Private Money —
speed wins deals.
When conventional financing is too slow, too strict, or doesn't fit the deal — private money lenders close in days. Fix-and-flip, bridge financing, and ground-up construction capital structured around your exit strategy, not your W-2.
- ✓Are flipping a property and need fast acquisition and rehab capital
- ✓Need bridge financing to acquire before your current property sells
- ✓Are building ground-up and need construction draw financing
- ✓Found a time-sensitive distressed deal that won't survive a 30-day close
- ✓Are buying a property that doesn't qualify for conventional (condition, occupancy)
- ✓Have a clear exit strategy — refinance into DSCR or sell within the loan term
- →You are buying a stabilized rental — DSCR offers lower rates for long-term holds
- →You plan to owner-occupy the property — residential programs offer much lower rates
- →Your project timeline exceeds 24 months — permanent financing may be more appropriate
- →Your deal has no clear exit — private money without an exit plan is very high risk
Everything you need to
know about private money.
The most common private money product. We fund acquisition plus renovation costs in a single loan, with rehab funds released in draws as work is completed. Underwriting is based on the After Repair Value (ARV).
- Up to 90% of purchase + 100% of rehab (within 75% ARV)
- Renovation draws released after inspection milestones
- Interest-only payments during the project
- Typical terms: 12–24 months with extension options
Bridge loans fill the gap between where you are and where you're going. Bridge to a permanent DSCR or conventional loan, or bridge while your current property sells. Rates are higher than permanent loans but the flexibility is unmatched.
- Typical terms: 12–24 months
- Cross-collateralization available
- Acquisition and cash-out refinance options
- Properties in any condition considered
New construction financing for residential and small commercial projects. Funds are released in draws as construction milestones are reached and verified by inspections. Exit into permanent financing at certificate of occupancy.
- Lot acquisition and construction cost financing
- Draw schedule aligned with construction phases
- Interest-only on drawn funds during construction
- Exit: sell at completion or refinance to permanent loan
Private money rates are higher than conventional — priced for risk, speed, and flexibility. Typical programs are asset-based, meaning the property is the primary collateral and personal income is not the main qualifier.
- Rates: typically 8.5%–12.5% interest-only (market dependent)
- Origination points determined by Loan Amount, LTV and Experience
- Credit score: 600+ (some lenders less focused on credit)
- Experience bonus: seasoned flippers get better terms
Your private money loan
with Smart Mortgage.
Share the address, purchase price, rehab budget, and your ARV estimate. We evaluate the deal against our private lending relationships within 24 hours and provide indicative terms.
Most private money lenders order a Broker Price Opinion (BPO) or desktop appraisal — much faster than a full appraisal. For larger deals, a full ARV appraisal may be required.
Once the property analysis clears, the lender issues a term sheet. Private money underwriting is minimal — property strength and borrower exit strategy drive approval decisions, not income documentation stacks.
Private money closings can happen in 5–10 business days. We coordinate with the title company to meet your timeline. Most fix-and-flip investors are on-site within two weeks of submitting the deal.
Common private money
questions answered.
Found a deal? Let's get it funded fast.
Submit your deal today and get indicative terms within 24 hours. Speed is the edge.