Private Money Loans for Commercial Real Estate (2026)
Commercial real estate investors who get turned down by banks for a mixed-use deal, a land acquisition, or a BRRRR refinance still have a path to closing: private money loans built around the asset and the deal, not a W-2 or three years of tax returns.
TL;DR
- Private money loans for commercial real estate close in 10-14 days versus 45-60 for bank financing in 2026.
- Bridge loans for BRRRR-strategy investors typically run 65-75% LTV with 12-24 month terms - Consider for value-add deals.
- Hard money for land acquisition and development skips DSCR underwriting entirely - Buy for shovel-ready sites.
- Mixed-use commercial loan options blend residential and commercial income - Consider when zoning is split.
- Avoid private lenders quoting no defined exit or refinance path past 24 months.
Why this matters
Banks underwrite commercial real estate on global cash flow, tax returns, and seasoning requirements that can take 60 days to clear committee. Investors moving on a distressed multifamily deal or a land parcel with a 30-day close clock don't have that runway.
Private money loans for commercial real estate price on the asset: after-repair value, rent roll, or projected stabilized income. LoanGuys structures these programs specifically for investors who need speed and flexibility a bank branch can't offer, and 2026 underwriting on private capital still favors deal quality over borrower documentation.
Who this is for
This guide is for commercial real estate investors buying value-add multifamily, mixed-use, land, or transitional assets who need capital in weeks, not months. If you're self-employed, hold title in an LLC, or your last two tax returns don't reflect the deal's real cash flow, private money is built for your file. First-time bank borrowers with a clean W-2 and a stabilized triple-net lease are usually better served by conventional commercial financing.
What to look for in private money loans for commercial real estate
Speed to close
A private lender who can't close inside 14 days isn't offering a meaningful advantage over a bank. Ask for a term sheet timeline in writing before you tie up earnest money, because 2026 hard money programs routinely fund in 10-14 days when title and insurance are ready on day one.
Underwriting flexibility
Commercial private money should underwrite the deal, not your personal debt-to-income ratio. Look for programs that qualify off projected rents, a signed lease, or an appraiser's stabilized income estimate rather than requiring two years of business tax returns.
Loan-to-value and leverage
Most private commercial lenders cap leverage between 65% and 75% of purchase price or as-completed value. A program advertising 90% LTV on a commercial asset in 2026 usually hides the gap in points, junior liens, or a personal guarantee stack that erases the flexibility you came for.
Property type coverage
Mixed-use, land, non-warrantable condo conversions, and rural commercial parcels get declined by most conventional desks. Confirm the lender actually closes your property type before you apply - a generalist private lender who says "we do everything" often means "we haven't done this."
Exit strategy and refinance path
A bridge or hard money loan is a 12-to-24-month tool, not permanent financing. The lender should walk you through the refinance path - typically into a DSCR loan once the property is stabilized - before you close, not after your interest reserve runs dry.
Top picks for commercial real estate investors
Bridge loans for BRRRR-strategy investors - the workhorse pick. These programs run 65-75% LTV with 12-24 month interest-only terms, built for investors buying distressed commercial or multifamily assets, rehabbing, and refinancing out. If your deal has a clear value-add thesis and a realistic stabilization timeline, bridge loans for BRRRR-strategy investors are the Buy.
Hard money for land acquisition and development - the ground-up specialist. Land deals get declined by nearly every conventional lender and most DSCR programs, since there's no rent roll to underwrite yet. Private lenders who fund hard money loans for land acquisition and development price off entitlement status and exit comps instead - Buy if you have a permitted or near-permitted site, Consider if entitlements are still 6+ months out.
Mixed-use commercial loan options - the flexible middle ground. A retail-ground-floor-with-apartments-above deal confuses bank underwriters who want a single, clean asset class. Programs built as best commercial loan options for mixed-use properties blend the residential and commercial income streams into one underwriting file - Consider this route when your zoning is split and a conventional lender has already said no.
Bridge-to-DSCR refinance sequencing - the exit strategy. Investors who close a private bridge loan without a mapped refinance path end up scrambling at month 18. Lenders who pre-plan the transition into a permanent DSCR loan reduce that risk - this is a Buy move to build into your term sheet from day one, not an afterthought.
Talk through your commercial deal today
Get program options and a real closing timeline before you sign a term sheet.
What to avoid
- Private lenders with no defined refinance path - if the term sheet doesn't address what happens after month 24, you're setting up a forced sale or a rate reset you didn't budget for.
- "90% LTV" commercial pitches - high advertised leverage on commercial private money in 2026 usually means junior debt stacking or a personal guarantee that erases the asset-based benefit.
- Generalist lenders who "do everything" - a lender without a track record on land, mixed-use, or non-warrantable assets will slow-walk your file once underwriting hits the property type they haven't actually closed before.
Verdict comparison
Bridge loan (BRRRR)
- Typical LTV: 65-75%
- Term: 12-24 months
- Best For: Value-add multifamily/commercial
- Verdict: Buy
Hard money - land/development
- Typical LTV: 50-65%
- Term: 12-18 months
- Best For: Entitled or near-entitled parcels
- Verdict: Buy
Mixed-use commercial
- Typical LTV: 65-70%
- Term: 12-24 months, refi-eligible
- Best For: Split residential/commercial zoning
- Verdict: Consider
Generalist "do everything" private lender
- Typical LTV: Varies, often opaque
- Term: Varies
- Best For: Rarely the specific asset you own
- Verdict: Skip
FAQ
What is a private money loan for commercial real estate?
A private money loan for commercial real estate is short-term financing from a non-bank lender that underwrites the property and the deal instead of your personal income documentation. Terms typically run 12-24 months at 65-75% LTV, built for acquisition, rehab, or bridge situations a bank won't touch in 2026.
How fast do private money commercial loans close?
Most private money commercial loans close in 10-14 days once title, insurance, and the appraisal are in hand. Bank commercial financing typically takes 45-60 days for the same deal.
Is private money more expensive than a bank loan?
Yes, private money commercial loans carry higher rates and points than bank financing, reflecting the speed and reduced documentation. Investors typically accept the cost for a 12-24 month window, then refinance into permanent DSCR or conventional financing once the asset stabilizes.
Can I get a private money loan on raw land?
Yes, private lenders fund land acquisition and development at lower leverage than a stabilized asset, typically 50-65% LTV. Entitlement status and your exit comps drive pricing more than a rent roll does, since there isn't one yet.
Do private money lenders require tax returns?
Most private money commercial lenders skip tax returns entirely and underwrite off the asset's projected income or after-repair value. That's the main reason self-employed and LLC-held investors turn to private money over a bank.
What happens when the bridge loan term ends?
You either sell the asset, extend the term with the lender if that option exists, or refinance into permanent financing like a DSCR loan. Lenders who map that refinance path before closing reduce the risk of a forced sale at month 18-24.
Can mixed-use commercial properties get private financing?
Yes, mixed-use properties with split residential and commercial zoning qualify for private money programs that blend both income streams into one underwriting file. Conventional lenders frequently decline these deals outright because they don't fit a single asset class box.
What LTV should I expect on a commercial private money loan in 2026?
Expect 65-75% LTV on stabilized or value-add commercial assets and 50-65% on land in 2026. Any pitch significantly above that range usually hides cost in points, fees, or subordinate debt.
One last thing
The deals that fall apart on private money commercial financing almost never fail at closing - they fail at month 18 when the borrower never planned the refinance exit. Build the DSCR refinance conversation into your term sheet on day one, not the week your interest reserve runs out.
