Private Money Lending 101: What Every Investor Needs To Know

We flipped our first house with our own money.

Hey, we didn't know any better 🤷‍♀️

But when we started using private money, the game changed. It completely changed how we invested.

Instead of waiting weeks (or months) for bank approvals, we could fund deals fast, take advantage of better opportunities & scale without using all of our own cash.

If you’re new to private lending, here’s what you need to know & what I wish I had back when we started in real estate investing:

What Is Private Money?

Private money is funding from individuals or companies - not banks. It’s designed for real estate investors & business owners who need speed & flexibility that traditional loans don’t offer.

Why Investors Use It:

✅ Fast Closings – Private lenders can fund deals in days, not months.
✅ Less Red Tape – No jumping through hoops with endless paperwork or strict credit requirements.
✅ Leverage – Use private money to fund more deals at once, keeping your cash free for other investments (my favorite 😍)

Some Key Terms to Understand

(it's ok, I didn't understand some of these when we started either):

✨ LTV (Loan-to-Value): The percentage of the property’s value a lender will finance.
✨ ARV (After-Repair Value): The projected value of the property after renovations.
✨ Points: Upfront lender fees (typically 1-3% of the loan).
✨ Interest-Only Payments: A lot of private loans require only interest payments during the term, with the principal due at the end. This is a beautiful thing for cash flow on those flips!

How Private Money Is Different From Traditional Loans:

✅ Banks look at you - your credit, income, tax returns.
✅ Private lenders look at the deal - the property, the numbers & your ability to execute.

We’ve used private money to close deals that banks wouldn’t touch, refinance rentals to pull cash out & scale our portfolio faster than we ever could with traditional financing.

If you’re serious about growing as an investor, learning how to use private money effectively is a must!

Whether you are buying a fixer upper, a rental property or want to pull equity out of an investment property, private money is the way to go.

Let’s talk. We have access to $50M in private money to get out into the market! 💰🔥

p.s. This pic was from that first flip. We were ALL IN! 😍