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

What Is Transactional Funding? (Double Closings for Wholesalers)

The short answer

Transactional funding is same-day capital for the A-to-B leg of a double closing, so a wholesaler closes the B-to-C sale. How it works and what it costs.

Transactional funding is very short-term capital that lets a wholesaler or assignor buy a property (the A-to-B closing) and immediately resell it to the end buyer (the B-to-C closing), often on the same day. It bridges the gap with little or none of your own cash.

How does a double closing work?

There are two back-to-back transactions:

A to B — you buy from the original seller, funded by transactional capital.
B to C — you sell to your end buyer, and their funds (or their lender's) pay off the transactional loan.

Because the two closings happen together, the money is outstanding for hours, not weeks.

When do you use it?

Use transactional funding when your end buyer's lender will not allow an assignment of contract, or when your purchase contract does not permit assignment. Both closings run through the title or escrow company as separate, fully disclosed transactions, and if your end buyer is financing, their lender needs to know it is a back-to-back closing.

What does it cost?

Pricing is a flat fee rather than an annual rate, because the loan lasts a day. The fee is typically small relative to a healthy spread, and you keep the deal on schedule without tying up your own capital.

Frequently asked

What is the difference between transactional funding and an assignment?

An assignment transfers your purchase contract to the end buyer for a fee. Transactional funding instead funds an actual purchase and resale (a double close), useful when the end buyer's lender will not allow an assignment.

How long is transactional funding outstanding?

Usually hours. The A-to-B and B-to-C closings happen back to back, often the same day, so the capital is repaid almost immediately from the end buyer's funds.

Do you need good credit for transactional funding?

Credit matters far less than on a normal loan because the financing is repaid the same day from the resale. The deal and the end buyer drive the approval.

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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