Hard Money Lending

Member since 2026 · 5 posts · 5 votes

Hi! Im in the process of getting in contact with different local lenders in the New Orleans area, but I have started to see a lot of ads popping up on my social media of different lenders... my question is: have any of you worked with lenders like Kiavi, Lima One Capital or similiar for hard money lending? How was your experience? Would you recommend any of them?

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Devin PetersonBusiness Member

Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 679 votes

5mo

They are all reputable lenders, but my best piece of advice is to sit down with an investor-focused broker or lender (actually a person who is also an investor - not just an originator or sales rep) and build a relationship. Brokers who wear the investor hat as well can connect you with different terms sheets you may have overlooked, being swamped by paid social media ads. Good luck!

[email protected]860-538-3672

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 679 votes
5mo
They are all reputable lenders, but my best piece of advice is to sit down with an investor-focused broker or lender (actually a person who is also an investor - not just an originator or sales rep) and build a relationship. Brokers who wear the investor hat as well can connect you with different terms sheets you may have overlooked, being swamped by paid social media ads. Good luck!
[email protected]860-538-3672
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
5mo
Agree with Devin. If this is your first deal also want to know which ones work with new investors
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AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 661 posts · 320 votes
5mo
I would add, you'll want to have a good ballpark on your 'buy box' because, as a broker/investor, I can tell you that Kiavi is going to struggle in New Orleans, and depending on what part of NO others like Lima will struggle as well.

Kiavi will struggle if the rehab gets too heavy and lenders like Lima will struggle if the total loan amount does not reach ~$100k. Depending on your experience and FICO, there are a handful of groups that will lend down there, but you might have to dig further than normal because there are a lot of national HM Lenders that don't like lending in NO based on flood zones and insurance costs.

I wish I had better insight, but the best suggestion is going to be based on what you buy the properties for and the amount of rehab they will need (along with experience and FICO)

Happy to connect and help if it would be helpful.

Good luck!
[email protected]417-427-2612
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Mike Klarman
Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
5mo
I've worked with them all and lots more. The lender is as good as the Loan Officer/Processor/Broker performs their job. As a first time through investor, it may take longer as you do not know the process and what is expected.
The most important factors are capital, credit, and experience. But with capital and Credit that should be enough.
I've closed in 3 weeks with Kiavi and I've closed in 6 weeks. I just closed two deals with Lima One. The first one took very long, the second was fast.
Why do deals take long?
Borrower delays: Borrowers owe docs or signatures and they just are not quick about it
Title: Sometimes there's issues with the title search results. Unexpected liens, no clear line of title, survey issues. When these pop up, it's out of your and the lender's control
Appraisal: Sometimes appraisers take their sweet old time getting the report in and then when it gets a lender review they have edits/updates they want from the appraiser before they ok it.
Insurance: Sometimes agents drag their feet or just do not listen to what exactly is needed and it takes some going back and forth to get right.
Lender: Sometimes the lender is doing a bad job for one reason or another: Under staffed, under capitalized, too much volume, or just plain old ignorance.
Any one of those can pop up and cause a delay and sometimes in nightmare deals multiple issues arise.
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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
5mo
I agree with all these notes from other contributors. The suggestion I have is the rehab part because if you are getting rehab money from these HML you need to know their process. You want to make sure that you do not get caught mid rehab getting 50% of what you thought you were getting due to the scope of work being off or something else tweaked that is not inline with the HML. The draws and the scope are so important to really hash out and have a solid understanding of on it, if not then you are stuck with either a lot of money out and no way to fund the rest of the project.. Or you end up getting delayed on pulling money.
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Richard Golding
Contractor · NYC/Los Angeles · Member since 2019 · 91 posts · 55 votes
5mo
Chasing national hard money advertisements on social media is a quick way to get buried in hidden fees and junk terms. Institutional giants like Kiavi and Lima One Capital are legitimate platforms but they operate on rigid corporate algorithms that do not understand the hyper local real estate dynamics of New Orleans.

The biggest operational hurdle you will face with big box national lenders in Orleans Parish is their blanket risk models regarding flood zones and historic building techniques. As an experienced broker pointed out in the thread national platforms frequently freeze up or slash their leverage the moment an appraisal notes a heavy foundation elevation or a high velocity hurricane zone insurance premium. A corporate underwriter sitting in California or North Carolina will look at a standard New Orleans structural layout and treat it like an existential risk premium which kills your processing timeline or forces you to bring more cash to the closing table.

You also have to look closely at how these national platforms manage their rehab draw schedules. If you are dealing with a heavy historic renovation a corporate lender will often utilize third party national inspection companies who do not understand local historic district guidelines. You can easily find your project velocity stalled for weeks waiting on a bureaucrat to approve a basic draw release for completed work.

Instead of dialing the number on a social media ad your sharpest move is to skip the corporate call centers and take your deal flow to local independent capital sources who actually walk the local dirt. You want a regional lender who understands the true after repair value of a shotgun double in Mid City or the Marigny without needing a third party algorithm to explain it. Local money closes faster has simpler draw verification processes and won't pull the rug out from under your deal over a specialized regional insurance line item.
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Mike Klarman
Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
5mo
As someone who has been on the front lines of 40+ rehab projects, I can tell you this as a 100% certainty: Working off draws for a contractor is hard. You are talking materials, labor costs, and then they are not working for free. The project is done is drips and drabs with 3 - 5 day stalls on the draw process. I've seen projects stretch into the 9 month - 12 month range because of the stop and start environment of draws.
To overcome that, you should have 50% of the budget that you can start the project with. Most projects need 15k in materials to start, more. And then the guys in the house working make anywhere from 100/day for the lowly cleanup guy or hard labor guy to 400/500 per day for skilled tradesman like drywall, paint, kitchen/bath remodel. So you are talking about 4k in labor per week?
If someone gave the contractor 10k to start, how could he get it done?
Most people blow most of their capital on the downpayment/closing and they forget you need another 25k min and up to the whole budget in reserves.
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Denise WebsterBusiness Member
Financial Advisor · Albuquerque, NM · Member since 2014 · 83 posts · 30 votes
5mo
Ivo, this is a good question, especially because hard money ads can make the process look much simpler than it actually is.

Devin gave good advice about working with someone who understands investing and not just loan origination. I would build on that by saying the lender name matters, but the loan structure matters more.

When comparing hard money lenders, I would not only ask, “Are they reputable?” I would ask:
- What loan-to-cost and loan-to-ARV will they actually offer?
- Are rehab funds advanced or reimbursed through draws?
- How fast are draw inspections completed?
- Are there minimum credit, liquidity, or experience requirements?
- What are the points, rate, processing fees, legal fees, and extension fees?
- Is there a prepayment penalty?
- What happens if the project runs past the original term?
- Will they allow a second lien or gap funding?
- Do they lend in the property’s specific market and asset type?
- What documentation do they require before issuing final terms?
A lot of investors focus on rate, but draw structure and extension terms can matter just as much on a rehab project.

For example, a lower-rate lender with slow draw reimbursements may create more pressure than a slightly higher-cost lender with cleaner execution.

Before choosing any lender, I would prepare the deal package first:
- purchase price
- rehab budget
- scope of work
- contractor plan
- ARV support
- timeline
- exit strategy
- borrower contribution
- liquidity after closing
That will help you compare lenders based on actual terms instead of general advertising claims.
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Frankie VozziBusiness Member
Member since 2025 · 392 posts · 99 votes
5mo
I’ve seen investors have mixed experiences with the larger national lenders honestly. A lot depends on: deal complexity, timeline, how experienced the borrower is, how clean the exit strategy looks, Some people have smooth closings, others get frustrated with underwriting delays or draw processes.

The biggest thing I’d focus on is responsiveness and certainty of execution, especially on flips. What kind of projects are you planning to use hard money for in New Orleans?

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Darren KurilkoPro Member
Lender · Venice, FL · Member since 2025 · 27 posts · 1 vote
4mo
Hi Ivo. The big national lenders like Kiavi and Lima One are great for scalability and have very streamlined tech platforms. However, they operate in a rigid "box." If your deal fits their exact parameters, they are fast and relatively cheap.The advantage of a local or regional private/hard money lender is flexibility. A local lender knows the New Orleans market, understands neighborhood-by-neighborhood nuances...
For your first few deals, having a lender you can actually get on the phone to work through a problem is incredibly valuable. I'd suggest getting term sheets from both a national player and a local/regional lender to compare.
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Raymond Duplessis
Lender · Princeton, NJ · Member since 2026 · 24 posts · 7 votes
4mo
I think the biggest thing is to compare lenders by the actual structure of the loan, not just the name or the ad.

Kiavi, Lima One, and similar national private lenders can be good options depending on the deal, but I would pay close attention to things like:
- Loan-to-cost vs. loan-to-ARV
- How much of the rehab they fund
- Whether the rehab funds are reimbursed through draws
- Draw speed and inspection process
- Points, processing fees, extension fees, and prepayment penalties
- How quickly they can realistically close
- Whether they lend in your specific market and property type
A lot of lenders advertise aggressive terms, but the actual quote can change depending on experience, credit, liquidity, property condition, ARV, and exit strategy.

I’d also speak with both local lenders and national lenders. Local lenders may know the New Orleans market better, while national lenders may have more standardized programs and broader product options.

I work with real estate investors on fix and flip, bridge, DSCR, and ground-up loans, so I'd be happy to compare numbers or give you another option to benchmark against the quotes you're getting.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3w
Kiavi and Lima One are hit or miss. It will come down to your account executive. I have worked with Kiavi and Lima One on the broker-side and my personal experience was not so great. They are very black and white, so if you have a scenario that needs a bit of structuring they will not be the best. They really emphasize your personal credit and if their automated credit grading/property valuation tool does not like your credit and don't feel the property's ARV works for the deal, they will kill it.
There are many lenders here on BP that can help. Many with good reviews and solid experience in the field.
[email protected]818-269-7983
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