Question 1

What is a hard money loan?

Accepted Answer

A hard money loan is a short-term loan secured by real estate, funded by private investors rather than banks. Approval is based primarily on the property's value (asset-based), not the borrower's credit or income.

Question 2

When should I use a hard money loan?

Accepted Answer

When traditional banks can't approve you due to credit, income documentation, property condition, or timeline. Hard money is ideal for fix-and-flip investors, bridge financing, foreclosure purchases, or unique properties banks won't touch.

Question 3

How fast can hard money loans close?

Accepted Answer

Often 7–14 days. Some deals close in 3–5 days for experienced investors with established relationships. This speed is a major advantage over conventional financing.

Question 4

What are typical hard money loan terms?

Accepted Answer

Rates typically run 9–13%, with 1–3 points. Terms are short (6–24 months). LTV is usually 65–75% of ARV (after-repair value) for fix-and-flip, or 65–70% of current value for other properties.

Question 5

What is a bridge loan vs. hard money?

Accepted Answer

Bridge loans are a subset of hard money — short-term loans that 'bridge' you until you can secure permanent financing or sell a property. They're often used to buy a new home before selling the old one.

Question 6

What occupancy types are available for hard money loans?

Accepted Answer

Hard money loans are available for multiple occupancy types — including owner-occupied properties. Dan offers owner-occupied hard money loans structured as 30-year loans, giving borrowers the flexibility of long-term financing with the accessibility of asset-based approval. This is a significant advantage for owner-occupants who don't qualify for conventional financing but need a sustainable long-term mortgage solution.

Hard Money & Private Money Loans in Bakersfield

When Hard Money Makes Sense

Hard Money Loan FAQs

Need Fast Private Money Financing?