Hard money lending in 2024

Hard money is absolutely critical in today’s economy to keep pace with building and acquisition demand while providing an alternative funding tool. Throughout the Southern Nevada markets this has never been more important as builders and developers continue to do their part in providing infrastructure growth to keep pace with demand. As the exodus from California continues, Nevada remains in third position behind Texas and Arizona in population growth and capturing these fleeing residents. The breakneck pace of 55,000-plus new residents per year from just one state has presented a formidable challenge, yet Nevada presses ahead — adding professional sports franchises, hosting Formula 1 and the Super Bowl, and building everything from luxury condominiums to luxury single-family homes.

While traditional funding sources such as banks and credit unions remain the benchmark of traditional lending, hard money is used for a variety of reasons such as expediting a purchase, sudden loss of funding, and investment properties such as raw land, manufactured housing or commercial projects, which banks shy away from. Rising interest rates have continued to make hard money even more attractive because of an ultra-conservative outlook from those aforementioned “traditional” lenders.

Capella Mortgage, NMLS #372157, has been serving the needs of borrowers in Nevada and the Southwest U.S for more than 22 years. The purpose of Capella is clearly defined and threefold: first, serve the borrowers so they’ll feel comfortable and return; second, provide the private investors with a competitive return on investment so they’ll return; third, have both leadership and support staff who act as extended family yielding long-term retention. This model has proven to be scalable and Capella is now reaching new levels of lending at approximately $100 million per year. Thus far, Capella has relied solely on private capital from individual investors to fund each and every deal. Whether it’s a small parcel of land in Henderson; a hotel in the Arts District of Las Vegas; or single family investment properties in central Florida, they continue to expand the footprint of Capella.

What has changed in the past 12 to 24 months in the concentrated space of hard money?

The short answer for Capella Mortgage is slightly higher rates to borrowers, and slightly adjusted (ascending) rates to investors and higher loan amounts. Put simply, when Fed Chairman Jerome Powell opts to raise rates, hard money must follow suit. Investors are always shopping for lower loan to values, shorter terms (12 to 36 months), and proximity to urban areas. A current snapshot of Capella’s return on investment from third quarter of 2023 shows a median return on investment of 11.56 percent. This number represents July to September of 2023 and yields can increase or decrease based on the current interest rate, deal offerings and a multitude of other factors. From the borrower’s perspective hard money has become slightly more expensive, however, most deals are still hovering around the 12 percent to 14 percent historical average. Since Capella only requires a three-month interest guarantee, many borrowers refinance into a traditional loan rather quickly. The volume of construction lending, land development and parcel assemblages has picked up considerably over the past 24 months and Capella continues to service those proven borrowers who need this void filled.

Capella has maintained a steadfast focus on the Nevada market since its inception. Additionally, it has identified secondary markets such as Texas, Arizona, Colorado, Idaho and California. In recent times, the Southeastern United States, particularly Florida, Georgia, Alabama and Tennessee, has gained prominence as a strategic area of interest for Capella.

As a family-owned enterprise, Capella boasts an impressive average staff tenure of more than 10 years. While renowned for its adeptness in closing high-quality emergency loans on short notice, Capella’s recent expansion, marked by the addition of a paralegal and another processor, has significantly bolstered its capacity to handle larger transactions with heightened scrutiny.

Capella’s operational infrastructure has long been characterized by cutting-edge technology. Recent advancements in fraud detection, coupled with the wealth of experience accumulated over two decades in the industry, have empowered Capella and its dedicated team to discerningly navigate away from dubious deals, ensuring the preservation of its sterling reputation.

Chris Bennett is the director of client relations for Capella Mortgage Corp. To learn more about investing in hard money, call 725-201-0502 or email To explore borrowing options, reach out to Matthew Dale, NMLS #1078402, at 725-201-0321 or Capella Mortgage Corp., Equal Housing Lender, NMLS #372157, 3765 E Sunset Road Ste B2,

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