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.

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Rental / DSCR · 5 min read

The Ten-Financed-Property Limit and What Comes Next

The short answer

Conventional financing gets harder as your property count climbs. What the limit means in practice, and the three routes investors take once they reach it.

Investors buying rentals on conventional financing tend to hit the same wall. The loans get harder to place as the financed-property count climbs, then stop being available at all, and it usually arrives at the exact point the portfolio is working.

The limit counts financed properties, not properties owned. A rental owned free and clear does not use a slot; your own home usually does.

Why it exists

Conventional investment lending is written to be sold on, and the buyers of that paper cap exposure to any single borrower. That is an appetite rule in the secondary market, not a judgment about you. It is also why the wall is abrupt: nothing about your deal changed, only which desk can buy the loan.

Documentation tightens well before the hard limit too. Reserve requirements climb, and every additional property means more paperwork on every subsequent file.

Route one: DSCR

A DSCR loan qualifies on the property's rent rather than your tax returns, and is not written to conventional agency rules, so the financed-property count is not the same constraint. Our DSCR program goes to 80% LTV with DSCR from 0.75 and credit from 640.

This is the most common next step, and DSCR vs conventional sets out what you give up: usually rate, in exchange for the count no longer mattering.

Route two: consolidate into a portfolio loan

Refinance several rentals into a single portfolio loan. Five or more properties, one blanket facility, one payment. It frees the individual slots and simplifies the admin.

How to refinance a rental portfolio covers the mechanics in full, and portfolio loan vs individual mortgages covers the trade.

Route three: entity ownership

Holding in an LLC changes the lending conversation, though it does not on its own reset a personal count. Financing a rental in an LLC and LLC vs personal name cover what actually changes and what does not.

Plan it before you need it

The investors who handle this well decide the route at property six or seven, not at eleven with a deal under contract. Check the DSCR calculator against your existing rentals now and you will know which of your properties would already qualify.

Program rules vary by lender and are set in underwriting. Not a commitment to lend.

Frequently asked

Does the limit count properties I own outright?

What is the easiest route once conventional runs out?

Can I reset the count by moving properties into an LLC?

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

Rental / DSCR Portfolio Loans Conventional Investment

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DSCR Loan vs Hard Money Loan DSCR Loan vs Conventional Loan

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