Hard Money Lending
Hard money lending is short-term, asset-based lending for real estate investors. The loan is approved mainly on the value of the property and the strength of the deal, not on your tax returns, so investors can buy, renovate or build quickly when a bank would be too slow or say no. Lend Private Money has provided hard money and private money loans to investors since 2003.
“Hard money” is a loan secured by a “hard” asset, here real estate. Because the property is the main security, a hard money lender cares most about:
Credit still matters, but it isn’t the whole decision the way it is at a bank.
Terms vary by lender. Here’s how Lend Private Money’s short-term programs are structured:
| Term | Fix and flip | Ground up construction |
|---|---|---|
| Loan amount | $50,000 – $25,000,000 | $50,000 – $2,000,000 |
| Leverage | Up to 90% of purchase + 100% of rehab, max 75% of ARV | Up to 100% of construction costs, 85% total loan to cost |
| Term | Up to 18 months | Up to 18 months |
| Rates | From 7.95%* | From 7.95%* |
| Recourse | Full recourse | Full recourse |
See fix and flip loans and ground up construction loans for full details, or estimate your loan with the hard money loan calculator.
*Rates and terms depend on the property, your experience and underwriting approval.
People use the two terms interchangeably, and both are asset-based loans to investors. The usual difference is who’s lending:
| Hard money | Private money | Bank loan | |
|---|---|---|---|
| Lender | Professional lending company | Often an individual or small group | Bank or credit union |
| Approval based on | Property value and the deal | The deal and the relationship | Your income, credit and debt ratios |
| Speed | Fast | Fast | Slow |
| Term | Usually 6–24 months | Varies | 15–30 years |
| Cost | Higher than a bank | Varies | Lowest |
| Best for | Flips, construction, quick purchases | Investors with a personal network | Owner-occupied homes and stable rentals |
Lend Private Money is a professional private lender, so we sit between the two: hard money speed and structure, with loan programs that also cover long-term rentals.
In real estate, soft money usually means conventional, lower-cost financing with longer terms and stricter approval, like a bank mortgage. Hard money costs more but is faster and more flexible. Many investors use both: hard money to buy and renovate, then a long-term loan such as a DSCR loan to refinance and hold. That’s the BRRRR method.
It’s usually not the right tool for a home you’ll live in. Lend Private Money makes business-purpose loans on investment properties only.
FAQs
Hard money lending is short-term, asset-based lending where the loan is approved mainly on the value of the real estate securing it, rather than the borrower’s income.
They’re very similar. Both are asset-based investor loans. Hard money usually refers to professional lending companies, and private money often refers to individuals lending their own funds.
Most are short term, typically 6 to 24 months. Lend Private Money’s fix and flip and ground up construction loans have terms up to 18 months.
No. Lend Private Money only makes business-purpose loans secured by investment properties.
Have a deal? Apply for a hard money loan. In Florida? See hard money lender in Florida.
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