and permits, but you can still secure a small loan based on the as-is value of the land. RBI Private Lending collateralizes the land to provide you with a decent amount to start the construction work.

RBI’s land loans are only available for up to 50% of the property value. The interest rates start at 11.5%, making it one of the most expensive products of RBI Private Lending.

Source: Mikael Blomkvist

RBI Private Lending—Application Process and Associated Costs

RBI Private Lending requires applicants to fill out an online form (accessible from their homepage). You have to complete fields distributed across the following five sections:

  1. General info
  2. Applicant info
  3. Background and experience (relevant to the product you seek)
  4. Collateral details
  5. Additional questions

Throughout the approval process, you have to submit several documents, including:

  • Credit report
  • Bank statements (for a U.S. bank account)
  • Identity proof for self or borrowing entity
  • Purchase contract
  • Mortgage contract (for refinance)
  • Scope of work and project budget 
  • Approved plans
  • Track record sheet
  • Contractors’ information
  • Property insurance docs
  • Lease agreement (if applicable)

Expect a trail of costs before closing—the following table compiles the estimates:

Cost ComponentEstimate*
Appraisal fee$500–$5,000 (commercial properties have higher charges)
Underwriting fee$1,500
Legal fee$750–$1,500
Feasibility and contractors’ reports$1,200
Draw fee (application for construction and flipping projects)$400

*The values may change over time at the lender’s discretion

RBI Private Lending Service Compared to Other Lenders

When compared to banks, RBI Private Lending is a more feasible option for securing investment or commercial real estate loans. Some of the stellar aspects include:

  • No minimum credit score requirement (in most cases)
  • Multiple loan packages
  • Friendly team (according to reviews)
  • Availability to foreign nationals (but at low LTV rates)
  • Website accessible in English and Spanish

Despite the positive factors, RBI Private Lending may not be the best option for hard money financing. The lender operates mainly in Florida, and the state has numerous other lenders who service your deals:

  • At lower cost—Dealing with non-traditional lenders should not lead to unnecessary costs like draw fees. If you’re looking for a cost-effective borrowing solution, we recommend getting quotes and fee estimates from other lenders as well
  • With lighter paperwork—The documentation requirements at RBI Private Lending can be called moderate at best, which slows down the process significantly. Ideally, asset-based lenders should close loans without the intrusive paperwork

If you desire supreme lending convenience for your next project, explore highly cost-efficient services with Hard Money Loan Solutions (HMLS)

Contact Hard Money Loan Solutions and Get That Deal DONE!

Investment in real estate can yield the best results when you have a proactive private lender like Hard Money Loan Solutions to tend to your unique financing needs. HMLS isn’t another commercial lender hungry for big profits—the Florida-based lending group provides tailor-made hard money loans to anyone, including people who:

  • Desire fast-closing loans (within 3–10 days)
  • Want a transparent and reasonable pricing structure
  • Dislike intrusive and tedious paperwork
  • Find it difficult to deal with traditional lenders
  • Are struggling to secure funds due to bad credit

HMLS real estate loans work for commercial, rental, residential, and business properties—both owner-occupied and non-owner-occupied. Reach out to an HMLS lender today and get approved for a program customized to your needs—you’re guaranteed the fairest rates and closing costs on the market. The group lends under the following scenarios:

  • Purchase
  • Refinance (including refinance with cash-out)
  • Construction
  • Rehab or property flipping
  • Temporary or bridge financing
  • Land development
  • Business acquisition
  • Investment
  • Short sale or foreclosure prevention

Source: Gustavo Fring

All HMLS programs are compliant with local, state, and federal laws. Check out the standard lending parameters below: 

Loan ComponentHMLS Parameters
Principal$100,000 to $50,000,000+
Eligible property• Single- or multi-unit home
• Condo
• Apartment
• Townhouse
• Any commercial or retail structure
• Special-purpose structure
Interest rate9.99%–12%
Interest typeFixed
Term1–3 years
Installment typeInterest only (no amortization)
LTV offeredUp to 70%
Closing3–14 days
Down paymentNot required
Origination fee2 points or 2%
Prepayment penaltyNo (if repaid after six months)

HMLS Embodies Transparency in Pricing and Processing

Many hard money lenders lure clients in with the promise of low rates but fail to honor them. Cash-strapped borrowers often end up committing to exorbitant interest rates because the lender categorizes the deal as complicated.

At HMLS, you’re always charged between 9.99% and 12%. The overall borrowing cost is free from charges like draw and transfer fees that bloat up your payables. Talk to an HMLS lender, and they’ll explain the straightforward fee components and payment points upfront.

Source: Google Reviews

HMLS has earned a 5-star rating because of its dedication to simplifying the processing logistics for clients. Every borrower, regardless of their credit or nationality status, enjoys a consistent lending framework. Your interest rate is determined according to the desired LTV, not your background. The group is backed by experienced lenders and successful entrepreneurs who develop innovative funding solutions even for tricky deals.

Besides assisting with funding, HMLS lenders also provide excellent area-specific consultancy to all applicants and clients free of cost. If they find your deal unserviceable, request alternative lender options, and they’ll do what they can to help you out.

Considering an HMLS Loan? Get a Quote Within a Day!

HMLS operates on the fundamental principle of hard money lending—which is to deliver funds at the earliest. The lenders can approve your loan and offer you customized quotes within a day. All you have to do is:

  1. Access the online loan application page
  2. Share basic details about you or the borrowing entity
  3. Enter the specifics about the collateral
  4. State the amount you need
  5. Submit the request

Your data is treated with the utmost confidentiality. HMLS lenders will call you with relevant details once they review your request. 

You pay a small retainer fee for legal processing only after you accept a loan offer. The group does not add any profit margin to additional costs as the group strives to bring the most competitive package to every client. You won’t have to worry about any junk or hidden fees down the line, either.

If you want more options to mull over, we got you—the following is a list of some other private lenders we’ve reviewed:

Featured image source: Mizuno K

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