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.

Fix and Flip · 5 min read

What Is ARV (After-Repair Value) and How Do You Calculate It?

The short answer

ARV is what a property is worth after renovation. How to calculate after-repair value from comps, and why lenders cap your loan at a percentage of it.

ARV (after-repair value) is what a property will be worth once the planned renovation is finished. It is the single most important number in a fix and flip, because lenders size the loan against it and it sets your profit on exit.

How do you calculate ARV?

ARV is based on comparable sales, not on what you spend. The method:

Pull 3 to 5 recent sold comps within about a mile that match the post-rehab condition, size, beds/baths, and style.
Adjust for differences (an extra bath, a bigger lot, a finished basement).
Land on a price per square foot the finished house will support, then multiply by your square footage.

A licensed appraiser does a formal version of this for the loan, but you should run your own before you offer.

Why does ARV matter to a lender?

Most fix and flip lenders cap total loan exposure at a percentage of ARV (often around 70%). That ceiling protects everyone: it keeps the loan well under the resale value so the deal still works if the market softens. If your purchase plus rehab pushes past that cap, you bring more cash or renegotiate.

The quick formula investors use

A common screen is the 70% rule: Max offer ≈ (ARV × 0.70) − rehab budget. It is a starting filter, not a substitute for real comps and a real budget.

Frequently asked

What does ARV stand for?

ARV stands for after-repair value, the estimated market value of a property once the planned renovation is complete.

How is ARV different from the purchase price?

The purchase price is what you pay for the property as-is. ARV is what it will be worth after the rehab, based on comparable sold properties in finished condition.

What is the 70% rule in house flipping?

The 70% rule says an investor should pay at most 70% of a property's ARV minus the rehab budget. It is a quick screening filter, not a precise underwriting tool.

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

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