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.

Construction · 4 min read

What Is a Draw Schedule on a Construction Loan?

The short answer

A draw schedule releases construction funds in stages as work is completed. Learn how draws and inspections work and how to keep them on time.

A draw schedule is the agreed plan for releasing construction or rehab funds in stages as the work gets done, rather than all at once. Each stage is a "draw," and you only pay interest on the money that has actually been released.

How does a draw work?

The budget is divided into milestones, foundation, framing, roof, mechanicals, finish. As each milestone is completed and inspected, the lender reimburses that portion of the budget. You fund the work first, then get reimbursed, which is why you keep some working capital on hand.

Why lenders use draws

Releasing money in stages protects everyone: funds track real progress, so the loan stays aligned with the value being built and there is no large unspent balance sitting idle.

How to keep draws on time

Match your budget to the draw schedule before you start.
Document completed work and request inspections promptly.
Keep enough working capital to fund each stage ahead of reimbursement.

Frequently asked

How does a construction loan draw work?

Funds release in stages tied to completed, inspected milestones. You pay interest only on the amount drawn so far, and you typically fund each stage before reimbursement.

How many draws are in a construction loan?

It varies, but draws usually map to major milestones such as foundation, framing, roof, mechanicals, and finish, often a handful across the project.

Do you pay interest on the full construction loan?

No. You pay interest only on funds that have been drawn, which keeps early-stage carrying costs lower.

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

Ground-Up Construction Fix and Flip

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Hard Money vs Private Money Hard Money vs Conventional Loan

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