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.

Direct private lending, nationwide in most states

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Portfolio Loan vs Individual Mortgages

One loan across the portfolio, or one loan per door.

The question isn't which loan is cheaper per door. It's whether you've outgrown the point where separate mortgages still make sense. A portfolio loan puts five or more rentals under one loan and one payment, with a release provision to sell a property without unwinding the rest. Individual mortgages keep each property on its own loan, so you can sell or refinance one without touching the others. Most investors stay on individual mortgages while they're small, then move to a blanket loan once the number of doors, not the rate, becomes the bottleneck.

Portfolio (Blanket) Loan

One loan, many rentals

Individual Mortgages

Separate loan per property

Structure

One loan, all properties

Separate loan per property

Property count

5 or more

Often capped (e.g. ~10 financed)

Payment

Single consolidated

One payment per property

Loan size

$500K and up

Per-property loan amount

Selling one property

Release provision

Individual payoff

Collateral

Cross-collateralized pool

Separate lien per property

Bottom line

A portfolio loan solves a count problem and an admin problem, not a pricing problem: it consolidates five or more rentals into one loan with one payment, and a release provision keeps you liquid when you sell a door. Individual mortgages stay the better tool while you're inside the conventional financed-property cap and want each property to stand, sell, and refinance on its own. The switch usually happens when the number of doors, not the rate, is what's slowing you down.

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

Common questions

How many properties can you finance with a conventional loan?

What happens when I sell one property under a portfolio loan?

Do closing costs drop if I consolidate into one loan?

Related comparisons

DSCR Loan vs Conventional LoanQualify on the property, or on your personal income.Bank Statement Loan vs DSCR LoanYour deposits carry the file, or the property's rent does.DSCR Loan vs Hard Money LoanLong-term rental financing versus short-term project capital.

Still not sure which fits?

Tell us about your deal and we'll point you to the right structure. No obligation.

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