Acquire & Fund Real Estate
Have Capital You'd Like to Put to Work?
Become a Private Money Lender
We vet real estate acquisitions ourselves. When a deal is ready to move forward, we bring it to our network of private lenders and let them quote their own terms.
Loans can be secured by the real estate itself. As with any lending arrangement, returns are not guaranteed and terms vary deal by deal — we’ll walk you through the specifics of a deal before you commit to anything.
What Is Private Lending? (plain-language, for readers new to the concept)
Private lending is when an individual — rather than a bank — lends money directly to a real estate investor, secured by the property itself. In exchange, the lender earns interest on the loan, typically over a short term measured in months rather than years.
For a lender, it’s a way to earn a return backed by a tangible asset instead of the stock market. For an investor like us, it’s a way to move quickly on a deal a bank might take too long to fund.
How Private Lending Works
Loan Structures
Financing structures vary deal by deal, drawing from hard money, private money, owner financing, and traditional lending depending on what best fits the situation. Rehab costs are negotiable. Loan terms are set individually by each lender and can vary accordingly. Loan-to-value typically ranges from 65% up to 100% of market value, sometimes lower depending on the deal. Interest rates are generally tied to the specifics of the individual deal, which can include the borrower’s credit profile. Points also vary based on the lender, the circumstances of the deal, and prevailing market conditions. “We’ll walk you through the specific terms of a deal before you’re asked to commit”
Collateral
Loans are secured by the real estate itself, using the same instrument banks and mortgage companies rely on — a deed of trust (or mortgage, depending on the state) recorded against the property. This gives the lender a real, enforceable security interest in the property, just as a bank holds when it finances a purchase. If the loan isn’t repaid according to its terms, the deed of trust is what allows the lender to pursue the property as collateral, the same legal protection conventional lenders depend on.
Due Diligence
Every deal goes through a vetting process before it’s brought to lenders. We estimate valuation and after-repair value (ARV) using a combination of online market data and our ARV-Grid tool, which analyzes comparable sales. Every property receives a walkthrough inspection using our Room Matrix tool to assess condition room by room and our Subject Matters software. Renovation costs are estimated internally and often confirmed with contractor bids. Title is verified by the title company as part of closing. We also review current rental rates where applicable, and every deal’s exit strategy — timeline, holding period, and realistic outcomes — is modeled using our Deal | No Deal Calculator before it’s presented to lenders.
Risks
Private lending carries real risk, and it’s important to go in with clear eyes. Real estate values can decline, and a property’s value at the time a loan is repaid may be lower than its value when the loan was made. Borrowers can default, and repayment is not guaranteed. While loans are secured by the property itself, foreclosure or other remedies to recover a defaulted loan can take time, involve additional costs, and are not certain to fully recover a lender’s investment. Renovation projects can run over budget or behind schedule, which can affect a borrower’s ability to repay on the original timeline. Private lending is generally illiquid — funds are typically tied up for the term of the loan and cannot be withdrawn early. As with any investment, past performance on one deal does not guarantee similar results on future deals. Lenders should only commit capital they can afford to have tied up, and are encouraged to ask questions about any specific deal before committing.
Sign Up for Financing Opportunities
Want to be notified when a vetted deal is ready for financing? Sign up below and we’ll reach out when there’s a fit for your capital.