Bridge Loans
Short-term financing that covers the gap between where a property is today and the permanent financing or sale that pays the loan off.
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Private Money Loans
Asset-based financing secured by the property itself, built for investors who need to move faster than conventional underwriting allows.
How private money loans work
Private money and hard money loans are secured by real estate and underwritten primarily on the strength of the asset rather than on the borrower's income documentation. The lender's central question is what the property is worth today, what it will be worth after the borrower's plan is carried out, and how much equity protects the loan if the plan does not go as expected.
Because the analysis centres on collateral, these loans are typically short-term and interest-only, and they are priced above conventional bank debt to reflect the speed, flexibility and risk the lender takes on. Investors use them as a tool for a defined period, not as permanent financing — almost every private money loan is written with an exit in mind from the first conversation.
Potential uses
When this financing fits
- Acquiring a property that will not qualify for bank financing in its current condition — deferred maintenance, vacancy, or an unfinished certificate of occupancy.
- Competing with cash buyers at auction or in a fast-moving market where a long financing contingency would lose the deal.
- Funding a purchase while a conventional loan, refinance or sale of another asset is still being processed.
- Pulling equity out of an already-owned property to fund a down payment, a renovation, or a time-sensitive opportunity.
- Situations where the borrower's tax returns do not reflect the real economics of the deal, such as a recently acquired business or a self-employed investor.
Before you borrow
Borrower considerations
The exit matters more than the entry
A short-term loan is only as safe as the plan to repay it. Before you borrow, be able to state specifically how the loan gets paid off — a sale, a refinance into longer-term debt, or cash from another source — and roughly when. Lenders will ask, and a vague answer is the most common reason a file stalls.
Cost is higher than bank debt, and that can still be the right trade
Private money is priced for speed and flexibility. Judge it against what the alternative actually is: not a bank loan you cannot get, but the deal you would lose or the carrying cost you would absorb while waiting. Run the numbers on the whole holding period, including points, interest, and any extension cost.
Equity is the cushion
These loans are sized against the value of the collateral, so the cash or equity you bring is what makes the structure work. Expect to contribute meaningfully to the capital stack, and expect the lender to order an independent valuation rather than take a purchase price at face value.
Short terms need a buffer
Renovations run long and sales take time. Ask up front how extensions are handled and what they cost, so a two-month overrun is a known expense rather than a default.
Read the prepayment and guaranty terms
Some loans carry minimum interest or prepayment provisions that change the maths if you exit early. Many require a personal guaranty even when the borrower is an entity. Both are negotiable items worth raising before you are at the closing table.
The process
What happens, step by step
Tell us about the deal
Share the property, the purchase price or current value, what you intend to do with it, how much you need, and how you plan to repay. A short conversation is usually enough to tell whether the structure fits.
Preliminary review
We look at the asset, the business plan and the capital you are bringing, and come back with the structures that are realistically available for a deal like yours.
Submit the file
Purchase contract or title evidence, a scope and budget if work is planned, entity documents, and a statement of the assets backing the deal.
Valuation and diligence
An independent valuation is ordered, title is reviewed, and insurance requirements are confirmed.
Terms and closing
Written terms are issued for your review. Once accepted, closing is coordinated with title and the loan funds.
Manage the exit
Through the term we stay in contact about the repayment plan so the refinance or sale is lined up well before maturity.
Questions
Private Money Loans FAQs
Is this hard money?
No, and the distinction matters. Traditional hard money is priced almost entirely on the collateral, with the lender's main question being what the property would fetch in a forced sale. The lending sources we place investor financing through underwrite the asset and the borrower: your completed project count and your credit score set both your leverage and your rate, from a published tier card. That is why the pricing sits well below typical hard money, and why a track record is worth so much on these programs. You can see the actual tiers on our loan programs pages.
What do you look at if you are not relying on my tax returns?
The property first: what it is worth now, what the plan will make it worth, and what it would sell for if the plan were abandoned. Then the plan itself and your track record carrying out similar projects. Then liquidity — whether you have reserves to cover carrying costs and overruns. Most lenders still check credit and will want to understand any significant derogatory history, even when income documentation is not the deciding factor.
How quickly can a private money loan close?
Faster than conventional financing, because the underwriting is narrower. The honest answer for any specific deal depends on how quickly a valuation can be completed, whether title is clear, and how fast you return documents — those three items, not the lender's appetite, set the timeline. Ask for a realistic date at the point terms are issued and plan your contract deadlines around it.
What will it cost?
Pricing on asset-based loans varies with the property type, the amount of equity in the deal, the length of the term and the borrower's experience, so a rate quoted before anyone has seen your file is not a real quote. We will give you written terms showing the interest rate, points, and every fee before you commit to anything.
Can I borrow through an LLC?
Entity borrowing is normal in this market and is often preferred. Have your operating agreement, formation documents and a current certificate of good standing ready, as they are usually required before closing. Note that a personal guaranty from the principals is commonly requested alongside the entity's obligation.
What happens if I cannot repay at maturity?
Speak to the lender early — well before the maturity date, not after it. Where a project is substantially on track and simply needs more time, an extension is often available for a fee. Where it is not, the options narrow considerably. The single most useful thing a borrower can do is raise a problem while there is still time to solve it.
Next steps
Other financing that may fit
Many projects use more than one of these in sequence — a short-term loan to acquire and improve, then longer-term financing to hold.
Fix-and-Flip Financing
Purchase and renovation capital in a single facility, with construction funds released in stages as the work is completed.
Learn more about Fix-and-Flip FinancingRental Property Financing
Longer-term financing for income-producing residential property, underwritten primarily on what the asset earns.
Learn more about Rental Property FinancingCommercial Real Estate Loans
Financing for income-producing and owner-occupied commercial property, underwritten on the asset, its tenants and its cash flow.
Learn more about Commercial Real Estate LoansConstruction & Development Financing
Ground-up and major redevelopment financing, advanced in stages against verified construction progress.
Learn more about Construction & Development FinancingTalk to us about your deal
Tell us the property, the plan and the timeline. We will tell you honestly whether we can help and what the realistic next step is.