Hard money loans off-market are best when speed matters and you have a clear exit plan (refi, sale, or long-term financing). Treat hard money like a bridge, not a lifestyle.
Typical hard money structure (conceptually)
- Short term (months, not years)
- Higher rate + points
- Rehab draws based on completed work
- Underwriting focused on asset value and exit feasibility
Hard money safety checklist
- Know your max holding cost and timeline with buffer.
- Confirm the draw process and inspection cadence before signing.
- Bind insurance early (vacant properties can be tricky).
- Have a Plan B exit (sell, partner, or private money refinance).