Private Money

Private money loans offer fast, flexible financing for borrowers who need an alternative to traditional bank mortgages. These loans are backed by private investors or lending groups rather than large financial institutions, making them ideal for time-sensitive transactions, unconventional properties, or borrowers with unique financial situations. If you’re facing a scenario where speed, flexibility, or creative structuring is more important than meeting rigid lending criteria, private money can provide a real solution—without the red tape.

What Is a Private Money Loan?

Private money loans—sometimes referred to as hard money loans—are short-term, asset-based loans provided by individual investors or private lending companies. Unlike traditional mortgage lenders who focus heavily on income verification, credit scores, and detailed underwriting, private lenders are more interested in the property itself and the potential for a strong return on investment.

This makes private money loans particularly useful for real estate investors, buyers who need to close quickly, or borrowers who may not meet standard lending requirements. These loans are commonly used for fix-and-flip properties, bridge loans, land purchases, or any situation where traditional financing isn’t feasible or fast enough.

Lisa Rioux works with a network of trusted private lenders and can help match you with the right one based on your goals, timeframe, and property type. Whether you’re navigating a complicated deal or just need faster funding than the banks can offer, private money may be the path forward.

When Private Money Makes Sense

Private money loans are ideal for scenarios that fall outside the comfort zone of traditional lenders. For example, if you’re purchasing a distressed property that won’t pass a conventional appraisal, need to close in a matter of days, or want to buy a property under your business name, private lending can make it happen.

These loans are also a go-to for experienced real estate investors who prioritize speed and leverage. Because approval is based on the property and the equity position—not on the borrower’s tax returns or credit file—private money opens doors that might otherwise remain closed. It’s about opportunity and access, not just ticking boxes on a checklist.

Even if you plan to refinance into a traditional loan later, private money can serve as a powerful bridge to secure the property first and worry about long-term financing once the dust settles. Lisa helps clients structure deals with both short-term and future goals in mind, so you’re not stuck with a plan that only works for the next few months.

How Private Loans Are Structured

Private money loans are typically short-term—anywhere from 6 months to 2 years—although some lenders offer longer terms depending on the project. They’re usually interest-only during the loan period, with a balloon payment due at the end. While the interest rates are higher than conventional loans, the tradeoff is speed, flexibility, and accessibility.

The loan amount is based primarily on the value of the property, not your income or debt-to-income ratio. In many cases, you can borrow up to 65-75% of the property’s value (or purchase price, whichever is lower). For fix-and-flip projects, some lenders will finance a portion of the rehab costs as well, based on the after-repair value (ARV).

Because there are fewer underwriting hurdles, private money loans can close in a matter of days—not weeks. That speed is often critical when trying to secure a competitive deal, negotiate with a motivated seller, or act fast in a bidding situation. Lisa coordinates all the moving parts and ensures your private loan is set up quickly and correctly from the start.

Benefits of Working with a Private Money Specialist

Not all private lenders are the same. Some focus on residential properties, others specialize in commercial or multi-family deals. Some require detailed exit strategies, while others offer more flexibility. That’s where working with someone like Lisa Rioux makes all the difference.

Lisa has longstanding relationships with reputable private lenders and knows which ones are best suited to your specific deal. She doesn’t just connect you and step away—she manages the full process, making sure the terms are fair, the paperwork is tight, and the timeline stays on track. You won’t be left figuring out the fine print or negotiating terms alone.

Because Lisa handles your file personally and keeps communication open, you’ll always know where things stand. That level of service is especially important with private money deals, where timing and detail can make or break an opportunity. Her goal isn’t just getting the loan closed—it’s making sure it works for you now and sets you up for what’s next.

Risks and Considerations

Private money loans offer clear benefits, but it’s also important to understand the tradeoffs. Interest rates are typically higher than bank loans—sometimes significantly. These loans are not meant to be long-term solutions, so having a clear exit strategy (like a refinance, sale, or property stabilization plan) is essential.

There may also be lender fees, origination points, and other costs involved that aren’t part of traditional mortgage structures. Lisa will help you review all the numbers upfront so there are no surprises. Her role is to make sure you’re informed, protected, and confident that the deal makes sense from both a short- and long-term perspective.

While private lending isn’t for everyone, it can be a smart and strategic tool for the right borrower in the right situation. Lisa’s job is to help you evaluate if—and how—it fits into your plan.