How First Lien and 65% LTV Protect Your Capital

Hard money lending works when downside is controlled. Two controls matter most for investors: first lien position and a conservative Loan-to-Value cap.

First lien security means your entity is recorded on title as the lender. If a borrower defaults, you are first in line. You control outcomes through foreclosure or a negotiated payoff. There is no fund middleman between you and the collateral.

65% LTV or less creates a built-in equity cushion. If market prices move or rehab costs run long, there is still room to exit cleanly. This structure reduces loss severity and protects principal while you collect monthly interest distributions.

At Prosper Financial Solutions, LLC, investors keep their name on the note and deed of trust. We service the loan end-to-end. We source qualified borrowers, draft documents, coordinate closing, collect payments, and remit interest. You receive passive income that is secured by real property and supported by prudent underwriting.

Typical investor check size: $500,000 to $3,000,000 per deal.
Target yield: 10% to 12% annualized, paid monthly.

Related reading: Why Hard Money Lending is the Ultimate Passive Investment in 2025

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