Hard money loans are a vital tool for real estate investors, offering fast, flexible funding for fix-and-flip or buy-and-hold projects. However, not every borrower qualifies for these loans. Lenders like CCL (Coastal Capital Lending) carefully evaluate applicants to ensure they have the experience, financial stability, and project readiness needed to succeed. Here are five key traits CCL looks for in borrowers—and how you can position yourself for approval.
1. Proven Real Estate Experience
Experience is a cornerstone of hard money lending approval. CCL exclusively works with borrowers who have a track record of at least two successful real estate deals in the past 18–24 months. This demonstrates that you understand the challenges of property investment, from budgeting to managing contractors and timelines.
To prove your experience, be prepared to provide HUDs or other closing documents from past projects. Highlighting successful outcomes—whether a profitable flip or a stabilized rental property—instills confidence in the lender. For seasoned borrowers, CCL’s VIP program offers even better terms after completing two successful loans, making repeat business even more rewarding.
2. Financial Stability
While traditional credit scores aren’t a factor, financial stability is crucial. CCL requires three months of your entity’s bank statements to ensure you can comfortably afford the monthly interest payments on your loan. This reassures the lender that you have the financial resources to handle your project without unnecessary strain.
Additionally, borrowers must contribute 10% of the property’s purchase price. This equity shows you have a vested interest in the success of the project. For the rehab portion, 100% of the costs are covered by CCL, but funds are disbursed via reimbursement after verification of completed work. Being prepared to front these costs demonstrates your commitment and readiness to see the project through.
3. Preparedness and Documentation
Low-documentation loans don’t mean no documentation. CCL focuses on the essentials, such as proof of your entity’s legitimacy (articles of organization, operating agreement, and business license) and project-specific documents like the scope of work and property insurance.
Having these documents organized and ready to present shows that you’re serious about your project and understand the importance of clear communication. A well-prepared application not only speeds up the approval process but also establishes you as a reliable partner in the lending relationship.
4. Strong Project Viability
Lenders want to ensure your project has a high likelihood of success. CCL evaluates the feasibility of your after-repair value (ARV) estimate through third-party broker price opinions (BPOs). Your scope of work also plays a critical role in demonstrating that you’ve thought through the rehab process in detail, from costs to timelines.
A clear and realistic plan reflects your professionalism and ability to execute. Borrowers who can confidently outline their project’s profitability are more likely to gain approval—and access to future funding opportunities.
5. Communication and Professionalism
While technical qualifications are essential, soft skills like clear communication and professionalism can set you apart, especially when aiming for VIP borrower status. CCL values borrowers who are transparent, responsive, and proactive in addressing potential issues. Strong communication builds trust and ensures a smooth process, from initial application to loan repayment.
At Coastal Capital Lending, we’re invested in your success because your wins are our wins. We understand that real estate projects can encounter unexpected challenges, and we pride ourselves on being a partner that’s willing to work with you to overcome them. Whether it’s helping to clarify documentation requirements, addressing project roadblocks, or strategizing solutions, we’re here to support you. Borrowers who foster this collaborative relationship not only qualify for better terms but also position themselves as long-term partners in the lending process.
Position Yourself for Success
Securing a hard money loan from CCL requires more than just a promising property—it requires demonstrating that you have the experience, financial stability, and professionalism to see the project through. By focusing on these five key traits, you can strengthen your application and set the stage for a successful lending relationship.
Whether you’re a seasoned investor or looking to scale your business, meeting these criteria ensures you’re not just approved but positioned for success. With Coastal Capital Lending’s flexible terms, streamlined process, and potential for VIP status, your next real estate project is within reach.
