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.

Direct private lending in most states

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For Partners · 4 min read

What Is a Preferred Lender, and Why Wholesalers Need One

The short answer

A preferred lender is the financing partner you point your buyers to. Here's why having one makes your deals close and your buyers list stronger.

A preferred lender is the financing partner a wholesaler or dispo team points their buyers to by default. Having one matters because it turns the riskiest part of your deal, whether the buyer can actually close, into a far more predictable outcome.

What a preferred lender does for you

Closes your buyers fast, so your contracts perform on time.
Issues proof-of-funds letters for your buyers, making their offers credible.
Gives you one named contact who knows your pipeline and answers the phone.
Keeps you in the loop on each deal's status, so you are never guessing.

Why it strengthens your buyers list

When your buyers know the financing will perform, they bid with confidence and come back for your next deal. A buyers list that closes is worth far more than a big list that flakes, and a preferred lender is what makes the difference.

How to choose one

Look for a direct lender (not a broker) that underwrites in house, funds on the asset, and moves fast, typically a same-day term sheet and funding within 48 hours of clear title, subject to underwriting. Speed and predictability are the whole point.

Frequently asked

What is a preferred lender?

The financing partner a wholesaler or agent points their buyers to by default, chosen because they close fast and reliably, making the buyer's ability to close a much more predictable outcome.

Why do wholesalers need a preferred lender?

Because a buyer who cannot close costs you the deal. A preferred lender funds your buyers fast, issues proof-of-funds letters, and keeps your contracts performing.

Should a preferred lender be a direct lender or a broker?

A direct lender. They underwrite and fund in house, so there is no middle layer slowing the close, which is the entire value of a preferred-lender relationship.

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 Transactional Funding

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Hard Money vs Private Money Hard Money vs Conventional Loan

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