Private Money
Private money loans for investment property
Private money means the capital comes from private lenders and funds rather than from a retail bank. That changes what is possible: the decision is made by people who underwrite property for a living, on their own guidelines, without a branch's committee. We arrange this financing through our own private funding network — the funders we have worked with for years.
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Private money, in plain terms
The name describes where the money comes from, not a particular loan. In practice a private money loan on investment property looks a lot like hard money: short to medium term, secured by the property, judged on the asset and the equity far more than on your tax returns.
What private lenders offer is flexibility and a decision from someone who actually understands the deal. What they ask in return is a clear picture of the property, real equity, and a credible plan for repaying them.
It is used where a bank does not fit: a property that needs work, an entity purchase, an unusual asset, a deadline measured in days, a borrower whose tax returns do not tell the true story, or a file a bank has already declined for reasons that have nothing to do with the deal itself.
What private lenders weigh
The asset
What it is, what it is worth and what condition it is in. This is what secures them.
Equity and contribution
How much of your own money is in the deal. It is the single clearest signal a private lender reads.
The plan
What you are going to do with the property and how they get repaid. Vague plans get declined.
Timeline
When you need to close, and whether the file can realistically be ready by then.
Track record
What you have done before. Helpful, and usually required.
The entity
Most of this lending is written to an LLC, with the owners guaranteeing it.
Questions we get asked
How is private money different from hard money?
In practice they overlap almost entirely on investment property. 'Private money' describes where the capital comes from; 'hard money' describes how the loan is underwritten — against the asset. The same loan is often called both.
Can I get private money with bad credit?
Often, yes — several lenders on our desk publish no minimum credit score and underwrite the property and equity instead. Credit typically affects your pricing and leverage rather than access.
What kinds of property?
Investment property: single-family, two-to-four units, small multifamily, mixed-use, commercial and land, depending on the lender. Owner-occupied consumer lending is a different business we do not do.
How much of my own money do I need?
It varies by lender and by deal, and private lenders expect real contribution. We will tell you what the lenders we would place with actually publish once we see the numbers.
Is it only for investors?
This is business-purpose lending on investment property, not a mortgage on the home you live in.
How much can be financed
The highest figures published by the 4 cited lenders on our desk for this product. Whichever cap is lowest for your deal is the one that applies.
Up to
100%
Of total cost
purchase plus renovation
Up to
80%
Of after-repair value
what it should be worth finished
Up to
80%
Of current value
on a refinance
These are maximums, not what everyone gets: the top of a range is reserved for the strongest files, and what is available depends on the lender, the property, your experience and your credit. This is not an offer — terms are set by a lender in writing after underwriting.
Who uses private money
- Investors buying property through an LLC rather than personally.
- Borrowers whose situation needs a person to look at it, not a scoring model.
- Buyers of unusual assets a retail bank has no box for.
- Anyone who has been declined for a reason that has nothing to do with the property.
- Investors who need certainty of closing more than the lowest possible rate.
What people use it for
- Investment property purchases a bank will not write.
- Renovation and value-add projects.
- Entity purchases and portfolio moves.
- Time-sensitive acquisitions with a real deadline.
- Cash-out against equity for the next deal.
- Situations where a conventional file has already stalled.
The words lenders use, in plain English
- Private lender
- A fund, a company or an individual lending their own or their investors' capital, rather than a retail bank lending deposits. That is what 'private' describes.
- Business purpose
- Lending for investment rather than for a home you live in. This lending is business purpose, which is why it sits outside consumer mortgage rules.
- Personal guarantee
- The owners of the borrowing entity personally stand behind the loan. Usual here, even when the loan is written to an LLC.
- Cross-collateral
- Using more than one property as security, sometimes used to raise leverage on a deal that would not stand alone.
- Skin in the game
- Your own money in the deal. The clearest signal a private lender reads, and the reason a low-equity request is a hard sell.
- Term sheet
- A written summary of the proposed terms before full underwriting. Not a commitment, but the first real indication of what is on the table.
How it tends to work
Illustrative arithmetic to show how a lender thinks, using round numbers. Not an offer, not a quote, and not terms available to anyone in particular — real figures depend on the lender, the property and your file.
The bank said no for the wrong reason
A solid property and real equity, declined because of how a self-employed borrower's returns read. A private lender looks at the asset and the equity instead, and prices for the risk they can see.
An asset with no box
A mixed-use building with an odd unit mix, or a property mid-renovation. A person underwriting it can form a view; an automated model simply declines.
Certainty over price
Two offers on a property: one financed conventionally in 45 days, one privately in a fortnight. The seller takes the second. The premium you pay is the price of being the one who closes.
What you will be asked for
A private lender wants to understand the deal, not audit your life.
- The purchase contract, or the mortgage statement on a refinance
- Photo ID for every owner and guarantor
- Your LLC papers: articles, operating agreement, EIN letter
- Proof of funds for your contribution
- Recent bank statements
- Your plan for the property and how the lender gets repaid
- A track record, if you have one — helpful, usually required
- Authorisation to pull credit
From enquiry to closing
- 1
Tell us the deal
The property, the numbers, what you intend to do, and when. Private lenders decide on the story as much as the spreadsheet, so the story matters.
- 2
We take it to the right desks
Our private lending network is not interchangeable — some do renovation, some do commercial, some publish no credit floor. We approach the ones that write your kind of deal.
- 3
Term sheet
The first written indication of leverage, cost and timing. Not a commitment, and worth reading closely.
- 4
Valuation and title
An appraisal or broker opinion, and title work. These two set the real timeline.
- 5
Underwriting and closing
Conditions are cleared, documents signed, the loan funds.
What goes wrong
Asking for too much leverage
Private lenders read your contribution as the main signal. A request with almost nothing of your own in it is the most common decline.
A vague plan
'I'll fix it up and see' does not underwrite. What the property becomes, and how they get repaid, is the substance of the application.
Shopping only on rate
The cheapest term sheet is worth nothing if that lender cannot close in your window. Certainty has a value, and on a deadline it is the larger one.
Hiding the problem
The lien, the bankruptcy, the previous decline — tell us at the start. Private lenders can often work around a known problem and almost never around one found in underwriting.
Assuming private means unregulated
Business-purpose lending still has rules, documents and a personal guarantee. It is lighter, not absent.
Related financing
Tell us about the deal
A few short steps. What the property is, what it costs and what you plan to do with it.
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حتى نرسل لك خياراتك ونجيب عن أسئلتك.
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This is not an offer and not an approval. Terms are set by a lender, in writing, after underwriting, and vary by lender, by property and by file.
Bank said no, or too slow?
Send us the deal. We will tell you honestly whether our private funding network can place it, and what it would take.