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.

Bridge · 4 min read

Commercial Bridge vs Permanent Financing

The short answer

Bridge loans are fast and short; permanent loans are lower-cost and long. When to use each on commercial real estate, and how investors move between them.

On commercial real estate, a bridge loan is fast, flexible, and short-term, used to acquire or reposition a property. Permanent financing is lower-cost and long-term, used once the property is stabilized. Most projects use a bridge first, then refinance into permanent debt.

When to use a bridge loan

Close fast on an opportunity before permanent financing is possible.
Reposition or stabilize a property (lease-up, renovation) that does not yet qualify for permanent debt.
Pull equity (cash-out) to move on the next deal.

When to use permanent financing

The property is stabilized with steady, documented income.
You want the lowest long-term rate and a longer term.
You are holding for the long run, not transitioning.

The typical path

Acquire with a bridge loan, execute your business plan to stabilize the asset, then refinance into permanent debt, agency, insurance, or wholesale, at a lower long-term rate. The bridge wins the deal; the permanent loan keeps it.

Frequently asked

What is the difference between a bridge loan and permanent financing?

A bridge loan is short-term, fast, and flexible for acquiring or repositioning a property. Permanent financing is long-term and lower-cost, for stabilized property held for the long run.

Can you refinance a bridge loan into a permanent loan?

Yes, that is the standard path. You use a bridge to acquire and stabilize, then refinance into long-term permanent debt at a lower rate.

Why not just use permanent financing from the start?

Permanent lenders require stabilized, documented income and close slower. If a property is not yet stabilized or you need speed, a bridge loan fills the gap.

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

CRE Bridge CRE Permanent

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Bridge Loan vs DSCR Loan CRE Bridge vs CRE Permanent Loan

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