"Not So Hard Money" is collateralized by real estate equity only. In other words, your materials, supplies, furnishings, fleet vehicles, products, or future value cannot be used to secure a "Not So Hard Money" loan, although they can contribute to risk abatement. "Not So Hard Money" can also be cross-collateralized (multiple properties for one large loan), or business use cash-out (a loan on owned real-estate where the money is intended for business purpose), but must be collateralized by real estate.
Real estate equity is determined by finding the real estate's likely value, and then multiplying up to a max of 65% LTV for the loan value:
Estimated Loan Amount = Estimated Real Estate Value x 65% LTV
"Not So Hard Money" can come in as a 2nd position loan by subtracting all existing loan balances from the 65% LTV result and the remainder would be the estimated loan amount:
Estimated 2nd Position Loan Amount = Estimated Loan Amount - Sum of all Liens against the real estate
Each borrower is more than just a formula, and more than just the owner of "real estate equity". If your borrower's situation is unique in your mind, contact us and let us hear their story and we'll try to find a workable scenario to present!