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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Transactional Funding vs Hard Money

The buyer on your C side decides which one you need.

Both fund a purchase you don't plan to keep long, but they solve different exits. Transactional funding covers the A-to-B leg and gets repaid the same day, out of the simultaneous B-to-C resale, so it only works if your end buyer's money lands today. Hard money, which on our side is the fix and flip program rather than a product literally named 'hard money,' carries the property for a stated term instead, so the exit can happen on your schedule. The product that fits often comes down to who is buying from you and how they're paying, not how long you plan to hold.

Transactional Funding

A-to-B leg funding

Hard Money

Acquisition plus rehab

What it funds

The A-to-B leg

Purchase plus rehab

Hold period

Days, not weeks

6-month term

Pricing basis

Flat fee

Interest-only, from 9.99%*

Underwriting

No credit or appraisal

Property and exit driven

Repayment source

Simultaneous resale

Sale or refinance

Simultaneous

5-7 days typical

Bottom line

Transactional funding only works when your end buyer's money lands the same day, since the simultaneous resale is the entire repayment plan. Hard money is the answer the moment that exit stops being simultaneous: your buyer's financing won't close today, the property needs work first, or you'd rather own it than lose the contract. The rate shown on the hard money side is a starting rate, subject to underwriting.

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

Common questions

Can my end buyer use an FHA loan on a same-day double close?

Will my end buyer's lender see what I paid for the property?

What happens if my end buyer doesn't close on time?

Related comparisons

Hard Money vs Private MoneySame asset-based idea, different source and flexibility.Hard Money vs Conventional LoanSpeed and flexibility versus the lowest-cost long-term money.Assignment vs Double CloseThe real question is whether assignment is even open to you.

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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