Private Money Loan
Speed and flexibility from private capital.
Short-term financing from private capital sources, ideal for time-sensitive or non-traditional deals.
What is a Private Money loan?
Private money (or hard money) loans are short-term, asset-based loans funded by private investors or funds. They emphasize speed, flexibility, and property value over borrower documentation.
Designed for
Real estate investors, house flippers, and buyers who need to close quickly or fund non-traditional projects.
Why choose it
When speed and flexibility matter more than the lowest possible rate, private money delivers.
Common use cases
- ◆House flips (fix-and-flip)
- ◆Bridge loans between properties
- ◆Auction purchases requiring fast closing
- ◆Distressed or non-conforming properties
Built for borrowers who look like this.
House flippers
Short-term project financing with fast draws.
Bridge buyers
Between selling and buying.
Auction buyers
Need certainty of funds and quick closes.
Investors
Purchasing properties that don't fit conforming underwriting.
The advantages.
Fast closings
Days to weeks, not months.
Flexible underwriting
Focused on the property and exit strategy.
Property-first
Less emphasis on borrower income documentation.
Entity-friendly
LLCs and corporations widely permitted.
Things to weigh.
Higher rates
Priced meaningfully above conventional programs.
Short terms
Typically 6–24 months.
Origination fees
Points and fees are common.
Exit-strategy dependence
Sale or refinance plan is central.
What lenders generally look for.
Requirements vary based on lender guidelines and borrower qualifications. The below is educational — not a commitment or offer of credit.
- Property focus
- Underwriting emphasizes property value and exit
- Term
- Typically 6–24 months
- Down payment / equity
- Substantial equity or down payment usually required
- Documentation
- Streamlined vs. conventional
Answers to what borrowers ask most.
How fast can private money close?
Deals commonly close in days to a few weeks.
What credit score is required?
Some private lenders are credit-flexible; others require strong scores.
Are rates significantly higher?
Yes, typically well above conventional pricing.
How long is the loan term?
Short-term, typically 6 to 24 months.
What is an exit strategy?
The plan to repay — usually a sale or refinance.
Can I use private money for a primary residence?
Programs vary; investment use is more common.
Are interest-only payments common?
Yes.
Do I need experience as an investor?
Some lenders require experience, especially on flips.
Can I close in an LLC?
Yes, common.
What happens if my exit is delayed?
Extensions may be available, often with additional cost.
Private Money Financing Guide
Speed, flexibility, and cost of private capital.
Run the numbers.
Educate yourself.
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