Lender guide
How to Choose a Hard Money Lender (Investor's Guide)
Hard money is priced for speed, not for cheapness. The right lender is the one whose leverage, draw process, and term actually fit your project. Here is how to judge them.
Most "best hard money lender" lists are written by a lender or by an affiliate paid to rank one. We do the opposite: we show you how to judge a lender yourself, so the answer holds no matter who is paying whom. Where we link to a lender, we say so plainly. See our disclosure.
The five things that actually separate hard money lenders
- Leverage on purchase and rehab. The best lenders fund a high share of the purchase and often the full rehab, capped at a percentage of the after repair value, commonly around 70 to 75 percent. More leverage means less of your own cash trapped in the deal.
- Rate and points, in context. Hard money runs well into the double digits with points up front. The rate matters less than you think on a short loan; what matters is the total cost over the months you actually hold it.
- The draw process. Rehab funds are released in draws as work is completed. A slow or rigid draw process can stall your project and your cash flow. Ask exactly how draws are requested, inspected, and funded.
- Term length versus your timeline. A twelve month loan on an eighteen month project is a trap. The term must comfortably outlast your rehab and any seasoning before you refinance out.
- Speed and experience requirements. Some lenders close in days and welcome first projects; others want a track record of completed flips. Match the lender to where you are.
A comparison you can fill in
Take any two lenders and complete this before you choose.
| Compare | Lender A | Lender B |
|---|---|---|
| Percent of purchase funded | ||
| Rehab funded and max percent of ARV | ||
| Rate and points | ||
| Term length | ||
| Draw process and timing | ||
| Experience required and days to close |
Compare current rates. These are starting points to research, not endorsements. Confirm terms on each lender website. Some links may be affiliate links; see our disclosure.
Established lenders to research
These are well-known names in investor lending. We list them as starting points to research, not endorsements, and you should confirm current terms directly, because programs change often. Our independent Rate and Terms Survey tracks the going ranges for hard money.
- Kiavi offers fix-and-flip and bridge products for investors alongside DSCR rental loans.
- New Silver is an online lender with fix-and-flip and ground-up construction financing.
- Other national names worth a quote include Lima One Capital, RCN Capital, and Groundfloor, among others.
Our standing rule. We update this guidance from the quarterly survey, disclose any affiliate relationship, and never let a referral fee change who we include or how we describe them.
Next, model the project on the BRRRR calculator, then read the full method in the hard money guide and fix-and-flip guide.