How Hard Money Loans Work
From deal submission to funded property — here is the full process with no surprises.
Hard money loans move faster than any other form of real estate financing. The reason is simple: private lenders underwrite the deal, not the borrower. Once they understand the property, the numbers, and the exit plan, they can move to closing quickly. Here is a step-by-step look at how the process works from your first inquiry to the day funds arrive.
Submit Property Details
Start by telling us about the deal. We need the property address, the purchase price or current value, the loan amount you need, your estimated renovation budget if applicable, and your exit strategy — are you planning to flip and sell, hold and rent, or refinance into permanent financing?
You do not need a lengthy loan application at this stage. A brief deal summary is enough to get the process started. We will tell you within hours whether the deal fits our lenders' parameters and what kind of offer to expect.
For fix-and-flip loans, we will ask for a scope of work or itemized renovation budget as well. For new construction, preliminary plans and a construction timeline are helpful early on.
Fast Approval Based on Property Value
The lender evaluates the deal based on the property's current value, the after repair value (ARV), the loan-to-value ratio, market conditions in the area, and the strength of your exit plan. Your personal credit score is checked but rarely determines the outcome — the deal itself does.
An appraisal or broker price opinion (BPO) is typically ordered at this stage to confirm value. This is done quickly — usually within a few days — and is part of the loan process, not a precondition you have to arrange separately.
Once the lender is satisfied with the numbers, they issue a term sheet. This document outlines the loan amount, interest rate, points, term, and conditions of the loan. You review it, negotiate if necessary, and sign when you are ready to move forward.
Close in Days, Not Months
Once the term sheet is signed, the lender orders title work. For a straightforward acquisition, title can be cleared in a few days. For more complex situations — estates, multiple liens, partial interests — it may take a bit longer, but we push for speed at every stage.
Most hard money closings happen within 5 to 14 business days of deal submission. For repeat borrowers with established relationships, we have closed deals in as few as 3 to 5 days. Closing happens through a title company or real estate attorney just like a conventional purchase.
At closing, you sign the loan documents and your down payment is deposited. The lender funds the remainder of the purchase price directly to the seller or title company.
Fund Your Project
For fix-and-flip loans, renovation funds are typically held in escrow and released in draws as work is completed. You complete a phase of renovation, submit documentation (photos, receipts, or an inspector sign-off), and the next draw is released. This draw schedule protects both you and the lender.
For new construction loans, draws are similarly tied to construction milestones — foundation, framing, mechanical rough-in, and so on. The lender sends an inspector to verify each milestone before the next draw is funded.
Bridge loans and investment property loans are typically funded in full at closing since there is no construction phase. You receive the full loan amount, begin your holding plan, and make monthly interest payments until you refinance or sell.
Have a deal ready to move on?
Submit your deal details and we will get back to you with a fast response.
Apply Now