What is private money financing?
Private money is a broad term for financing funded through private lending sources. In real estate investing, it often describes shorter-term loans focused on the property, the transaction, and the plan to repay. Hard money is another term you may hear; the actual agreement matters more than the label.
When it may be worth exploring
A property needing substantial work, an investment acquisition, or a transitional project may call for financing different from a completed rental mortgage. I will review your intended use, property condition, purchase timing, and available funds to help identify options worth comparing.
Speed is one factor, alongside total cost and repayment. We will discuss what the closing process actually requires, including valuation, title, documentation, and any project review.
Compare the complete cost
Review the interest rate, points, closing expenses, draw or inspection charges, extension provisions, and any prepayment terms. A smaller initial payment may leave a substantial balance due at maturity. Put that repayment into your project spending plan from the beginning.
Give the repayment plan as much attention as the purchase
Will you sell the property, refinance into longer-term rental financing, or repay from another documented source? We will discuss the expected timing and what happens if construction, leasing, or a sale takes longer. A future refinance depends on the requirements and market conditions at that time.
A CONVERSATION BEFORE YOU COMMIT
Bring me the property and the repayment plan.
Private money deserves a clear look at the full picture: the property, project timeline, cash needed, costs over the life of the loan, and what will pay it off. I will help you ask the right questions before you move forward.
Compare related investor options
For an existing property you plan to renovate, explore fix-and-flip financing. For a rental you plan to hold, compare DSCR and conventional options. For a new build, review ground-up construction financing. I will help you match the financing to your intended use.
Prepare for a useful first conversation
Share the property address, contract or estimated value, current financing, scope of work if applicable, experience, and money available for closing and carrying costs. If a deadline is driving the request, bring that date and the reason behind it. We can organize the questions that need answers before you move forward.
Your questions answered
Are private money and DSCR loans the same?
No. Private money describes a funding approach, while DSCR describes qualification using rental income. Their structures and purposes may differ; compare the actual terms.
Do these loans require a repayment plan?
Yes. We review how and when you intend to repay, along with the property and your finances. A short maturity date deserves particular attention.
Can I use this page for a home I will live in?
Tell me about your intended occupancy first. Owner-occupied financing follows different requirements and deserves its own review.
Can you give me a rate before reviewing the project?
A useful comparison needs the property, loan amount, scope, timeline, and relevant borrower information. I will help you review the available terms for that scenario.
Let's review your next opportunity
Bring the address, your project plans, available funds, and the timeline you have in mind. I will help you compare financing, organize the required information, and understand the next step. Your complimentary 30-minute discovery call is a place to start.
Return to the Investor Hub or explore our complimentary investor guides.