What Is a Business-Purpose Private Money Loan?

I will start my blog today with a little announcement
Synergy Investment Group will be hosting two in-person meetings where you can learn more about what we are doing on the investment side, including how private money loans will be part of our investment pool.
Learn more here:
https://mikemeena.com/something-different-might-interest/
Tuesday, May 26 at 6:00 PM
Thursday, June 4, 2026 at 12:00 noon
Food will be served at both meetings. Please RSVP if you are going to come so we don't order too much food!
Location:
25129 The Old Road, Suite 305
Santa Clarita, CA 91381
Conference room down the hall from my office.

What Is a Business-Purpose Private Money Loan?
Every week or so, I see a private money loan cross my desk. They come in all shapes and sizes, but one thing is usually true: private money can be one of the most flexible loan options available when the borrower has equity and a solid plan.
A business-purpose private money loan is used for a business or investment reason, not for personal expenses.
That could mean buying an investment property, fixing and flipping a home, building a rental, pulling cash out for business equipment, or using equity to stabilize a company.
We recently looked at a property with missing windows, no kitchen, and a roof that looked like it could cave in if a pigeon landed on it. A conventional lender would probably say no. But the buyer planned to rehab it, refinance it, and rent it out. That is exactly where private money can make sense.
We have also seen investors with bad credit or limited income still qualify because the loan is tied to an investment property. Investment property loans are business purpose, which gives private money lenders more flexibility.
The challenge comes when the loan is consumer purpose. If someone wants cash to buy a car, pay off personal credit cards, or cover personal expenses, that becomes much harder. Consumer-purpose loans are subject to more laws and restrictions designed to protect borrowers, and many hard money lenders cannot or will not make those loans.
In simple terms:
Business purpose is workable. Consumer purpose is where it gets difficult.
Private money can be a great tool for investment properties, construction loans, fix-and-flip projects, rental rehabs, and business cash-out needs. It is not always the cheapest money, but it can solve problems that traditional lending cannot.
Interest Rates
Interest rates had a good day yesterday on rumors that there may be some progress overseas. Well, not so fast. By today, things had shifted again and rates moved back up.
Same dance, different song - and I am really not enjoying this party!
Loan Programs Snapshot
Government loans: FHA / VA / USDA in the 5s
Conventional: Loan amounts up to $832,750 in the high 5s / low 6s
High-balance: Mid 6s
Jumbo: Low to mid 6s
Bridge loans: 7.75% to 7.99%

Additional options include:

• Bank statement loans, 10% down+
• P&L loans, 20% down, no bank statements
• 0% down options, 620+ score
• DSCR loans, 15% down
• Bridge loans
• Buydowns, including 3/2/1, 2/1, and 1/0
• Private money / hard money loans
• Construction loans
• 203K loans
• Fix-and-flip loans

Rates subject to change without notice.
Condo Update
Good news: None today.
Bad news: Nothing new.
We love your non-warrantable condo loans!
Need help checking a condo? Call me and we can look it up in real time.

Full California "naughty list" available here:
https://mikemeena.com/non-warrantable-condos/

Let's Connect
If you, your clients, friends, or family need guidance, I'm here.

Sincerely,