Expanding Your Real Estate Portfolio Through Private Money or Hard Money in California

As an “Independent Mortgage Broker that Works for the People”, Private Money, or HARD MONEY is in constant demand.  Garrick Werdmuller, President and CEO of Fresh Home Loan has been brokering Private Money deals since 2008. “Back then, many investors could only get Private Money due to the Mortgage Meltdown” explains Werdmuller. 

“We have used Private money for Fix and Flip investors, for properties in need of serious rehabilitation, for cashing out, construction, and even as a bailout” Werdmuller goes on. “We have investors all over the state that are hyper local and can do some pretty amazing things.”

What is Private Money?

Private money, often referred to as hard money, is a form of financing facilitated by private individuals or companies rather than traditional lending institutions like banks. Unlike conventional loans that are subject to stringent criteria and lengthy approval processes, private money lending relies more on the value of the property being purchased or renovated, as well as the borrower’s equity and exit strategy. This alternative financing option has gained popularity due to its speed, flexibility, and ability to fund deals that may not meet the criteria of conventional lenders.

Why Private Money?

Private money lending offers several advantages that make it an attractive option for real estate investors in California. Firstly, private money lenders are typically more flexible in their lending criteria, allowing investors with less-than-perfect credit or unconventional property types to secure financing. Additionally, private money loans can be processed much faster than traditional mortgages, enabling investors to capitalize on time-sensitive opportunities in the competitive California market. Moreover, private money lenders often consider the potential of the property rather than the borrower’s credit history, making it an ideal solution for investors looking to leverage their real estate assets.

Property Types and Closing Time Frames

One of the key benefits of private money lending is its versatility in financing various types of properties. In California, where the real estate market is diverse and dynamic, private money lenders are open to funding a wide range of properties, including residential homes, multifamily units, commercial buildings, and even land. Whether you’re looking to purchase a fixer-upper, flip a distressed property, or undertake a ground-up construction project, private money can provide the necessary capital to fuel your real estate endeavors.

Moreover, private money loans often come with expedited closing time frames, allowing investors to close deals quickly and seize lucrative opportunities. Unlike traditional mortgages that can take weeks or even months to process, private money lenders can often fund loans within days, providing investors with the agility they need to compete in California’s fast-paced real estate market.

Uses for Private Money

Private money lending can be utilized for a variety of real estate investment strategies, including:

Private money can be used for a variety of purposes in real estate investment. Some common uses include:

Fix and Flip: Investors use private money to purchase distressed properties, renovate or improve them, and then sell them quickly for a profit. Private money loans cover acquisition costs, renovation expenses, and holding costs during the renovation process.

Rehabilitation: Properties in need of significant repairs or upgrades can benefit from private money loans to fund the rehabilitation process. Whether it’s addressing structural issues, updating outdated features, or modernizing the property, private money provides the necessary capital for improvements.

Additions: Private money can finance property additions or expansions, allowing investors to increase the value and appeal of their real estate assets. Whether it involves adding extra square footage, creating additional living spaces, or upgrading amenities, private money loans can fund these projects.

Construction: Private money lending supports new construction projects by financing land acquisition, construction costs, and development expenses. Investors undertaking ground-up construction rely on private money to fund the various stages of building, from site preparation to completion.

Bridge Financing: Private money loans serve as short-term bridge financing for real estate transactions where traditional financing is not immediately available. Investors can use private money to secure a property quickly or to bridge the gap between purchasing and securing long-term financing.

Cash-Out Refinancing: Real estate investors can leverage the equity in their properties through private money cash-out refinancing. This allows them to access cash for additional investments, debt consolidation, or other financial needs while retaining ownership of the property.

Buy and Hold Investments: Private money loans can be used to acquire rental properties, providing investors with the capital needed for down payments, closing costs, and property improvements. Investors can then generate rental income to repay the loan and build long-term wealth through property appreciation.

Land Acquisition: Private money is often used to finance the acquisition of undeveloped land for future development or investment purposes. Investors can secure land parcels with private money loans and hold or develop them based on market conditions and investment objectives.

Distressed Property Acquisition: Private money loans enable investors to purchase distressed properties at foreclosure auctions, short sales, or bank-owned sales. These properties can be renovated or improved for resale or converted into income-producing assets.

Specialized Investments: Private money can fund specialized real estate investments such as commercial properties, multi-family residences, vacation rentals, or niche markets. Investors with unique investment strategies or property types can tailor private money loans to meet their specific needs and objectives.


Overall, private money lending offers flexibility, speed, and accessibility, making it a versatile financing option for various real estate investment opportunities and strategies.

For more information ot to contact Garrick:


Call or text: 510.282.5456

Email:  Garick@freshhomeloan.com

You may also contact Garrick Werdmuller Directly:

Garrick Werdmuller
President CEO
Fresh Home Loan Inc
510.282.5456 call/text
NMLS 242952
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All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104

Garrick Werdmuller

(510) 282-5456