Hard money, private lending, DSCR, bridge loans — the financing options that let investors move fast, close on distressed properties, and fund rehabs without conventional bank red tape. Here is every loan type, how to qualify, what it really costs, and how to find the right lender.
Hard money, DSCR, bridge, private, construction, and mezzanine — each serves a different investor need at a different stage of a deal. Know which one fits before you call a lender.
Short-term, asset-based loans funded by private lenders or lending companies. Approval is based on the property's after-repair value, not your income. The go-to for fix and flip and value-add acquisitions.
Debt Service Coverage Ratio loans qualify based on the property's income vs mortgage payment — not your personal income or W-2s. The investor's alternative to conventional mortgages for rental properties.
Short-term financing that bridges the gap between acquiring a property and securing permanent financing or selling. Used when timing matters more than rate — stabilize the asset, then refi out.
Capital from individual private investors — friends, family, high-net-worth contacts, or private investor networks. Terms are negotiable. Rates can be lower than hard money. Relationship-driven, not institution-driven.
Funds ground-up construction or major gut renovations on a draw schedule — money is released in phases as work is completed and inspected. Higher complexity, higher potential returns.
Fills the gap between the senior loan and equity in a deal structure. Higher risk to the lender means higher cost to the borrower — but allows investors to close deals with less cash out of pocket.
Knowing when to use each type of financing is one of the most important skills a real estate investor or agent can develop.
| Factor | Hard Money | Conventional | DSCR | Private Money |
|---|---|---|---|---|
| Approval Basis | Property value / ARV | Borrower income + credit | Property cash flow | Relationship + deal |
| Credit Score | 620+ (flexible) | 680–740+ required | 640+ typical | Negotiable |
| Income Docs | Not required | Full W-2 / tax returns | Not required | Negotiable |
| Close Speed | 5 – 14 days | 30 – 60 days | 14 – 21 days | Days |
| Distressed Property | Yes — preferred | Rarely (habitability reqs) | No — must be rent-ready | Negotiable |
| Interest Rate | 9% – 14% | 6% – 8% | 7% – 10% | 6% – 12% |
| Best Use | Fix & flip, BRRRR buy | Long-term primary / rental | BRRRR refi, rental hold | Any — relationship-driven |
| # of Properties | Unlimited | 10-property cap (Fannie) | Unlimited | Unlimited |
Before you call a lender, understand your true cost of capital. Here's a real-world fix and flip breakdown.
Gross profit at $285,000 ARV: $105,000. After rehab ($45k) and all financing/hold costs ($33,750): Net profit = $26,250 — 14.6% ROI on invested capital in 6 months. Run this deal through the AI Flip Analyzer to model your actual numbers before you commit.
REIA (Real Estate Investor Association) meetings are where investors and private lenders actively network. Show up, talk deals, and build relationships before you need them. The best lender introductions come from other investors who have already closed with them.
Platforms like Kiavi, RCN Capital, Lima One, and Backflip let you get quotes from multiple lenders with one application. Good for benchmarking rates and terms. Still verify each lender independently before signing anything.
Experienced mortgage brokers who work with investors often have relationships with hard money lenders and private capital sources. They earn their fee by saving you the legwork and vetting the lenders for you. Worth having one on your team.
High-volume contractors who work with investors constantly know which lenders are funding deals in your market. They want their clients to close — so they pay attention to who's lending and who isn't.
Agents who specialize in investor clients often have go-to lender relationships. A good investor-focused agent is a deal-flow hub — they see what's working and who's funding deals. Build the relationship before you need a lender referral.
Elite DFY clients get access to David J. Moore's vetted lender network — private money sources, hard money connections, and DSCR lenders who understand investor deals. No cold calls, no rate shopping guesswork.
A starting point — not an endorsement. Always verify terms, reviews, and licensing independently before committing to any lender.
One of the largest hard money lenders in the US. Fast online application, transparent rates, strong repeat borrower program. Specializes in fix and flip and rental bridge loans.
National hard money and DSCR lender known for strong customer service and broad loan products — fix and flip, BRRRR, new construction, and multi-family bridge.
Wholesale lender working through brokers and direct borrowers. Competitive rates on fix and flip, 30-year DSCR rentals, and multi-family bridge. Strong for experienced investors.
Short-term real estate loans funded by individual investors. Unique model that can mean competitive rates for borrowers. Good option for smaller deals and first-time hard money borrowers.
Specialist in long-term DSCR rental loans. No income verification, no employment check — qualification is based entirely on the property's rental income. Ideal BRRRR exit refi lender.
Modern hard money lender with a free mobile app for deal analysis, comps, and loan management. No upfront lender fees. Apply, track draws, and manage your flip all in one place. Strong option for tech-forward investors who want speed and transparency.
⚠ Directory listings are for informational purposes only. ToInvested does not guarantee lender availability, rates, or terms. Always verify independently. Not financial advice.
Investor clients don't just need an agent who can find properties — they need an agent who understands how they fund deals. When you can say "I know a solid hard money lender for fix and flip at 11% with 5-day close," you become the agent they call first and refer to everyone they know.
Build relationships with 2–3 vetted hard money lenders and 1–2 DSCR lenders. You become the hub of your investor client's deal ecosystem — not just the door opener.
Run your deal through the AI analyzer first. Know your ARV, profit, DSCR, and cash-out before you talk to a single lender. You'll negotiate better, close faster, and avoid the deals that look good on the surface.
Not financial or legal advice. Always consult qualified professionals before making financing decisions.