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.

Strategy · 5 min read

Fix and Flip vs Buy and Hold: Which Strategy Is Right for You?

The short answer

Flipping creates quick cash; holding builds long-term wealth. Compare the two strategies on income, risk, taxes, and financing to choose your path.

Fix and flip generates fast, active income by renovating and selling. Buy and hold builds long-term wealth through rental cash flow and appreciation. Neither is better; they serve different goals, and many investors do both.

Fix and flip: fast capital

Profit realized in months at the sale.
Active, project-driven; income stops when you stop flipping.
Financed with short-term fix and flip loans (up to 90% purchase, 100% rehab, subject to underwriting).
Profits are typically taxed as ordinary income rather than long-term capital gains; consult your CPA.

Buy and hold: long-term wealth

Monthly cash flow plus appreciation and loan paydown over time.
Passive once stabilized; compounds as you add doors.
Financed with long-term DSCR or conventional loans.
Potential tax advantages through depreciation; consult your CPA.

How to choose

Flip when you need capital now or want to fund your holds. Hold when you want durable, growing income. The BRRRR method blends both: renovate like a flipper, then keep and refinance like a holder.

Frequently asked

Is flipping or renting more profitable?

Flipping produces larger lump sums faster; renting produces smaller, recurring income that compounds over time. Which wins depends on your goals and time horizon.

Which is less risky, flipping or holding?

Holding is generally lower risk because it does not depend on a single quick sale, but it ties up capital longer. Flipping is faster but more exposed to market timing and rehab overruns.

Can you do both fix and flip and buy and hold?

Yes. Many investors flip for capital and hold for wealth, and the BRRRR method deliberately combines the two.

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

Fix and Flip Rental / DSCR

Compare your options

DSCR Loan vs Hard Money Loan Hard Money vs Private Money

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