Hard money and private money for Columbus flips

Why conventional loans do not work here

An assignable contract with a three week closing on a house that does not have a working kitchen is not something a bank underwrites. Conventional lenders need an appraisal, a habitable property, and 30 to 45 days. Off-market deals need cash, or a lender who behaves like cash.

How hard money works

A hard money lender lends against the deal, not against you. Typical terms in central Ohio in 2026: 85 to 90 percent of the purchase price plus 100 percent of the renovation budget, capped at around 70 to 75 percent of ARV, at 10 to 13 percent interest with two to three points at closing, on a six to twelve month term. Renovation funds are released in draws as work is completed and inspected.

On a 120,000 purchase with 50,000 of repairs and a 235,000 ARV, expect to bring roughly 15,000 to 25,000 of your own cash to closing, and expect the loan to cost 12,000 to 18,000 over a six month hold. Those costs need to be in your numbers, and they are in the calculator on our property pages.

Getting approved fast

Get pre-approved before you find the deal. A good lender will vet you once, with a credit check, proof of funds for the down payment and reserves, and a look at your experience, then fund individual deals in five to ten days. Have your entity documents, a bank statement, and a contractor bid template ready. When you send us an offer with a lender's pre-approval letter attached, you go to the front of the line.

Private money

Private money is a loan from a person rather than a company: a relative, a colleague, another investor with idle cash. Terms are whatever you agree, commonly 8 to 12 percent interest, no points, interest only, secured by a mortgage on the property. It is cheaper and faster than hard money once the relationship exists, and slower to set up the first time.

Either way, get it in writing, record the mortgage, and use a title company for every dollar. A handshake loan on a flip is how friendships end.

Lenders we see closing in Columbus

We do not take referral fees from lenders and we do not recommend one over another. Ask us when you make an offer and we will tell you who has closed on our deals recently and on what terms.

Written by Solomon Sparks, Closing Columbus. General information for investors, not legal or financial advice. Talk to an Ohio attorney or your lender about your own situation.