Hard money home loans are often misunderstood. Some see them as expensive. Others think they’re a last resort. In reality, when structured properly, they’re one of the most strategic tools available to buyers and real estate investors who need speed, clarity, and flexibility.
In a recent interview, Pouyan Broukhim, owner of PB Financial Group, breaks down how hard money financing actually works, that is, who it’s for, when it makes sense, and how borrowers can use it responsibly to secure opportunities that traditional lenders simply can’t move fast enough to fund.
With nearly 18 years in business and more than 4,000 funded transactions, Pouyan brings both professional lending experience and personal real estate ownership to the conversation. He doesn’t just finance deals, he invests in property himself. That perspective shapes how he structures loans and advises clients navigating competitive markets.
If you’ve ever wondered when hard money makes sense, or how to use it without unnecessary risk, this breakdown offers real answers.
The Experience Behind the Strategy
Pouyan Broukhim isn’t just explaining hard money lending from theory, he’s speaking from nearly two decades of direct experience in the field.
As the owner of PB Financial Group, he is approaching 18 years in business and has funded more than 4,000 transactions across residential and commercial properties. His work centers on buyers and investors who need clarity, structure, and speed; especially in situations where traditional lenders cannot move quickly enough or think outside rigid underwriting boxes.
But what gives his perspective additional weight is that he isn’t only a lender.
Pouyan is also a real estate investor and property owner himself. He owns his primary residence and apartment buildings, and has personally navigated the same decisions his clients face, timing uncertainty, financing pressure, and the risks that come with moving too slowly or structuring a deal poorly.
That firsthand ownership experience changes the conversation.
Instead of focusing purely on rates or selling a loan product, his approach begins with listening. What is the borrower trying to accomplish? Is this a bridge strategy? A long-term hold? A short-term flip? A second-position equity play? The structure follows the strategy, not the other way around.
He also openly shares part of his personal journey. After immigrating from Iran at the age of nine, he built his career through persistence, education, and investment. That background reinforces a consistent message throughout the interview: ownership creates stability, but knowledge creates ownership.
For investors, that combination of professional expertise and personal real estate experience tends to resonate, because the advice isn’t theoretical. It’s practical, measured, and grounded in the realities of owning property in competitive markets.
So What Exactly Is a Hard Money Loan?
Strip away the misconceptions, and hard money is straightforward. It’s short-term, asset-based financing designed for situations where timing, flexibility, or structure matter more than fitting neatly inside a bank’s guidelines.
According to Pouyan Broukhim, hard money isn’t about replacing traditional lending. It’s about solving problems traditional lending wasn’t built to handle.
In practical terms, borrowers typically turn to hard money for two primary reasons:
- Speed. When a purchase needs to close in five to seven days, not 30 to 45, conventional underwriting simply can’t keep up.
- Strategic equity access. When a homeowner has a strong first mortgage at a low fixed rate and doesn’t want to refinance it, but still wants to tap equity through a second-position loan for investment, business expansion, or debt restructuring.
That second scenario is increasingly common. Many property owners locked in historically low first mortgages and don’t want to disturb them. A properly structured hard money second can unlock capital without sacrificing that original favorable loan.
At its core, hard money isn’t “better” than bank financing, it’s different. It’s built for moments when opportunity doesn’t wait for paperwork.
Bank financing vs. hard money: a simple comparison
Here’s a quick side-by-side based on what the episode describes.
| Factor | Bank loan (typical) | Hard money (as described in the episode) |
| Speed to close | Often 30 to 45 days | Often 7 to 10 business days (sometimes faster) |
| Decision path | Underwriting layers and longer review | Direct decision-making, fewer handoffs |
| Fit for time-sensitive deals | Often difficult | Built for fast-moving opportunities |
| Structure flexibility | More standardized | Can be customized to borrower needs |
| Common use cases | Primary home, standard purchases | Fix-and-flip, bridge loans, cash-out seconds, some commercial |
Takeaway: hard money isn’t “better,” it’s different. It fits deals where timing and clarity carry the most weight.
How PB Financial Group approaches pricing and approvals
One of Broukhim’s strongest themes is listening. He says many lenders focus on selling rates instead of understanding what the borrower is trying to do. His approach starts with the borrower’s goal, then builds a loan structure around it.
He describes the process like this:
- Call and explain the scenario (purchase, cash-out, rehab, timing).
- Get options quickly, based on what the borrower needs.
- If the terms work, complete an application.
- Receive approval and disclosures, with clear information about costs and security.
- Close without unnecessary delays.
He also notes that his company keeps loans on their books, rather than guessing what another buyer of the loan will accept. That affects how directly they can quote pricing.
Loan-to-value (LTV) explained
LTV is one of the most common terms borrowers hear, and Broukhim defines it simply.
Loan-to-value is the loan amount compared to the property’s market value.
Example given in the episode: if a property is worth $1,000,000 and the loan is $700,000, that’s a 70 percent LTV.
He adds a practical point: lower LTVs tend to get better pricing because the risk is lower. Higher LTV requests often cost more.
Loan terms, and what prepayment penalties really mean
Broukhim says terms can range from 11 months to 5 years, depending on the borrower’s goal. A fix-and-flip might need a shorter term, while other strategies might call for more runway.
He also explains prepayment penalties in a way most people can follow:
- Consumer loans rarely have prepayment penalties.
- Business-purpose or investment loans often do, such as 3 months, 6 months, or 1 year of guaranteed interest.
Still, he says the terms can be tailored. He gives an example where someone needs short-term funds to buy like cash, then sell another property soon after. In that case, the penalty should not wipe out the benefit of moving fast.
Speed matters, but so does fairness. A short-term loan only works if the payoff rules match the real plan.
What PB Financial Group can finance (it’s more than single-family homes)
Broukhim lists a wide range of property types they’ve financed, including:
- Single-family homes and multi-unit properties
- Apartment buildings
- Industrial properties and warehouses
- Car washes
- Mixed-use properties
- Retail shopping centers
- Raw land (in some cases)
- Development, residential construction, and apartment construction loans
He also states they do commercial work as much as residential, which matters for investors building portfolios beyond single-family rentals.
Why higher rates slowed sales, but didn’t slow every buyer
The hosts ask whether higher rates have slowed sales. Broukhim says yes, because affordability drops when rates rise. Monthly payments increase, and that changes who can buy.
At the same time, he says PB Financial has been busy. Investors are watching values soften and trying to buy low. Many want speed so they can rehab, reposition tenants, and raise rents to improve returns.
This connects to the episode’s bigger idea: markets change, but deals still happen. The winners are often the ones who can act while others wait.
The most common question he gets every day
Broukhim says people ask about rates and costs constantly. He also emphasizes that pricing depends on the specific deal.
A borrower with a $1 million property requesting $300,000 will often see different pricing than someone requesting $650,000 to $700,000 against the same value. Risk and loan size shape terms.
So instead of quoting a number in the abstract, he listens to the scenario first, then gives a clear answer.
International investor questions (and why he stays in his lane)
The show mentions a question from an investor in Mexico about whether it’s better to finance in Mexico or in the US for a US investment.
Broukhim doesn’t offer financial planning advice. He draws a firm line: he can answer mortgage questions because he’s licensed for that, but broader investment guidance belongs with a financial advisor. He also notes there are legal and regulatory issues when funds move across borders, and that those questions should go to the right professionals.
“Million Dollar Listing” closings, and how fast deals really happen
The host brings up Million Dollar Listing Los Angeles and asks how deals close in 10 days. Broukhim explains that many high-end purchases are cash, especially above $5 million. Buyers in that tier often have funds ready.
If someone is short a few million and needs to close quickly, that’s where a private lender can step in as a bridge. He also notes that many deals under roughly $2 million still use bank financing, but the big luxury deals often work differently.
Why Choose PB Financial Group
Pouyan Broukhim’s approach isn’t built around pushing loan products. It’s built around solving real estate problems. Every conversation starts with understanding the borrower’s objective, whether that’s closing quickly on a time-sensitive purchase, protecting a low-rate first mortgage, funding a value-add renovation, or stabilizing a commercial asset.
From there, structure follows strategy.
With nearly 18 years in business and more than 4,000 transactions funded, PB Financial Group brings experience that reduces uncertainty. The team understands how to evaluate risk, price deals appropriately, and move efficiently without unnecessary delays or surprises at closing.
Equally important, they prioritize clarity. Borrowers receive straightforward explanations of terms, loan-to-value, timelines, and prepayment conditions so they can make informed decisions. No guesswork. No vague promises. Just practical solutions aligned with real-world investment goals.
Hard money isn’t for every situation, but when speed, flexibility, and decisive action matter, the right lender can make the difference between missing an opportunity and securing it.
If you’re evaluating a purchase, refinance, bridge loan, second-position equity strategy, or commercial project, contact PB Financial Group at 877-700-3703 to discuss your scenario directly. You can also visit www.CalHardMoney.com to explore financing options tailored to California buyers and investors.
In competitive markets, clarity and speed are advantages. The right structure turns them into results.
