Private Money Loans — Direct From the Lender
You don't need another middleman — you need capital. AFC lends its own money on Connecticut investment real estate: term sheet in 24 hours, closings in as little as 7 days, and a decision maker you can actually call.
What Is a Private Money Loan?
A private money loan is short-term real-estate financing funded by a private lender's own capital instead of a bank or a brokered pool of someone else's money. AFC is the lender — we lend our own capital, underwrite in-house, and answer for our own decisions. The project in the video is our capital at work: George Washington's historic 1774 sheep farm in Watertown, Connecticut. We fund deals like it for Connecticut investors every month.
Why direct beats brokered
A broker shops your deal to other people's money — every yes needs another yes, and every delay is someone else's committee. A direct lender approves your loan with its own capital. One underwriter, one decision maker, no middlemen. When the numbers work, the deal gets done — and when we commit, the money is already ours to wire.
What that speed looks like: term sheet in 24 hours. Close in as little as 7 days. Up to 80% of purchase plus 100% of rehab, capped at 65% of after-repair value. Renovation draws inspected and released in days, not weeks — because the person approving the draw is the person who approved the loan.
Who you're actually borrowing from
AFC Mortgage Group is a family-run Connecticut lender — two generations, lending since 1998 — and we invest in real estate ourselves. Private money loans are funded from our own capital, underwritten in-house, and closed in our name. Call and you're talking to the decision maker, not a loan committee.
We Lend Our Own Money
Our capital, our decision. No committees to convince and no waiting on someone else's money — when we say yes, the deal is funded.
Talk to the Decision Maker
One call reaches the person who approves your loan. Term sheet in 24 hours — often the same day you submit the deal.
No Middlemen, No Committees
In-house underwriting and closings in our own name. When the deal is real, we move at contract speed — as little as 7 days.
Get Your Term Sheet
Tell us about the deal — purchase price, rehab budget, and target ARV. You'll get real terms back fast, not a runaround. Funding in as little as 7 days.
What Can You Fund With Private Money?
Purchases, fix & flips, heavy rehabs, and time-critical closings a bank can't hit. Terms run 6 to 18 months with interest-only payments, keeping carrying costs low while you work. Full terms and a representative example are in the disclosures at the bottom of this page.
Qualification is based primarily on the asset and the deal, not your personal income. We look at purchase price, budget, and After Repair Value (ARV) — no tax returns required. If the deal makes financial sense, we can fund it.
Who Uses Private Money?
House Flippers
Reliable funding for flips and rehabs. We look at track record and reward repeat investors with better terms.
First-Time Investors
Solid plan and adequate capital? We've funded many first-time investors. A strong deal with a realistic budget gets approved.
BRRRR Strategy Investors
Short-term financing before converting to a long-term DSCR loan. Buy, rehab, rent, refinance, repeat.
How Private Money Loans Work at AFC
Submit Your Deal. Send us the address, purchase price, rehab budget, and ARV. Preliminary terms often the same day.
Term Sheet & Application. Review your preliminary terms, sign the term sheet, and complete a short application to lock the deal in.
Underwriting & ARV Appraisal. Credit, liquidity, and deal review, plus an as-completed appraisal to confirm the after-repair value.
Close Fast. As few as 7–14 days. Purchase funds disbursed at closing; renovation funds held in a draw account.
Renovate & Draw. As each phase of work completes, request a draw—we inspect and release the funds so your project keeps moving.
Exit. Sell the finished property for your profit, or refinance into a DSCR loan and keep it as a long-term rental.
What You’ll Need to Submit Your Deal
The more of this you have ready, the faster we can issue terms. Don’t have everything yet? Submit anyway—we’ll help you fill in the gaps.
Borrower Documents
Entity Docs (LLC + EIN)
Your LLC operating agreement, articles, and EIN. We lend to entities, not individuals.
Proof of Funds & Reserves
Bank statements showing your down payment plus reserves for carrying costs.
Experience / Track Record
A short list of past flips or projects. New investors are welcome—terms just adjust.
ID & Credit Authorization
A government-issued ID and your authorization to pull credit for the guarantors.
What We Need on the Property
Property Under Contract
A purchase contract or signed offer showing the address, price, and key dates.
Scope of Work & Rehab Budget
A line-item renovation plan with your total rehab budget so we can size the loan.
ARV Comps
Recent comparable sales that support your after-repair value (ARV) estimate.
Contractor Bids
Written estimates from your contractor for the planned renovation work.
Frequently Asked Questions
What is a private money loan?
A private money loan is short-term real-estate financing from a private lender's own capital rather than a bank or a brokered pool. Loans are secured by the investment property, priced on the asset and the deal, and built for speed — purchases, rehabs, and closings a bank can't hit. AFC lends its own money and underwrites in-house.
How fast can AFC fund a private money loan?
Term sheet in 24 hours — often the same day. Closings typically run 7–14 days, and with a complete file we can move faster for time-sensitive acquisitions. Because we lend our own money and underwrite in-house, there is no committee between you and a commitment.
How does the renovation draw process work?
Renovation funds are held in escrow and released in draws as work is completed and inspected. You submit a draw request, an inspector verifies completion of that phase, and funds are released to your contractor. AFC coordinates the draw schedule to keep your project on timeline.
Do I need tax returns or income documentation?
No tax returns. Private money is asset-based: we underwrite the deal — purchase price, budget, and after-repair value — plus guarantor credit and liquidity. Most approvals have guarantor credit of 620 or better, but strong equity, reserves, or a solid track record can offset a thinner credit profile.
What will AFC lend on?
Non-owner-occupied investment real estate: single-family, 2–4 units, condos, and small mixed-use. Purchases, fix & flips, and heavy rehabs. These are business-purpose loans made to business entities — never secured by a borrower's primary residence.
How do private money rates compare to banks?
Higher — typically 10–12% interest-only plus 2 points, versus bank financing that takes 45–60 days and often says no to properties that need work. On a 6–12 month project, the cost difference is usually small next to the profit that speed and certainty make possible. Full terms and a representative example are in the disclosures at the bottom of this page.
What happens if my renovation goes over budget?
Cost overruns happen. AFC builds a contingency reserve into the construction budget (typically 10–15%) to cover unexpected costs. If overruns exceed the reserve, options include a scope reduction, a supplemental draw from your own funds, or a budget amendment reviewed by AFC. Communication early is key.
Can I refinance out of a private money loan?
Yes. Sell the property and repay at closing, or keep it as a rental and refinance into a 30-year DSCR loan based on the property's rental income — the BRRRR strategy. AFC handles both legs of the transaction.
Private Money Loan Requirements
Private money loans are asset-based, meaning we focus primarily on the deal — the property's value, your budget, and your exit strategy. AFC evaluates every deal individually.
Credit Score
620+ for the guarantors. Strong equity, reserves, or flipping experience can flex this — we price every deal individually.
Loan-to-ARV
Up to 65% of After Repair Value. AFC funds both the purchase and renovation budget within this limit.
Down Payment
Typically 10–30% of the purchase price depending on deal, credit, and experience level.
Loan Term
6–18 months. Interest-only payments during the renovation period. Extensions available for larger projects.
Property Types
Single-family, 2–4 units, condos, and small mixed-use. No owner-occupancy required.
Reserves & Experience
Liquid reserves covering 3–6 months of payments. Track record helps but first-time flippers are welcome.
Where We Lend
AFC finances private money loans for real estate investors across 17 states — with Connecticut as home base. Whether it's your first investment property in Fairfield County or a portfolio across multiple markets, AFC is built for this.
Connecticut · New York · New Jersey · Pennsylvania · Massachusetts · Rhode Island · Florida · Texas · California · Colorado · North Carolina · South Carolina · Georgia · Ohio · Michigan · Illinois · Virginia
Have a Deal? Get Your Term Sheet.
Send us the deal. We’ll give you terms — often the same day.
Submit Your DealPrivate Money Loan Disclosures — AFC Mortgage Group, LLC
AFC Mortgage Group, LLC offers short-term private money, fix & flip, and renovation loans secured by a recorded lien on the investment property. These are business-purpose real-estate loans made to business entities — not consumer loans, and never secured by a borrower's primary residence. No prepayment penalty and no minimum interest: pay the loan off early and you only pay interest for the time you used the money.
Representative Example. A $250,000 loan with a 12-month term at 12% annual interest, paid monthly ($2,500/month interest-only): 2 origination points ($5,000) plus approximately $3,000 in attorney, processing, and wire fees are charged at closing, with the $250,000 principal due at maturity. Held the full 12 months, total interest is $30,000 and total cost of credit is approximately $38,000 — an Annual Percentage Rate (APR) of approximately 15.5%. Paid off at 6 months, interest is roughly $15,000 and total cost of credit roughly $23,000. Actual cost depends on how long the loan is outstanding.
Terms at a Glance — Interest: 10–12% annual, interest-only, paid monthly. Origination: 2 points. Term: 6 to 18 months. Loan amount: up to 80% of purchase plus 100% of renovation budget, capped at 65% of after-repair value and subject to underwriting. Other fees: ~$3,000 (attorney, processing, wire). Prepayment: no penalty, no minimum interest. Collateral: recorded lien on the investment property; failure to repay may result in loss of the property through foreclosure.
AFC Mortgage Group, LLC — NMLS #2801, Equal Housing Opportunity. Rates, terms, and fees are representative examples only and vary by loan size, LTV, credit, experience, and market conditions. Not a commitment to lend; all loans subject to credit and collateral approval.