Hard Loan Returns
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the quick-sale value of the property for which the loan is made. Our hard money loans are used for loans lasting from 3 to 12 months. Our hard money borrower qualify for a loan amount based on the value of the real estate being collateralized. Typically, the biggest loan the borrower can expect will be between 60% and 70% of the property value.
Contact Nongkran to hear more.
Here you can see your yearly return and your monthly return for loans shorter than 1 year.
The more you invest the higher return you get, because the work involved and our expenses are basically the same for small loans as they are for larger ones. So therefore a higher % return for larger investments.
We have to receive all capital in our account in Thai Baht, and the investment and return will also be paid back in Thai Baht to a Bank of your choosing. It is often a good idea to send to our bank account in your own currency and let our bank do the exchange. What is received in our account after the bank have taken its exchange charge is what you have available to loan out.
You will first start to receive these monthly returns from the first month after the money is loaned to a borrower.
While the money stays in our account waiting for a borrower, there will only be a 2% yearly return on the money.
Contact Nongkran to hear more.
Here you can see your yearly return and your monthly return for loans shorter than 1 year.
The more you invest the higher return you get, because the work involved and our expenses are basically the same for small loans as they are for larger ones. So therefore a higher % return for larger investments.
We have to receive all capital in our account in Thai Baht, and the investment and return will also be paid back in Thai Baht to a Bank of your choosing. It is often a good idea to send to our bank account in your own currency and let our bank do the exchange. What is received in our account after the bank have taken its exchange charge is what you have available to loan out.
You will first start to receive these monthly returns from the first month after the money is loaned to a borrower.
While the money stays in our account waiting for a borrower, there will only be a 2% yearly return on the money.
Total THB hardloan investment |
Effective interest in THB Total per year |
Effective yearly interest in % after expenses |
Effective return in % per month |
Effective return in THB per month |
1000000 |
100000 |
10 |
0.833 |
8333 |
2000000 |
210000 |
10.5 |
0.875 |
17500 |
3000000 |
330000 |
11 |
0.917 |
27500 |
4000000 |
460000 |
11.5 |
0.958 |
38333 |
5000000 |
600000 |
12 |
1.000 |
50000 |
6000000 |
750000 |
12.5 |
1.042 |
62500 |
7000000 |
910000 |
13 |
1.083 |
75833 |
8000000 |
1080000 |
13.5 |
1.125 |
90000 |
9000000 |
1260000 |
14 |
1.167 |
105000 |
10000000 |
1450000 |
14.5 |
1.208 |
120833 |
11000000 |
1650000 |
15 |
1.250 |
137500 |
12000000 |
1860000 |
15.5 |
1.292 |
155000 |
13000000 |
2080000 |
16 |
1.333 |
173333 |
14000000 |
2310000 |
16.5 |
1.375 |
192500 |
15000000 |
2550000 |
17 |
1.417 |
212500 |
16000000 |
2800000 |
17.5 |
1.458 |
233333 |
17000000 |
3060000 |
18 |
1.500 |
255000 |
18000000 |
3240000 |
18 |
1.500 |
270000 |
19000000 |
3420000 |
18 |
1.500 |
285000 |
20000000 |
3600000 |
18 |
1.500 |
300000 |
Amounts higher than 20 mill. Baht will have a monthly return of 1.5% or 18% yearly return while borrowed out and 2% yearly return while staying our deposit bank account.
What happens if the borrower defaults on his loan
If the borrower cannot pay the loan on agreed time, but are willing and able to still pay the monthly interest in full, you as the lender can choose to allow him to continue this way for as many month as you want.
If you choose to call in the loan, the loan amount which is based on the value of the real estate being collateralized, will not be much more than 70% of the property value, as the borrower has paid the monthly interest until the default date. We will put up the real estate for sale at the full value or more of the property for which the loan was made. If the real estate is sold at full value or more, there should be a minimum of 25-30% remaining after you as the lender have received full remuneration, including interest until the sales date.
What happens to this remaining amount depends on how the borrower have acted.
What happens if the borrower defaults on his loan
If the borrower cannot pay the loan on agreed time, but are willing and able to still pay the monthly interest in full, you as the lender can choose to allow him to continue this way for as many month as you want.
If you choose to call in the loan, the loan amount which is based on the value of the real estate being collateralized, will not be much more than 70% of the property value, as the borrower has paid the monthly interest until the default date. We will put up the real estate for sale at the full value or more of the property for which the loan was made. If the real estate is sold at full value or more, there should be a minimum of 25-30% remaining after you as the lender have received full remuneration, including interest until the sales date.
What happens to this remaining amount depends on how the borrower have acted.
- If we deem that the borrower has done his utmost to pay the loan back but failed anyway, he will receive 1/3 of the remaining amount, and you as the lender will also receive 1/3 of this amount. The remaining 1/3 will go to us for having arranged the sale of the guaranteed real estate.
- If we deem that the borrower has not done his utmost to pay the loan back, he will not receive anything from the remaining amount, and you as the lender will receive half of this amount. The remaining half will go to us for having arranged the sale of the guaranteed real estate.