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.

Rental / DSCR · 4 min read

Cash-Out Refinance on an Investment Property

The short answer

A cash-out refinance turns your property's equity into capital for the next deal. Learn how it works on a rental, what you can pull, and when to use it.

A cash-out refinance replaces your current loan with a larger one and gives you the difference in cash, turning built-up equity into capital you can redeploy. On an investment property, it is one of the most powerful tools for scaling.

How does it work on a rental?

If your property is worth more than you owe, a new loan pays off the old balance and returns the extra equity as cash. With a DSCR cash-out refinance, the new loan qualifies on the property's rent, so you can pull equity without your personal income limiting you.

When investors use it

The final leg of a BRRRR deal, recovering your original capital.
Pulling equity from a stabilized rental to fund the next purchase.
Replacing a short-term bridge loan with long-term debt and taking cash out at the same time.

What you can pull

The amount depends on the property's value, the loan-to-value limit, and, for DSCR, whether the rent supports the new payment. A higher value and stronger rent let you pull more.

Frequently asked

Can you do a cash-out refinance on a rental property?

Yes. A DSCR cash-out refinance qualifies on the property's rent, so you can convert equity to cash without a personal income test.

How much can you cash out on an investment property?

It depends on the property's value, the lender's loan-to-value limit, and whether the rent covers the new payment. Stronger value and rent let you pull more.

When should you do a cash-out refinance?

Common uses are the refinance leg of a BRRRR deal, pulling equity to fund the next purchase, or replacing a bridge loan with long-term debt.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Rental / DSCR CRE Bridge Portfolio Loans

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DSCR Loan vs Hard Money Loan DSCR Loan vs Conventional Loan

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