Financing Type

Hard Money

Asset-based lending from professional lenders — fast capital secured by the property itself.

What is Hard Money?

Hard money loans are short-term, asset-based loans provided by private lending companies (not banks). The loan is secured primarily by the value of the real estate being purchased — not your credit score or income. Lenders focus on the property's after-repair value (ARV) and the deal's potential, making this a go-to tool for investors who need fast capital for distressed or value-add properties.

How It Works

01

Submit the Deal

Share the property details, purchase price, and your rehab plan with the hard money lender for review.

02

Property Appraisal

The lender evaluates the property's current value and after-repair value (ARV) to determine loan eligibility.

03

Loan Approval

Approval is based on the deal — not your credit. Decisions often come within 24–72 hours.

04

Close & Execute

Funds are released at closing. You complete the rehab, then refinance or sell to repay the loan.

Typical Terms

9–15%

Interest Rate

6–18 mo

Loan Term

65–75%

LTV / ARV

3–10 days

Close Time

Advantages

  • Extremely fast approval & funding
  • Credit score is not the primary factor
  • Can fund distressed/non-warrantable properties
  • Enables high-volume deal flow
  • Widely available through lender networks

Considerations

  • Higher interest rates (9–15%)
  • Short loan terms require exit strategy
  • Origination fees (1–3 points)
  • Not suitable for long-term holds

Hard Money vs. Private Money

FactorHard MoneyPrivate Money
Lender TypeProfessional companyIndividual person
TermsStandardizedFully negotiable
Speed3–10 days7–21 days
RelationshipTransactionalPersonal
AvailabilityEasy to findRequires networking

Best For

Hard money is the go-to for active investors who flip properties or execute the BRRRR strategy at scale. If you need to close fast on a distressed deal and have a clear exit plan (sell or refinance), hard money gives you the speed and flexibility that banks simply can't match.

Fix & FlipBRRRR StrategyDistressed PropertiesActive InvestorsFast Closings

Ready to put your capital to work?

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