The Hard Money Loan Alternative
Hard money gets you in the door, but it is expensive money on a short fuse. We do the same job with long-term financing from 5.75%, cash-out up to 75-80% LTV, minimal docs, and a close measured in days.
Hard Money vs Adler Capital
| Hard money | Adler Capital | |
|---|---|---|
| Typical rate | 10-12% | From 5.75% |
| Term | 6-24 months, balloon | Up to 30 years |
| Leverage | ~50-65% | Up to 75-80% |
| Cash-out | Limited | Up to 75-80% LTV |
| The clock | Always ticking | Long-term, predictable |
| Loan-count cap | Often limited | Unlimited |
| Docs | Minimal | Minimal |
When to Walk Away From Hard Money
Hard money earns its place at the start of a deal: it is fast, asset-based, and does not care about your tax returns. The problem is what it costs to keep. At 10 to 12 percent with a balloon looming, it is built to be temporary, and every month you hold it cuts into your return.
The moment a property is stabilized, you do not need that pricing anymore. A long-term DSCR loan does the same asset-based, low-doc job at roughly half the rate, on a 30-year term, with cash-out up to 75-80% LTV. If you still need speed on the acquisition, we move fast too - the difference is you are not locked into bridge pricing afterward.
The simplest move if you already have a hard money note is to refinance it into long-term debt, and the most valuable byproduct is the cash-out that funds your next deal. As long as there is real equity, we can usually find the structure.
Hard Money Alternative FAQ
What is the best alternative to a hard money loan?
For a property you intend to hold or have already stabilized, a long-term DSCR loan is the strongest alternative. It does what hard money does - qualifies on the asset with minimal docs - but at roughly half the rate, with a 30-year term instead of a balloon, and with cash-out up to 75-80% LTV.
Is your financing actually cheaper than hard money?
For long-term debt, yes, meaningfully. Hard money typically runs 10-12%. Our DSCR rates currently start around 5.75% on strong files. The savings on a stabilized property are substantial and immediate.
I still need speed on acquisitions. Can you move fast like hard money?
Yes. We close in as few as 5 days when title is clean and the appraisal is back. You get hard-money speed without locking yourself into hard-money pricing for the long haul.
What if my deal does not fit a standard box?
We have capital for unusual situations - complex entities, odd title, value-add in progress. For tougher files we have programs up to 80% leverage, and even no-credit options at lower leverage. As long as there is real equity, there is usually a path.
I already have a hard money loan. What is the move?
Refinance it. Once the property is stabilized and leased, we replace the hard money note with long-term DSCR debt, drop your rate, and let you pull equity back out. See our hard money refinance page for the full playbook.
Stop overpaying for short-term money
Get a long-term rate on the property you already own, or fast financing on the next one. Minimal docs, no loan caps.