In our current economy, hard money commercial lenders that have the ability to loan money are making a killing with much less risk. Because the banks have tightened up their credit policies, many good loans that were bankable are being sent to hard money lenders. Those hard money lenders are cherry picking the best of these deals making the same origination fees and interest rates they used to on higher risk loans. This has changed the dynamics of hard money lending.
Instead of getting aggressive LTV's on real estate and other assets, hard money loans seem to have conventional requirements. Lenders desire 15-25% equity down toward the purchase price of real estate. We have had several loan requests for 100% financing on real estate purchases. Although the LTV may be 50 or 60% on an REO package of real estate, hard money lenders are more interested in what skin borrowers have in the game. This was not the traditional way of hard money lenders.
As a professional broker, we find it difficult to acquire hard money lenders that actually fulfill their commitments. It takes a lot of sifting to find those lenders who are capable of doing loans. For every 10 companies that say they issue hard money loans, 1 of them actually will. Make sure you are careful as you dive into this credit market. It is a "buyer beware" market.