Hard Money and Bridge Loan Benefits

Hard money investments are unique investment opportunities for Accredited Investors. If you make $200k+ per year, or a combined $300k+ per year with your spouse, then you are an Accredited Investor for 2025 and/or 2026.

You can also qualify with $1M+ of assets outside your personal homestead property. Some financial securities licenses may also qualify you; if you have one you probably know. 

• Monthly payments. One of the worst aspects of stock investing is that, unless you have a security that’s paying dividends, you must sell your stocks to realize any profits. Private mortgage lending on the other hand, provides stable, monthly, interest income.
• Stable value of investment. A mortgage investment is not subject to the volatilities of the stock market. Since these are loans with 25%+ equity, there’s room for market change long before it affects your investment principal. MidPoint Capital, LLC typically issues 1-year to 2-year loans, quite short-term for the real estate space.
• Research is done for you, and presented concisely. Local experts professionally evaluate the real estate behind the loan. MidPoint Capital, LLC and/or a 3rd party appraiser provides a value, we offer to lend the borrower up to 75% of that value, and a lender’s only job is to review the proposal details and fund the deal.
• No investment maintenance or ongoing research. Stock investors must keep their eyes on a lot of information to be successful. Timing can make or break a stock investment. Real estate mortgage investments require much less attention from their investors. The rate of return doesn’t change if the project is over-budget or sells for less than the borrower thought it would. A hard money investor is insulated from most of the risk.

• $200k + income for 2 years / reasonable expectation to earn the same this year.
• $300k + income with spouse for 2 years / reasonable expectation to earn the same this year.
• Individual net worth, or joint net worth with spouse, that is $1 million + with their primary residence excluded.
• Licenses such as Series 7, Series 65, and Series 82.

Low loan to value provides excellent security.

MidPoint Capital Partners, LLC will only lend up to 75% of a property’s value, so there’s 25%+ equity in every loan we make. We are also strictly funding investment properties, we do not lend on homesteads.

Let’s say a borrower owes MidPoint $750k on a $1M value property. They can’t make the payments any longer, and we post for foreclosure. Do you think they’re going to stand by and lose $250k of equity, or take a discount to sell it quickly to someone, before the foreclosure? It’s rare for borrowers to risk foreclosure when they have so much equity at stake.

MidPoint Capital Partners, LLC is also rather conservative when it comes to valuation.

In a word: time.

Whether you’re flipping, building, or even just land lording, there are time commitments that just don’t exist with hard money mortgage lending.

Lenders typically spend 10 to 20 minutes evaluating a hard money deal to decide if it’s a fit for them. After that, lenders are just collecting monthly interest payments until the end of the loan term or payoff. 

Direct investments in real estate mortgages have historically been limited to institutional investors.

Mortgage pools aka CDOs and CLOs (collateralized debt/loan obligations) and mortgage-backed securities are common, but those aren’t a direct 1:1 investment in an individual mortgage. Many CDOs and CLOs are also highly leveraged, with loans up to 95% LTV, and these loans were regularly made to borrowers with low credit and high debt.

Contact Us for more information about private mortgage lending. Diversifying your investments into private mortgage lending can open an incredible monthly income stream for accredited investors.

Passive investments with high security and consistent monthly income are ideal for investors that don’t have time or energy for the stock market game.