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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Transactional · 4 min read

Transactional Funding vs Hard Money: Which One Fits Your Deal?

The short answer

Transactional funding vs hard money: when a wholesaler needs same-day double-close capital versus a short-term hard money loan to renovate and resell.

Transactional funding and hard money both move fast, but they solve different problems. Picking the wrong one costs you fees or kills the deal, so it helps to know exactly what each is built for.

Transactional funding: same-day double closings

Transactional funding covers the A-to-B leg of a back-to-back closing so a wholesaler can take title for a few hours and immediately resell to the end buyer (B-to-C). It is repaid the same day from the resale, priced as a flat fee, and requires no credit check or appraisal because a ready, funded end buyer is what makes it safe.

Hard money: buy, renovate, resell

Hard money is a short-term loan you hold for months, used to purchase and renovate a property before selling or refinancing. It charges interest plus points, funds rehab in draws, and qualifies on the property and the after-repair value rather than your income.

How to choose

Reselling to an end buyer the same day? Use transactional funding.
Taking title to improve and exit later? Use a hard money fix and flip loan.
Assigning the contract for a fee with no closing in your name? You may need neither, just an assignment.

The bottom line

Transactional funding is a one-day bridge between two simultaneous closings. Hard money is the capital that carries a project from purchase to exit. Match the tool to how long you actually hold the property.

Frequently asked

Is transactional funding the same as hard money?

No. Transactional funding covers the A-to-B leg of a same-day double closing and is repaid within hours. Hard money is a short-term loan, often months, used to buy and renovate a property.

Which costs less, transactional funding or hard money?

Transactional funding is priced as a flat fee, usually 1% to 3% of the amount funded, because it is outstanding for a day or two. Hard money charges interest plus points over the months you hold the loan.

When does a wholesaler need transactional funding?

When you are doing a true back-to-back (double) closing and your title company requires your own funds on the A-to-B side before the B-to-C sale funds you.

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

Transactional Funding Fix and Flip

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Hard Money vs Private Money Hard Money vs Conventional Loan

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