Hard Money Loans for Short-Term Rentals in Louisiana

Frequently Asked Questions

What are hard money loans and how do they work for real estate investors?

Hard money loans are short-term, real estate-secured loans that emphasize the property’s value rather than the borrower’s credit profile. Investors in Louisiana use them to fund fix-and-flips, purchase short-term rentals, or refinance quickly. These loans typically offer 6 to 36-month terms, interest-only payments, and closings within 3 to 10 days. Because hard money lenders prioritize the investment’s potential over personal documentation, they’re ideal for deals that need to move fast. If a traditional mortgage is too slow or unavailable, hard money provides a reliable alternative.

When should an investor consider using a hard money loan instead of a conventional loan?

A hard money loan is a great option when you’re facing a tight timeline or financing a project that doesn’t qualify for a conventional loan. Louisiana investors often choose hard money for auction deals, distressed properties, or transactions through an LLC. If your income isn’t easy to document or your credit is less than perfect, hard money gives you the flexibility to proceed based on the deal’s strength. It’s a strategic tool when fast access to capital is more valuable than long-term financing.

What makes hard money different from other types of financing?

Hard money differs from conventional financing because it focuses on the property’s value and the borrower’s exit plan—not personal financial records. This makes the process faster and more flexible, especially for Louisiana investors who are self-employed, using creative deal structures, or purchasing unique properties. While interest rates are higher, hard money loans allow you to act quickly in competitive markets. They’re particularly useful when traditional lenders are too slow or unwilling to fund unconventional projects. It’s financing designed for investors, not homebuyers.

What are the typical loan terms for a hard money loan?

In Louisiana, hard money loans generally feature 6 to 36-month terms and interest-only payments. Most lenders offer up to 85% loan-to-value for purchases and 80% for refinances. Because these loans are asset-based, approval is fast and documentation requirements are minimal. Rates are higher than traditional loans, but the tradeoff is speed and flexibility. You can expect origination fees and potential reserves depending on the loan structure. These terms are ideal for short-term investments that require quick execution.

How quickly can a hard money lender close a deal?

Hard money lenders in Louisiana can usually close in 3 to 10 business days, making them much faster than traditional banks. This accelerated timeline is possible because underwriting is based on the asset, not the borrower’s financials. Investors benefit from quick closings when purchasing at auction, dealing with urgent sellers, or trying to beat competing offers. If time is critical to securing a deal or maximizing ROI, hard money loans offer the speed you need to act decisively in the Louisiana market.

Can I get a hard money loan in Louisiana with poor credit or no income documentation?

Yes. Many Louisiana real estate investors secure hard money loans with poor credit or limited income documentation. Since the loan is based on the property and investment strategy, traditional qualifications aren’t required. While Louisiana does regulate lending and enforce interest rate limits, most hard money loans are business-purpose and may be exempt from consumer restrictions. Always work with a licensed, transparent lender who understands Louisiana’s real estate landscape and can provide fair, compliant loan terms.

Explore hard money loans and other STR loans in neighboring states like Mississippi and Texas to grow your reach beyond Louisiana.