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.

Getting Funded · 4 min read

LTV vs LTC: What's the Difference?

The short answer

LTV measures a loan against a property's value; LTC measures it against total project cost. Learn when each applies and why it matters for your leverage.

LTV (loan-to-value) compares the loan to the property's value. LTC (loan-to-cost) compares the loan to the total cost of the project. Both express leverage, but they answer different questions, and which one a lender uses changes how much you can borrow.

What is LTV?

LTV = loan ÷ property value. On a stabilized or finished property, value is the anchor. A $400,000 loan on a $500,000 property is 80% LTV.

What is LTC?

LTC = loan ÷ total project cost (purchase plus rehab, or land plus construction). It is the right measure during a project, before the value exists. An 85% LTC loan funds 85% of what the project costs to execute; you bring the other 15%.

When does each apply?

Fix and flip: often both, leverage on purchase (a form of LTV/LTP) plus rehab funding, all capped under a percentage of ARV.
Ground-up construction: LTC leads, because there is no finished value yet.
Bridge / rental: LTV, against the property's value.

Why it matters

Two loans can both say "80%" and mean very different cash out of your pocket. Always ask whether a quoted percentage is against value or against cost.

Frequently asked

What is the difference between LTV and LTC?

LTV measures the loan against the property's value; LTC measures it against the total cost of the project. LTC is used during a build or rehab, LTV on a finished or stabilized property.

Which is used for a construction loan?

Construction loans lead with LTC (loan-to-cost), because the finished value does not exist yet. Leverage is sized against land plus construction costs.

Can a loan use both LTV and LTC?

Yes. Fix and flip loans often combine purchase leverage and rehab funding while also capping total exposure at a percentage of after-repair value (ARV).

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 Ground-Up Construction CRE Bridge

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