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Last updated: May 20, 2025
At OfferMarket, our mission is to empower Wisconsin real estate investors to build wealth across the Badger State. Whether you're working in Milwaukee, Madison, Green Bay, or beyond, our all-in-one platform supports your investing journey with:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties
Our Hard Money Loan program is crafted to offer Wisconsin investors fast, reliable, and cost-effective financing solutions to purchase, refinance, and renovate 1-4 unit residential investment properties throughout the state.
Whether your plan is to flip a Milwaukee bungalow for profit or hold a Madison duplex as a rental and later refinance into a DSCR loan, we’re excited to earn your trust and help you succeed.
Let’s dive into the OfferMarket Hard Money Loan Program tailored for Wisconsin!
A hard money loan is a short-term loan secured by a tangible asset—here, 1-4 unit residential real estate within Wisconsin—to buy, refinance, and rehab properties. This financing enables investors to quickly capitalize on Wisconsin’s diverse real estate market, whether in urban hubs like Kenosha or rural areas in central Wisconsin.
Commonly called “bridge loans” or “fix and flip loans,” hard money loans are popular among Wisconsin investors for their speed and flexibility.
In Wisconsin’s real estate market, hard money loans are frequently utilized for these key situations:
A hard money loan in Wisconsin consists of two parts:
Initial Advance — funds used toward the purchase price, wired directly to the title company at closing.
Construction Holdback — funds reserved for renovation, released via draw reimbursements as work progresses.
Wisconsin investors often combine both for optimal leverage. Some prefer only an initial advance if they self-fund rehab, or just a holdback if they bought a property with cash but need rehab funding.
Your exit strategy in Wisconsin might be to flip for quick profits or hold and refinance with a rental loan like a DSCR loan. Many Wisconsin investors adapt based on local market shifts—from Madison’s tight rental market to Milwaukee’s flipping hotspots.
For example, you might pursue the BRRRR method—buy, rehab, rent, refinance, repeat—in Milwaukee. But if rental demand softens, you could instead flip the property for a gain and reinvest elsewhere.
Or, if a planned flip in Wisconsin’s market cools off, you may rent the property, refinance into a DSCR loan with minimal penalties, and sell once the market rebounds.
The flexibility of dual exit strategies is crucial in Wisconsin’s often dynamic markets.
Wisconsin’s real estate investors frequently rely on hard money loans for their unique advantages, including:
Fix and flip investors (“flippers”) — actively buying distressed homes in neighborhoods like Milwaukee’s Bay View or Racine, rehabbing quickly, and selling for profit.
Rental property investors (the “BRRRR Method”) — purchasing homes in Madison or Appleton, renovating, renting, refinancing into long-term loans, and repeating the process to build a rental portfolio.
Many Wisconsin investors employ hybrid strategies, flipping some properties and holding others as rentals, adjusting based on local market trends and neighborhood demand.
Criteria | Guideline |
---|---|
Loan amount (minimum) | $25,000 |
Loan amount (maximum) | $2,000,000 |
ARV (minimum) | $100,000 |
Experience | Not required |
Credit score (minimum) | 680 |
Borrowing entity | LLC or Corporation |
Initial advance | Up to 90% |
Construction holdback | Up to 100% |
LTARV (maximum) | 75% |
Interest rate | Get instant quote |
Origination fee | 1.5 to 2 points |
Term | 12 to 24 months |
Points out | None |
Prepayment penalty | None |
Structure | Interest-only with balloon payment |
Recourse | Full (51% of borrowing entity must guarantee) |
Exit strategy: Sale | Minimum 30% ROI |
Exit strategy: Refinance | Minimum 1.1 DSCR after repairs |
Valuation | Appraisal report or In-house valuation |
SqFt (minimum) | Single family: 700+; 2-4 unit: 500+ per unit; Condo: 500+ |
Acreage (maximum) | 5 |
Interest accrual | Under $100,000 loan: full boat; $100,000+ loan: as disbursed |
Advanced draws | Lender discretion |
Down payment (minimum) | $10,000 |
Our commitment to Wisconsin investors is to help you manage risk while building wealth through real estate. We pride ourselves on a default rate well below 0.5%, thanks to rigorous underwriting and support.
Wisconsin’s varied markets—from urban Milwaukee to rural northern counties—present different challenges. Projects with high rehab complexity pose greater risks, especially for less experienced borrowers. Our goal is to help you select projects that fit your expertise and liquidity to avoid delays and cost overruns.
As your hard money lender, OfferMarket partners with you as your advisor and capital provider to set clear expectations and promote successful project execution in Wisconsin.
The initial advance depends on your experience, creditworthiness, and deal specifics, including the property location within Wisconsin.
Factors considered include:
Number of investment properties owned in the last 24 months
Verifiable rehab projects completed in the last 5 years
Credit score minimum of 680, ideally 720+ for the guarantor
Increased leverage for licensed Realtors, General Contractors, and Professional Engineers active in Wisconsin
If the purchase price exceeds the appraised “As Is” value, the advance will be based on the lower “As Is” valuation, not the contract price.
Your exit strategy also impacts your advance:
If selling, a minimum 30% gross margin and $15,000 profit is expected.
If renting and refinancing, projected DSCR after repairs should be at least 1.1.
Rural Wisconsin properties will have stricter limits and require at least moderate experience.
Tier | Verifiable Experience (Completed rehab projects) |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
Tier | Initial advance (% of purchase price) |
---|---|
1 | 80%* |
2 | 85% |
3 | 85% |
4 | 90% |
5 | 90% |
* 85% advance is available by exception for borrowers with excellent credit and liquidity.
Scenario | Adjustment |
---|---|
Credit score below 720 | -5% |
Full gut rehab | -5% |
New Wisconsin market (unfamiliar regions) | -5% |
Licensed Wisconsin Realtor | Up to +5% |
Licensed Wisconsin General Contractor | Up to +10% |
Licensed Wisconsin Professional Engineer | Up to +10% |
Rural Wisconsin property | -20% (minimum 3 projects experience required) |
Rehab Scope | Definition |
---|---|
Light | Rehab budget less than 25% of purchase price |
Moderate | Rehab budget between 25% and 49.99% of purchase price |
Heavy | Rehab budget between 50% and 99.99% of purchase price |
Extensive | Rehab budget exceeds 100% of purchase price — includes additions, expansions, accessory dwelling units (ADUs), or low purchase price “lopsided deals”* |
* A “lopsided deal” refers to properties where the As Is value or purchase price is less than the rehab budget. Refer to LTFC limits below.
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience (completed projects) | 0 | 1-2 | 3-4 | 5-9 | 10+ |
Light | Eligible | Eligible | Eligible | Eligible | Eligible |
Moderate | Ineligible | Eligible | Eligible | Eligible | Eligible |
Heavy | Ineligible | Eligible | Eligible | Eligible | Eligible |
Extensive | Ineligible | Ineligible | Eligible | Eligible | Eligible |
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
Light | 70% | 70% | 75% | 75% | 75% |
Moderate | Ineligible | 70% | 75% | 75% | 75% |
Heavy | Ineligible | 70% | 75% | 75% | 75% |
Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
LTFC caps the loan amount relative to total project cost (purchase price plus rehab budget) to ensure borrower investment in higher-risk extensive rehabs.
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
Light | N/A | N/A | N/A | N/A | N/A |
Moderate | Ineligible | N/A | N/A | N/A | N/A |
Heavy | Ineligible | N/A | N/A | N/A | N/A |
Extensive | Ineligible | Ineligible | 85% | 90% | 90% |
Purchase price: $100,000
Tier: 1 (0 projects)
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat
Purchase price: $100,000
Tier: 1
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed
Purchase price: $100,000
Tier: 4
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed
OfferMarket typically underwrites based on your cost basis (purchase price plus sunk costs) to maintain borrower equity. However, for seasoned Wisconsin properties valued higher “As Is” than cost basis, refinancing may be available if:
Property is habitable and in condition rating C4 or better
Property has been owned for 3+ years
Previous lender payoff statement shows no penalties or fees
Credit score 680+
Experience Tier 3 or higher with 4+ similar rehab projects
Market comps support higher As Is valuation
The property was rented, tenants vacated, and now renovation is planned to list for sale
For hard money loans in Wisconsin involving wholesaler transactions, OfferMarket will include the assignment fee or double-close price increase in your cost basis for the initial advance, up to 20% of the original purchase price (A-B contract). Any excess beyond this threshold must be covered by the borrower.
OfferMarket requires a full set of contracts and assignments (A-B, B-C) along with the wholesaler’s operating agreement to review such transactions. All wholesaler deals must be conducted at arm’s length, and we do not finance finder’s fees or referral fees.
The construction holdback portion of your Wisconsin hard money loan is disbursed based on draw requests and verified progress against your approved scope of work. This draw reimbursement process supports transparency and risk management for your rehab project.
If you have sufficient liquidity to self-fund your rehab, you may opt out of the construction holdback component entirely.
For loans of $100,000 or greater, interest is charged only on funds actually disbursed (“as disbursed” interest accrual).
Criteria | Details |
---|---|
Minimum draw amount | None |
Maximum draw amount | 100% of remaining holdback |
Minimum number of draws | 0 |
Maximum number of draws | None |
Materials delivered but not installed | 50% reimbursed (receipt required) |
Draw inspection | App-based self-inspection |
Draw turnaround | 0 to 2 business days |
Draw fee | $270 |
Wire fee | $30 |
A valuation is mandatory for all OfferMarket hard money loans in Wisconsin. Depending on your situation, we may require:
A full interior appraisal
An exterior appraisal
An in-house valuation
Criteria | Requirement |
---|---|
Property Type | Single family, duplex, triplex, or fourplex |
Experience Tier | 4 or higher |
Credit Score | 720+ |
Rural Location | No |
New Wisconsin Market | No |
Maximum LTARV | 70% |
Criteria | Guideline |
---|---|
Maximum LTV | Tier 1 & 2: 70%; Tier 3-5: 75% |
Maximum LTFC | Tier 1 & 2: 80%; Tier 3-5: 90% |
Appraisal Condition | C1, C2, C3, or C4 |
Loan Term (maximum) | 12 months |
Criteria | Details |
---|---|
Loan Amount | $25,000 to $2,000,000* |
Units per Property | 1 – 4 |
Eligible Property Types | Non-owner occupied 1-4 unit residential: single-family, duplex, triplex, fourplex, condos, townhomes |
Property Minimum Size | Single-family: ≥700 sqft; Condo & 2-4 unit: ≥500 sqft per unit |
Maximum Acreage | 5 acres |
Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
Loan to ARV (LTARV) | Up to 75% |
Down Payment | Minimum $10,000 for purchase prices under $100K |
Loan Term | Standard 12 months; 18-24 months available for select projects |
Extensions | Up to 50% of original term (fee applies) |
Points | 1.5 to 2 points ($2,000 minimum) |
Prepayment Penalty | None |
Occupancy | Non-owner occupied, business purpose only |
Transaction Types | Arms-length purchase, refinance |
Geographic Region | Wisconsin and other eligible states |
Amortization | Interest-only with balloon payment at maturity |
Interest Accrual Method | Loans < $100K: full amount; ≥ $100K: as disbursed |
Hard money loans are designed as short-term financing solutions, typically 12 to 24 months. Extensions are not ideal and should be avoided because they increase costs and risk.
To minimize extension risk in Wisconsin, focus on:
Hiring experienced general contractors with solid references
Avoiding aggressive rehab scopes beyond your expertise
Steering clear of markets with slow permits or zoning
Ensuring you have immediate access to the property (avoid tenants with leases or holdovers)
Maintaining a dual exit strategy to sell or refinance
Initial Loan Term | Max Extension |
---|---|
12 months | 6 months |
18 months | 9 months |
24 months | 12 months |
Extension Term | Fee |
---|---|
3 months (1st request) | 1% of total loan amount |
3 months (2nd request) | 1.5% of total loan amount |
6 months (1st request) | 2.5% of total loan amount |
Interest reserves are funds collected at closing and held in escrow to cover accrued interest during the loan term. These reserves help borrowers manage cash flow by delaying monthly interest payments until drawn down.
Interest Reserve | Scenario |
---|---|
0 months | At lender’s discretion |
1 month | Guarantor FICO 700+ |
3 months | Guarantor FICO between 660 and 699 |
6 months | Guarantor FICO between 660 and 699 AND/OR credit/background concerns |
To help protect your liquidity and credit score during renovations, OfferMarket may allow you to finance your interest payments. Instead of monthly interest payments, interest accrues and is added to your loan payoff balance.
For example:
Loan Amount: $100,000
Interest Rate: 12%
Months Held: 9
Accrued Interest: $9,000 ($100,000 × 12% ÷ 12 × 9)
Payoff Statement: $100,000 principal + $9,000 interest
This option is designed to help Wisconsin investors maintain cash flow during their rehabs.
When sourcing properties in Wisconsin, OfferMarket requires:
General Contractor agreements or explanations if not required, especially for new markets.
Additional documentation and review for properties with prior price increases, wholesale deals, or non-arms-length transactions.
Architect or engineer letters (or permits) for condos, conversions, and significant renovations.
Complete submissions including purchase contracts, settlement statements, payoff letters (if refinancing), track record, and formation documents.
Proper insurance is critical to protect your investment property, your business, and yourself. Hard money loan insurance in Wisconsin often includes Builders Risk or Fix and Flip policies, covering properties under construction, vacant, or in poor condition.
Coverage Type | Required Limit |
---|---|
Dwelling | Replacement cost or loan amount (no coinsurance) |
Liability | $1 million per occurrence / $2 million aggregate |
Builders Risk | Included |
Flood | Greater of $250,000 or loan balance (if in FEMA flood zone) |
AM Best rating A- VIII or higher
Special form policy type
Deductibles between $1,000 and $5,000
Mortgagee and additional insured designation
No windstorm, hail, or named storm exclusions
30-day cancellation notice required
Pro tip: Upon taking ownership of a Wisconsin property, promptly install smoke detectors, secure locks, and security cameras to comply with insurance policies and avoid claim denials.
(*) In states where NMLS license is required for business purpose lending or we do not directly lend, OfferMarket operates as a rate shopping service and refers your loan to a licensed capital provider.
Yes! Many Wisconsin real estate investors hold multiple hard money loans simultaneously. However, our top priority is helping you manage risk. If your liquidity or project pace suggests additional loans may stretch you too thin, we will advise you accordingly.
Yes. Hard money loans are business purpose loans issued to your business entity (LLC or corporation) and classified as commercial loans under Wisconsin regulations.
Our minimum loan amount is $25,000 for Wisconsin and all other funded states.
We finance non-owner occupied 1-4 unit residential properties in Wisconsin, including single-family homes, townhomes, small multifamily (2-4 units), and warrantable condos.
Properties like 2-4 unit mixed use, 5-9 unit multifamily, and commercial properties are not eligible under this program but may be financed through other loan options at OfferMarket.
For hard money loans, we typically use Loan-to-After-Repair Value (LTARV). Your initial advance is based on the lower of the As Is value or the purchase price in your contract or previous closing. LTARV is the total loan amount divided by the after-repair value determined by appraisal or in-house valuation.
A minimum FICO score of 680 is required for Wisconsin borrowers. Scores between 660 and 679 may be considered on an exception basis, subject to underwriting.
Experience is not mandatory. However, verifiable rehab project experience can increase your leverage and improve loan terms. OfferMarket uses a tiered experience system to assess your eligibility and advance amounts.
No. Being a wholesaler does not count towards your rehab experience because you are not financially responsible for the rehab’s completion.
Our Loan File system is designed to simplify processing and expedite loan approval and funding for Wisconsin borrowers. Documentation you provide is securely stored to speed up future applications.
Document | Description |
---|---|
Purchase Contract | Fully executed by buyer and seller |
Credit Report | Soft tri-merge credit report for each borrowing entity guarantor |
Background Report | Required for each borrowing entity guarantor |
Track Record | Required for each borrowing entity guarantor |
ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
Scope of Work | Detailed rehab budget used to determine ARV |
Appraisal Report | Paid appraisal uploaded to loan file |
Bank Statements | Two most recent statements per guarantor (personal or business accounts) |
Letter of Explanation | If requested (e.g., for large deposits or credit issues) |
Document | Description |
---|---|
Loan File | Settlement statement fully executed by buyer and settlement agent |
Credit Report | Soft tri-merge credit report for each borrowing entity guarantor |
Background Report | Required for each borrowing entity guarantor |
Track Record | Required for each borrowing entity guarantor |
ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
Sunk Costs | List and costs of expenses already incurred |
Scope of Work | Detailed rehab budget guiding property rehab |
Appraisal Report | Paid appraisal uploaded to loan file |
Bank Statements | Two most recent statements per guarantor (personal or business accounts) |
Letter of Explanation | If requested (e.g., large deposits or credit issues) |
Loans exceeding $1 million (up to our $2 million maximum) in Wisconsin are subject to enhanced underwriting guidelines to manage the increased risk associated with larger transactions:
Criteria | Explanation |
---|---|
Experience | Minimum of 3 similar or higher-priced rehab projects strongly preferred |
Market Liquidity | At least 3 comparable sales (comps) within a 2-mile radius on the MLS in the last 6 months |
Credit Score | Minimum 680 with at least 5 tradelines showing 24 months of history |
Rural Designation | Not eligible if the property is designated rural by CFPB, USDA, or appraisal report |
Track Record | Required for each member of the borrowing entity |
These requirements help ensure sufficient borrower expertise and local market support for larger Wisconsin real estate investments.
Term | Definition |
---|---|
ADU | Accessory Dwelling Unit: A secondary, self-contained housing unit on the same tax parcel as a main Wisconsin single-family home. |
Arms-length | A transaction between independent parties with no special relationship, ensuring fair market value. |
Non Arms-length | A transaction where personal, financial, or business connections may affect fairness, pricing, or terms. |
Initial Advance | The portion of the total loan wired to the title company at closing for the purchase price. |
Construction Holdback | Funds reserved for property rehab, disbursed via draw requests as work progresses. |
Interest Reserves | Funds collected at closing held in escrow to cover accrued interest during the loan term. |
LOE | Letter of Explanation: A document clarifying specific borrower details, like credit or background issues. |
LTC | Loan to Cost: Ratio of the loan amount to the purchase price plus rehab costs. |
LTFC | Loan to Full Cost: Ratio of the loan amount to total project cost (purchase price + rehab). |
LTV | Loan to Value: Ratio of the loan amount to the property's As Is value. |
LTARV | Loan to After Repair Value: Ratio of the loan amount to the property's value post-renovation. |
As Disbursed Interest | Interest accrues only on funds already drawn (purchase advance + rehab draws). |
Full Boat Interest | Interest accrues on the entire loan amount, regardless of draws disbursed. |
Lopsided Deal | When the rehab budget exceeds the purchase price or As Is value, common in extensive Wisconsin rehabs. |
GC Agreement | Contract with a General Contractor outlining management and execution responsibilities. |
DSCR | Debt Service Coverage Ratio: Property income divided by debt obligations, crucial for rental refinance strategies. |
Instant Hard Money Loan Quote for Wisconsin Investors
OfferMarket Capital LLC specializes in private lending for 1-4 unit residential real estate investors across Wisconsin. Our mission is to help you build wealth through real estate by providing fast, reliable, and tailored hard money loans.
Thousands of Wisconsin investors benefit from OfferMarket every month. Membership is free and includes:
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