How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

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DSCR Cash-Out vs Conventional Cash-Out

Two ways to pull equity out of a rental you own.

When you want to pull equity out of a rental, both a DSCR and a conventional cash-out refinance can do it, but they qualify you differently. A DSCR cash-out looks only at whether the property's rent covers the new payment, needs no personal income documents, and works inside an LLC with no cap on properties. A conventional cash-out qualifies you on your personal income and debt-to-income ratio for a lower rate, with tighter limits.

DSCR Cash-Out

Qualifies on the rental

Conventional Cash-Out

Qualifies on your income

Qualifies on

Property rent vs. payment

Personal income and DTI

Income docs

None required

Tax returns, W-2s, pay stubs

Ownership

LLC friendly

Usually personal name

Property limit

No set cap

Often capped

Typical max LTV

Up to about 75 to 80%

Similar, income permitting

Best for

Investors scaling in an LLC

W-2 owners with a few rentals

Bottom line

If your tax returns understate your income, you hold in an LLC, or you are past the conventional property cap, a DSCR cash-out is the cleaner path to your equity. If you have strong documentable income and few properties, a conventional cash-out may price lower.

Rates and terms shown are typical figures, subject to underwriting and market conditions. Not a commitment to lend.

Common questions

How much can I cash out with a DSCR refinance?

Leverage depends on the property's rent coverage and value, but investors commonly access up to roughly 75 to 80% of value, subject to the DSCR and underwriting. A stronger rent cushion supports higher leverage and a better rate.

Do I need tax returns for a DSCR cash-out?

No. A DSCR cash-out qualifies on the property's rent versus the new payment, so there are no tax returns, W-2s, or pay stubs. Your credit and the property carry the file.

Related comparisons

DSCR Loan vs Conventional LoanQualify on the property, or on your personal income.DSCR Loan vs Hard Money LoanLong-term rental financing versus short-term project capital.

Still not sure which fits?

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