A Real-World Example of How Hard Money, When Used Strategically, Can Be the Smartest Move
At Hopkins Financial Services, we often help borrowers who don’t qualify for traditional bank financing — due to timing, property type, or credit issues. But sometimes, we help clients who do qualify… they just need a solution that conventional lenders can’t offer quickly enough.
This is the story of one of those times — and a perfect example of how hard money, when understood and used strategically, can be a powerful financial tool.
The Situation: Strong Borrowers, But Even Stronger Timing Constraints
We were approached by a highly bankable and experienced group of borrowers — successful operators with a growing portfolio of car wash facilities. They had a solid track record, institutional-level documentation, and great relationships with their conventional lenders.
But like many in today’s competitive environment, they encountered a challenge: a time-sensitive opportunity that their traditional bank couldn’t move fast enough to support.
They were under contract to acquire a new location — a valuable addition to their portfolio — and needed to close quickly to secure the deal. While they would likely be able to refinance with their bank in the near future, they needed a reliable and creative bridge solution now.
The Solution: 100% Financing, Secured by Additional Equity
At Hopkins, we evaluated the transaction and immediately recognized both the quality of the borrower and the viability of the deal.
Rather than require a large cash down payment, we structured a creative solution:
We funded 100% of the purchase price of the subject property — but required the borrowers to pledge equity from multiple other car wash assets they owned. This allowed us to achieve our desired overall loan-to-value (LTV) position, while eliminating the need for new capital out-of-pocket.
This flexible structure gave the borrowers what they needed most: speed and certainty — without compromising on their long-term financing goals.
The Outcome: Deal Closed, Equity Preserved, and Refinancing in Progress
The borrowers were able to:
Close on the property quickly
Retain cash reserves for operations and future growth
Avoid missing out on a strategic acquisition
Maintain their relationship with their bank (who they will look to refinance with once this new facility can meet the bank guidelines)
Yes — the loan carried a higher interest rate than a traditional bank loan. But the borrowers understood this from the beginning and recognized that the opportunity cost of losing the deal was far greater than the cost of short-term hard money financing.
Why It Matters: Hard Money Isn’t Just for “Desperate” Deals — It’s for Smart, Strategic Ones
This deal is a textbook example of how experienced borrowers can intentionally and intelligently use hard money to their advantage.
When the timing is tight, and the upside is clear, private financing from Hopkins can give borrowers the edge they need to execute — without the bureaucracy or delay of conventional channels.
Let’s Talk
If you’re navigating a fast-moving real estate opportunity, and need a lender who can think outside the box — and deliver fast, reliable funding — reach out. We’re here to help.
Contact Us (208-467-5467)
www.hopkinsfinancial.com
Hopkins Financial Services — Since 1984 | $1 Billion+ Funded
