Hard Money and Fix and Flip Loans for Real Estate Investors

Phil Hagey, a loan officer with West Capital Lending, helps real estate investors find short-term hard money, fix and flip, and private money financing for renovation projects, value-add properties, and deals that a conventional loan may not fit.

Hard money and private money lenders focus mostly on the property and your plan for it, including the after-repair value, rather than only on your personal income. These are business-purpose loans for investment property only. They are not for a home you live in.

Terms vary a lot between private money lenders. Through West Capital Lending's network of more than 160 lenders, I compare options so you can see real choices, and I'll help you plan your exit, whether that's a sale or a refinance into a long-term loan like a DSCR loan.

Who it fits

• Fix and flip investors buying distressed properties
• Investors purchasing properties that don't qualify for conventional financing yet
• Investors who need rehab funds as part of the loan, depending on the lender
• Builders and value-add investors with a clear exit plan

Not for owner-occupied homes. Business-purpose investment property only.

Understand the trade-offs

• Hard money costs more than conventional financing. Expect higher pricing, up-front lender fees and a larger down payment. I'll lay out every cost in your estimate.
• Terms are short, and the full balance is usually due in one payment at the end. If the sale or refinance falls through, you could lose the property to foreclosure.
• Renovations that run long or over budget are the most common reason deals get squeezed. Build in a cushion.
• Some lenders charge a fee for early payoff. We'll check before you sign.

When it may not be the right fit

If you don't have a realistic exit plan, plan to hold the property long-term, or the property already qualifies for a standard investment loan, a lower-cost option such as a DSCR or conventional investment loan may serve you better.

How I help

• I review your deal: purchase price, rehab budget, and after-repair value
• I compare hard money, fix and flip, and private money lenders whose guidelines fit your project
• I give you an estimate so you can underwrite the deal with clear numbers
• I help map out your exit, including a refinance into a DSCR loan when it fits

Frequently asked questions

What is a hard money loan?

A hard money loan is a short-term, asset-based loan from a private money lender, used mostly by investors to buy or renovate property. Phil Hagey helps investors compare hard money, fix and flip, and private money lenders and terms.

What's the difference between hard money, fix and flip, and private money loans?

They overlap. Private money describes who funds the loan, a private lender rather than a bank. Hard money describes the asset-based approach, where the property and your plan matter most. Fix and flip loans are hard money or private money loans built for buying, renovating, and reselling a property.

Can I use a hard money loan to buy a home to live in?

No. Phil's hard money, fix and flip, and private money options are business-purpose loans for investment property only, not owner-occupied homes.

Do fix and flip loans cover renovation costs?

Some fix and flip lenders can include rehab funds, often released in draws as work is completed, depending on the lender. Phil compares lenders to find programs that may fit your budget and timeline.

What are the risks of a hard money loan?

Hard money costs more than conventional financing, terms are short, and the full balance is usually due in one payment at the end. If the sale or refinance falls through, you could lose the property to foreclosure. Phil reviews these trade-offs before you commit.

How do I get out of a hard money loan?

Most investors either sell the property or refinance into long-term financing, such as a DSCR loan. Phil Hagey helps you plan that exit before you close.

Hard money, fix and flip, and private money loans are business-purpose loans for investment property and are not available for owner-occupied homes. Program terms vary by lender and state. This is not a commitment to lend.