What is Hard Money?
Hard money is short-term financing secured by an investment property. Underwriting focuses heavily on the property, project, leverage, and exit strategy. Borrower credit, experience, liquidity, and other factors may also be considered depending on the lender.
Common uses
Fix & Flip
Purchase and renovate a property for resale.
BRRRR
Acquire and rehab a rental before refinancing into longer-term financing.
Bridge Financing
Temporary capital while the investor completes a sale, refinance, rehab, or other transition.
Fast-Close Purchases
Investment transactions where conventional financing may be too slow or the property may not currently qualify.
Terms you will hear
- ARV: After-Repair Value - the estimated value after the planned renovation.
- LTV: Loan-to-Value - loan amount compared with property value.
- LTC: Loan-to-Cost - loan amount compared with total project cost.
- Rehab budget: the planned renovation cost.
- Exit strategy: how the short-term loan will be repaid, usually through a sale or refinance.
The exit matters
Pricing and leverage
Rates, points, loan size, leverage, rehab funding, borrower requirements, and closing speed are deal-specific and vary by lender. A complete property and borrower submission is the best way to determine fit.
Want us to look at a possible fit?
Submit the property, financing need, timeline, and basic deal information. Program terms and approval are determined by the selected third-party lender and the specific transaction.
Submit a Deal for ReviewEducational information only. Loan programs, leverage, rates, documentation, property eligibility, and closing timelines vary by lender and transaction. Deal Support Network does not provide legal, tax, investment, or financial advice.