US 2028 Private Money Rate
Hard money 2028: 10-15% interest + 2-5 points + 6-18 month term. Used for fix-and-flip + bridge + non-conforming. Speed + flexibility vs conventional.
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Private money (hard money) lending: 10-15% interest + 2-5 origination points + 6-18 month term. Used for fix-and-flip investments, bridge loans, non-conforming property purchases. Speed (close in 7-14 days) + flexibility (asset-based vs income) outweighs cost when conventional lending too slow or denied.
When Hard Money Wins
Distressed property auction: cash close in 14 days. Conventional 30-45 days = lose deal. Fix-and-flip: speed of close + lender accepts ARV (after-repair value) vs current. Foreign national or non-conforming borrower with no W-2 income.
Cost vs Conventional
12% × 12 months = 12% + 3 points = 15% total cost. Conventional 7% × 12 months = 7% + 1 point = 8%. Hard money 2x cost. Only justified by speed savings + deal opportunity cost not available via conventional.
Exit Strategy Required
Hard money is short-term — exit = sell property OR refi to conventional. Have an exit before borrowing. Default on hard money = lose property faster than conventional (judicial foreclosure not always required; lender often forecloses non-judicially via deed-in-lieu).
Last updated May 2026. Sources: Investopedia.