Hard Money Lending: The Real Deal for Utah Real Estate Investors
By Corey Dutton, Founder of High West Lending & Private Money Utah
Look, Let’s Cut Through the BS
You found a property. It’s a good deal. Maybe even a great deal. But the bank? They’re playing games with you, aren’t they? Welcome to 2025, where traditional lenders have basically told real estate investors to take a hike.
I’m Corey Dutton, a Utah private money lender with Private Money Utah and High West Lending. I’ve been in the hard money loan game in Utah long enough to see every excuse banks throw at real estate investors for not approving their loans. Here’s the straight truth about why traditional financing is broken, and how hard money loans can actually get you where you need to go.
Why Banks Are Killing Your Real Estate Deals Right Now
Let me be blunt – banks don’t want to lend to real estate investors anymore. Period. Here’s why:
Interest Rates Are Still Higher:
At the time this article is being written, the prime rate is 7.25%. And the interest rate matters whether you’re flipping houses, or buying rentals in the Utah market. When interest rates were below 5%, buyers were able to qualify to purchase a fix and flip easier and Utah rental rates were able to qualify for DSCR and conventional loans. But as soon as the prime rate hit 8.5%, it was harder to turn Utah fix and flip properties and harder to make rents cover the monthly loan payment on a DSCR or conventional loan.
Apartment complex owners that purchased multifamily properties in Utah between 2020 and 2022 using hard money loans also discovered it was difficult to refinance with a long term DSCR loan or conventional loan once rates went up in the second half of 2022. The rental income was simply not high enough to support the new loan payment at the higher interest rates.
They Want REALLY large down payments: In the past, banks often asked for a 10-20% down payment on an investment property purchase in Utah, but now, banks are demanding 25-30% down on investment property purchases in Utah. Compare that to the 3-5% they want for your primary residence. For real estate investors in Utah, coming up with that large of a down payment is proving difficult.
The Approval Process Takes Forever: I’ve seen deals die while Utah real estate investors wait months – yes months – for bank approval. In the Utah real estate market, if you can’t close in 2 weeks, you’re not getting a good deal on a property. Simple as that.
They Don’t Understand Real Estate Investing: Try explaining a BRRRR strategy to your local bank loan officer. I’ll wait. They want to lend to W-2 employees buying cookie-cutter houses, they don’t want to lend to Utah entrepreneurs who are building wealth through real estate.
Commercial Lending Has Basically Stopped: Banks are rejecting 43% of commercial loan applications in Utah at the time this article is written. That’s not selective lending – that’s fear.
Hard Money Lenders in Utah: Your Real Solution
Here’s what hard money actually is, without the fancy marketing speak:
It’s a short-term loan secured by the property itself. The lender cares more about the property value than your credit score. It’s fast, it’s flexible, and yes, it costs more upfront.
Why Hard Money Loans Work in 2025:
- Speed: 5-10 day loan close, not 5-10 weeks!
- Asset-Based: We care about the property’s value, not your tax returns or credit score.
- Flexibility: We can structure loans that make sense for your specific project or need.
- Bridge Financing: Perfect for flips, rehabs, rentals, or short term loans for owner occupied purchases to get you to permanent financing.
The History of Hard Money Loans that Banks Don’t Want You to Know
Hard money loans aren’t some sketchy, “back-alley” financing for desperate people. This concept goes back thousands of years – lending against real assets. During the Great Depression, when banks failed left and right, private money lenders kept the economy moving. Hard money loans get their name “hard money” from the words, “hard asset” which means any asset that can be sold quickly, such as real estate.
After 2008, when banks pulled back due to new regulations, private money lenders stepped up again. We were one of the lenders that were lending to real estate investors after 2008 to help them buy foreclosures in Utah and all over the U.S. That’s how we got started and today, we continue to lend to real estate investors to buy all sorts of properties in Utah, Colorado, Idaho, Wyoming, Montana, Nevada, and other states in the Western U.S.
Let’s Address the Elephant in the Room- Hard Money Interest Rates
Yes, hard money loans cost more than bank loans. Usually 10-12% annually. But here’s what most people miss:
Time is Money: While you’re waiting 60 days for bank approval, that Utah property gets sold to someone else with cash, or with a hard money loan lined up. What’s the cost of losing that deal?
Short-Term Tool: These aren’t 30-year mortgages. Hard money loans are 6 months to 1 year. You’re paying for speed and easy loan qualification.
Your Property is the Collateral for the Loan: If your income is spotty, or your credit history is not so great, Utah hard money lenders qualify you primarily based on the property and the down payment. Tax returns are rarely requested, and credit is rarely pulled by Utah hard money lenders.
Do Your Homework: Not all hard money lenders that lend in Utah are created equal. Work with licensed, local, and reputable lenders – not some out-of-state lender that promises the lowest interest rate. Never choose a hard money lender based on interest rate and fees, look for the most responsive and qualified lender first.
Where The Hard Money Lending Industry is Heading
Technology is changing everything, and hard money is no exception:
AI and Data: We can analyze deals and approve loans faster than ever using AI and other applications at our fingertips.
Online Approvals: You can apply for a loan with us, get approved, and manage your loan from your phone! It’s 2025, not 1985. We use all forms of technology to make getting and funding your loan easy.
Real Talk: Is Hard Money Right for You?
Hard money loans work best if you:
- Need to close on a loan fast.
- Have a clear plan for how you’ll pay back the hard money loan in less than 12 months time.
- Understand the costs upfront.
- Are using real estate as the collateral for the loan. Most hard money lenders don’t offer business loans unless real estate is the collateral for the loan.
- Want flexibility in loan structure, like your credit took a hit recently, or your income has been hit or miss.
Hard money loans are NOT the right fit if you:
- Don’t have any time constraints and can shop around at different banks and credit unions for the lowest interest rate.
- Are looking for a business loan, or personal loan, and you don’t have real estate as collateral.
- Don’t have a solid plan to pay the hard money loan back in a short period of time like 6-12 months.
- Are looking for a long-term loan, such as a 30-year loan.
The Bottom Line for Utah Real Estate Investors
Banks have made it clear they don’t want Utah real estate investors as customers. Fine. We’ve built a hard money lending company in Utah around serving the Utah real estate investors they’ve abandoned.
Is hard money more expensive upfront? Yes. But when you factor in speed, flexibility, and actually being able to close deals, it often pencils out better than waiting weeks for a bank to “maybe.”
At Private Money Utah and High West Lending, we’ve helped thousands of real estate investors in Utah close deals that banks wouldn’t touch. We’re not here to replace your long-term financing strategy – we’re here to help you execute it.
Ready to stop playing games with banks and start closing real estate deals? Let’s talk. Because while you’re reading this, someone else is using hard money to buy the property in Utah that you’re still trying to get bank approval for.
Corey Dutton is the founder of Private Money Utah, a hard money lending company serving real estate investors throughout Utah. With over 17 years of experience in real estate and private money lending, Corey has helped fund millions in real estate transactions across the state.