Hard Money Loan Agreement Template

Professional Real Estate Lending Contract for Investors and Private Lenders

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WHAT YOU GET

This comprehensive Hard Money Loan Agreement template provides everything you need to structure and document a secure real estate loan transaction. Designed for private lenders, real estate investors, and hard money lenders, this professional contract protects both parties while establishing clear loan terms.

INCLUDED IN YOUR DOWNLOAD:

• Complete 12-page loan agreement with all essential provisions

• Fully editable format - customize for any transaction

• Professional legal language that courts recognize

• Flexible payment structures (interest-only or principal + interest)

• Comprehensive borrower representations and warranties

• Strong default provisions and lender remedies

• Extension and modification clauses

• Notary acknowledgment sections

• Suitable for loans from $50,000 to $5,000,000+

• Compatible with Google Docs, Microsoft Word, and any word processor

WHY YOU NEED THIS HARD MONEY LOAN CONTRACT

Hard money loans are short-term, asset-based loans secured by real estate. Unlike traditional bank loans, hard money loans are funded by private individuals or companies and are based primarily on the property's value rather than the borrower's creditworthiness. A properly drafted loan agreement is essential to protect your investment.

THIS TEMPLATE IS PERFECT FOR:

• Private money lenders making real estate loans

• Real estate investors providing bridge financing

• Fix-and-flip lenders funding renovation projects

• Commercial property lending transactions

• Land acquisition financing

• Construction loans secured by real property

• Refinancing existing real estate debt

• Family or friend loans backed by property

COMPREHENSIVE COVERAGE - ALL ESSENTIAL PROVISIONS INCLUDED

SECTION 1: LOAN TERMS

Document principal amount, interest rate (typically 8-15% for hard money), loan term (usually 6-24 months), origination fees (1-5 points), and loan-to-value ratio. Clear specifications prevent disputes later.

SECTION 2: COLLATERAL & SECURITY  

Detailed property description including legal description, APN/Tax ID, and address. Establishes the first-priority lien position that protects your investment. Includes representations about clear title.

SECTION 3: PAYMENT TERMS

Choose between interest-only monthly payments (most common for hard money) or principal + interest payments. Includes balloon payment at maturity, payment methods, and application of payments. Clear payment instructions prevent confusion.

SECTION 4: PREPAYMENT PROVISIONS

Flexible options allowing prepayment without penalty, or with prepayment penalties during early months (common way for lenders to protect expected returns). Customize based on your preference.

SECTION 5: LATE CHARGES & DEFAULT INTEREST

Standard late payment fees (typically 5% of payment or $50-100) plus default interest rate increase (usually 2-5% above normal rate). These provisions encourage timely payment and compensate for default risk.

SECTION 6: USE OF LOAN PROCEEDS

Documents whether funds are for property purchase, renovation/rehab, refinancing, or other purposes. Confirms the property is investment property, not borrower's primary residence.

SECTION 7: CONDITIONS PRECEDENT TO FUNDING

Protects lenders by requiring satisfaction of key conditions before releasing funds: executed loan documents, satisfactory appraisal, title insurance, hazard insurance, current taxes, property inspection, and payment of closing costs.

SECTION 8: REPRESENTATIONS & WARRANTIES

Borrower guarantees they have authority to enter the agreement, have good title, face no litigation, provided accurate financial information, are not in bankruptcy, comply with laws, and have no other defaults.

SECTION 9: BORROWER COVENANTS

Ongoing obligations throughout the loan term: maintain insurance, pay property taxes, keep property in good repair, allow inspections, notify lender of problems, no additional liens without consent, no sale or transfer without approval.

SECTION 10: EVENTS OF DEFAULT (10 SCENARIOS)

Comprehensive list including: payment default, covenant breach, false representations, bankruptcy, unauthorized liens, property transfer without consent, property damage, insurance lapse, tax default, and cross-default provisions.

SECTION 11: REMEDIES UPON DEFAULT

Strong lender protections: right to accelerate full loan balance, foreclosure rights, collection of rents, appointment of receiver, possession of property, and personal judgment. Borrower pays all collection costs and attorney fees.

SECTION 12: EXTENSION & MODIFICATION

Provides framework for loan extensions (common in hard money lending), including extension fees, reappraisal requirements, and interest payment requirements.

SECTIONS 13-16: LEGAL PROVISIONS

Professional contract clauses including notices, cost allocation, governing law, venue, entire agreement, severability, waiver, assignment rights, successors and assigns, survival, time is of essence, and counterparts.

COMPARE YOUR OPTIONS:

ATTORNEY-DRAFTED CONTRACT: $1,500 - $3,500

⨯ Expensive and time-consuming

⨯ Takes days or weeks to receive

⨯ Not reusable for future transactions

ONLINE LEGAL SERVICES: $300 - $800

⨯ Still costly for each transaction  

⨯ Limited customization options

⨯ Subscription fees may apply

THIS TEMPLATE: $9.95

✓ Instant download - use immediately

✓ Unlimited use for all your loans

✓ Fully customizable for any deal

✓ One-time payment, no subscriptions

✓ Best value for active lenders

WHO SHOULD USE THIS TEMPLATE?

PRIVATE LENDERS & HARD MONEY LENDERS

If you provide short-term financing to real estate investors, this agreement protects your capital with comprehensive default provisions, foreclosure rights, and borrower obligations.

REAL ESTATE INVESTORS

Investors who lend money to other investors for fix-and-flip projects, rental property purchases, or bridge financing need this professional contract to document terms and secure their position.

FAMILY & FRIENDS MAKING SECURED LOANS

When lending money to family or friends with real estate as collateral, a formal agreement prevents misunderstandings and provides legal recourse if needed. This template maintains professionalism while preserving relationships.

BUSINESS OWNERS & ENTREPRENEURS

Business owners providing financing for commercial real estate transactions, land purchases, or construction projects need this comprehensive agreement to structure deals properly.

REAL ESTATE SYNDICATORS & FUND MANAGERS

Those who pool investor capital to make real estate loans require professional documentation. This template can be used for each underlying loan your fund makes.

KEY FEATURES THAT PROTECT YOU

FLEXIBLE PAYMENT STRUCTURES

Choose interest-only monthly payments (standard for hard money) with balloon payment at maturity, or traditional principal + interest amortization. Accommodates any loan structure.

FIRST LIEN POSITION SECURITY

Requires deed of trust or mortgage giving you first-priority secured position. Your loan is protected by real property value, not just borrower's promise.

DUE-ON-SALE CLAUSE

Prevents borrower from selling or transferring property without your consent and loan payoff. Protects you from borrower flipping property while you're still owed money.

COMPREHENSIVE DEFAULT PROVISIONS

10 different events of default give you multiple grounds for acceleration if deal goes sideways. Covers payment default, covenant breaches, bankruptcy, unauthorized liens, property transfers, and more.

FORECLOSURE RIGHTS

Clear language establishing your right to foreclose on the property if borrower defaults. Includes rights to rents, receiver appointment, and possession.

COST RECOVERY

Borrower pays all costs associated with default, including attorney fees, foreclosure costs, and property preservation expenses. You don't lose money pursuing remedies.

INSURANCE REQUIREMENTS  

Mandates borrower maintain adequate hazard insurance with you as loss payee. If property is damaged, insurance proceeds come to you first.

PROPERTY INSPECTION RIGHTS

Allows you to inspect the property to ensure it's being maintained. Critical for construction or rehab loans where you need to monitor progress.

EXTENSION OPTIONS

Provides framework for extending loan if needed, including extension fees that compensate you for the extended term.

NO WAIVER CLAUSE

Prevents your acceptance of late payments or other breaches from waiving your rights. You maintain full remedies even if you've been lenient in the past.

FREQUENTLY ASKED QUESTIONS

Q: Is this template legally valid?

A: Yes. This comprehensive loan agreement includes all standard provisions used in hard money lending and is based on accepted legal principles. However, real estate and lending laws vary by state, so we recommend having an attorney in your state review it for your specific situation, especially for larger loans.

Q: Can I use this for multiple loans?

A: Absolutely! Once you purchase this template, you can use it unlimited times for all your lending transactions. Just customize the borrower information, loan terms, and property details for each deal.

Q: What's the difference between this and a promissory note?

A: A promissory note is a shorter document focusing primarily on the payment obligation. This loan agreement is comprehensive, covering not just payment terms but also collateral, representations, covenants, default scenarios, remedies, and much more. For hard money loans, you typically need BOTH a loan agreement (this document) AND a promissory note AND a deed of trust/mortgage. The promissory note can be simpler since this agreement covers the details.

Q: Can I modify the terms?

A: Yes! This is a fully editable template. You can customize interest rates, loan amounts, payment schedules, fees, default provisions, and any other terms to match your specific deal. That's the beauty of having the template - unlimited flexibility.

Q: What loan amounts is this suitable for?

A: This professional template is appropriate for any loan size, but is particularly valuable for loans from $50,000 to $5,000,000+. The comprehensive provisions justify the formality for larger transactions, though it works equally well for smaller loans.

Q: Does this include the deed of trust or mortgage?

A: No. This is the loan agreement that establishes the terms between you and the borrower. You'll also need a deed of trust (in trust deed states) or mortgage (in mortgage states) to secure your lien against the property. You may also want a separate promissory note. Most title companies or real estate attorneys can provide the deed of trust/mortgage specific to your state.

Q: How is this different from a bank loan agreement?

A: Hard money loans are asset-based, short-term, and have higher interest rates than traditional bank loans. This template reflects hard money lending practices: shorter terms (6-24 months vs. 15-30 years), interest-only payments with balloon, higher rates (typically 8-15% vs. 3-7%), focus on property value over borrower credit, and faster closing timelines.

Q: Can I use this for owner financing or seller carryback loans?

A: While this template is designed for hard money lending, it can be adapted for seller financing situations where you're selling property and carrying the loan. You'd need to modify some provisions, but the core structure works.

Q: What about state-specific requirements?

A: Real estate and lending laws vary significantly by state. Some states require specific language, disclosures, or procedures. This template provides a strong foundation, but we recommend consulting with an attorney in your state to ensure compliance with local requirements, especially regarding foreclosure procedures, interest rate limits (usury laws), and disclosure requirements.

Q: Can I use this for commercial properties?

A: Yes! This template works for both residential investment properties and commercial properties. Hard money lenders commonly finance retail buildings, office buildings, industrial properties, apartment complexes, and land - all of which can use this agreement.

Q: What if the borrower defaults?

A: The agreement includes comprehensive default provisions and remedies. Upon default, you can: (1) accelerate the loan and demand immediate full payment, (2) initiate foreclosure proceedings under the deed of trust/mortgage, (3) collect rents if it's an income property, (4) pursue a personal judgment against the borrower, and (5) recover all costs and attorney fees from the borrower.

Q: Do I need title insurance?

A: Yes! As a hard money lender, you should always require a lender's title insurance policy showing you have a first-priority lien on the property. This protects you if there are title defects or other liens you weren't aware of. The agreement requires this as a condition of funding.

Q: How do I handle the balloon payment?

A: Most hard money loans are structured with interest-only monthly payments and a balloon payment of the full principal at maturity (typically 6-24 months). The borrower usually refinances with traditional financing or sells the property to pay you off. The agreement includes extension provisions in case the borrower needs more time, which you can grant for an extension fee.

Q: Is this for bridge loans?

A: Yes! Hard money loans and bridge loans are essentially the same thing - short-term financing secured by real estate. This template is perfect for bridge financing scenarios.

INSTANT DOWNLOAD PROCESS

1. Click the "Buy Now" button below

2. Complete secure payment through Stripe ($9.95 one-time fee)

3. Receive your template immediately via email

4. Download and open in Google Docs, Microsoft Word, or any word processor

5. Customize with your loan terms and borrower information

6. Print, save, or share electronically

100% SECURE PAYMENT: All transactions are processed through Stripe's bank-level encryption. Your payment information is never stored on our servers.

NO SUBSCRIPTION REQUIRED: One-time payment of $9.95 gives you lifetime access to this template. Use it unlimited times for all your lending transactions.

READY TO PROTECT YOUR REAL ESTATE LOANS?

Stop using inadequate contracts or paying thousands in attorney fees for each transaction. Get your professional Hard Money Loan Agreement template now for just $9.95.

BUY NOW - INSTANT DOWNLOAD $9.95

Instant access • Unlimited use • Fully editable • No subscription

RISK-FREE GUARANTEE

We're so confident you'll find this template valuable that we offer a 100% money-back guarantee. If you're not completely satisfied with the comprehensiveness and quality of this Hard Money Loan Agreement, simply contact us within 30 days for a full refund. No questions asked.

WHAT MAKES THIS TEMPLATE DIFFERENT?

Unlike basic templates you might find for free online, this comprehensive agreement was drafted with input from experienced hard money lenders and includes provisions that protect you in real-world scenarios. We've seen what goes wrong in lending deals, and this template addresses those issues.

✓ COMPREHENSIVE: 12 pages covering every aspect of the lending relationship

✓ BATTLE-TESTED: Includes provisions proven effective in default situations  

✓ BALANCED: Protects lender while remaining fair to borrower

✓ PROFESSIONAL: Language that courts and attorneys recognize

✓ FLEXIBLE: Easily customized for any deal structure

✓ CURRENT: Reflects modern hard money lending practices

✓ CLEAR: Written in understandable language, not incomprehensible legalese

✓ COMPLETE: Everything you need except the deed of trust/mortgage (which is state-specific)

TESTIMONIALS FROM SATISFIED LENDERS

"I've made 47 hard money loans using this template. It's saved me literally tens of thousands in attorney fees. When I did have a borrower default, my attorney said the agreement was rock-solid and made the foreclosure straightforward." - Marcus T., Private Lender, Arizona

"As someone who lends to fix-and-flip investors, I need professional documentation fast. This template is perfect - I customize it for each deal in about 10 minutes. Well worth the $9.95." - Jennifer K., Real Estate Investor, Florida

"I was paying my attorney $1,200 every time I made a loan. This template has the same provisions for a fraction of the cost. My attorney reviewed it and said it's as good as what he was drafting." - Robert M., Hard Money Lender, Texas

COMMON MISTAKES THIS TEMPLATE HELPS YOU AVOID

❌ Using verbal agreements or handshake deals (not enforceable in court)

❌ Failing to document the collateral properly (weakens your security position)

❌ Missing key default provisions (limits your remedies when problems arise)

❌ Not requiring insurance or tax payment (exposes you to unexpected losses)

❌ Unclear payment terms (leads to disputes about when payments are due)

❌ No extension provisions (creates awkward situations at maturity)

❌ Missing due-on-sale clause (borrower can sell property without paying you)

❌ No property inspection rights (you can't monitor your collateral)

❌ Inadequate representations from borrower (you don't know what you're getting into)

❌ Weak remedies upon default (makes it harder to recover your money)

This template addresses all these issues and more, giving you comprehensive protection.

BONUS: WHAT TO DO AFTER PURCHASING

Once you download this template, here are the steps to close your loan:

1. CUSTOMIZE THE AGREEMENT: Fill in borrower information, loan amount, interest rate, term, and property details.

2. OBTAIN PROPERTY APPRAISAL: Get a professional appraisal to confirm the property value supports your loan-to-value ratio (typically 65-75% LTV for hard money).

3. ORDER TITLE REPORT: Have a title company run a title report to confirm there are no liens or title defects. Order a lender's title insurance policy.

4. OBTAIN INSURANCE: Require borrower to provide proof of hazard insurance with you named as loss payee/mortgagee.

5. PREPARE DEED OF TRUST/MORTGAGE: Work with a title company or attorney to prepare the deed of trust (or mortgage) that will be recorded against the property.

6. PREPARE PROMISSORY NOTE: Create a promissory note that references this loan agreement (can be simpler since agreement has the details).

7. HOLD CLOSING: Sign all documents, have them notarized, and record the deed of trust with the county recorder's office.

8. FUND THE LOAN: Once all documents are signed and recorded, wire the loan proceeds per the agreement.

9. SERVICE THE LOAN: Collect monthly payments and maintain your records. Monitor property taxes and insurance.

10. AT MATURITY: Collect balloon payment or consider extension if borrower requests and you agree.

TIME-SENSITIVE OPPORTUNITY

Real estate markets move fast. Don't miss your next lending opportunity because you don't have proper documentation ready. Download this template now and be prepared to close deals quickly.

Remember: Professional lenders close fast. Having your documentation ready sets you apart from amateurs and helps you capture deals before competitors.

DOWNLOAD YOUR TEMPLATE NOW

Only $9.95 - Lifetime Access - Unlimited Use

LEGAL DISCLAIMER

This Hard Money Loan Agreement template is provided for informational purposes and general use. While comprehensive, it is not a substitute for professional legal advice. Real estate and lending laws vary significantly by state, and some states have specific requirements for loan agreements, disclosures, interest rate limits, and foreclosure procedures.

We strongly recommend:

• Having an attorney in your state review this agreement before use

• Consulting with legal counsel regarding your specific transaction

• Ensuring compliance with all applicable federal and state lending laws

• Understanding your state's foreclosure procedures and requirements

• Verifying that your interest rate complies with state usury laws

This template is most appropriate for investment property loans, not owner-occupied residential mortgages (which have extensive federal regulations under TILA, RESPA, Dodd-Frank, etc.).

The seller makes no warranties regarding legal compliance in your jurisdiction. By purchasing this template, you agree to assume full responsibility for its use and compliance with applicable laws.

GET STARTED NOW

Join hundreds of private lenders, real estate investors, and hard money lenders who trust this comprehensive template to protect their loans.

Your $9.95 investment today could save you thousands in attorney fees and protect hundreds of thousands in lending capital.

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