Hard Money Loans. Funded by you, secured by real property.

What hard money lending actually is

The term comes from the older "hard collateral" distinction: lending decisions made primarily on the asset, not on the borrower’s personal financials. Banks underwrite the borrower first — debt-to-income ratio, employment history, FICO. Hard money lenders underwrite the property first — loan-to-value, comparable sales, recoverable resale value if the loan ever has to be enforced.

That distinction is what makes the product work for both sides. The borrower — usually a real estate operator, builder, or investor — gets capital in days rather than weeks, with execution that does not depend on a 30-year fixed mortgage underwriting calendar. The lender gets a recorded lien on a defined parcel, conservative LTV, and short duration. The pricing reflects that asymmetry.

How hard money loans differ from bank financing

Hard money versus conventional mortgage product

Attribute	Hard Money (ReV)	Conventional Bank Loan
Primary underwriting basis	Asset / LTV	Borrower / DTI / FICO
Time to close	5–15 business days	30–60 days
Typical term	5–12 months	15–30 years
Rate range	12% APR target	6%–8% (Q1 2026 indicative)
Use case	Acquisition, bridge, completion, lot inventory	Owner-occupied or long-hold financing
Investor exposure	Direct, recorded lien	N/A (bank holds)

The borrower side: who actually takes hard money

The fastest way to evaluate any hard money lender is to look at who borrows from them. ReV underwrites loans to four borrower archetypes, in order of frequency.

Operators acquiring distressed or off-market property. The deal needs to close before a 30-day mortgage cycle would allow. The borrower has equity to deploy and a documented stabilization plan. Hard money bridges the acquisition; conventional financing or sale takes them out.

Builders financing lot inventory or short construction phases. A builder who controls multiple lots may use short-term hard money to roll inventory while presale activity catches up. The collateral is the lot or the in-progress structure; the exit is presale or refinance into a construction loan.

Investors completing a 1031 exchange under tight timing. The exchange clock is unforgiving. A bridge loan against the replacement property can preserve the exchange when conventional financing will not close in time.

Property owners needing liquidity against equity. A homeowner with substantial equity but a temporary cash need may take a hard money loan against the property to fund a separate purchase, business need, or estate-driven event. We approach these carefully and do not write owner-occupied consumer mortgages.

The investor side: how the position actually works

From the investor’s vantage, the mechanics are straightforward.

1. ReV underwrites the deal, structures the note, and presents it to investors with capital available.
2. You review the deal package: property summary, valuation, LTV, borrower background, exit plan, lien position.
3. You commit funding. Your capital is wired to closing escrow.
4. The deed of trust is recorded at the county with you (or your entity) named as beneficiary. The promissory note is executed in your favor.
5. ReV services the loan: payment collection, escrow oversight, insurance and tax monitoring, payoff demand.
6. At maturity (or earlier payoff), principal returns to you along with any final accrued interest.

Loan structures we originate

Bridge loan against improved property

Six-to-twelve-month financing against a single-family residential, small multifamily, or light commercial asset. Exit is refinance, sale, or stabilization-then-refinance. LTV typically capped at 65% of as-is value or 70% of as-stabilized, whichever is lower.

Acquisition + light rehab

Combined loan for acquisition plus a short rehab budget. Funds disbursed in phases against draw inspections. Common for fix-and-flip operators with multi-deal track records. Total loan held against ARV with conservative coverage.

Lot inventory financing

Loans against finished or near-finished residential lots held in inventory. Often used by builders or land bankers managing presale velocity. Term tied to expected absorption.

Short bridge against land

First-position lending against entitled or pre-entitled land where the exit is sale to a developer or vertical takeout into construction financing. LTV cap held lower than improved property because resale velocity on raw land is more variable.

What the legal documents actually look like

At funding, the document set is consistent across loan types.

• Promissory note — the borrower’s written promise to pay, executed in your favor
• Deed of trust — the recorded security instrument creating the lien
• Title commitment — the title insurer’s analysis of the property’s recorded encumbrances
• Lender’s title insurance policy — protects the recorded lien position
• Hazard insurance binder — with the lender named as additional insured
• Loan summary — one-page recap of terms, exit, and contact for servicing

You hold this document set the entire time the note is outstanding. ReV maintains the working copies for servicing purposes.

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