Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Mortgage Brokers & Lenders
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 month ago on . Most recent reply

User Stats

323
Posts
208
Votes
Jennie Berger
  • Lender
  • Chicago IL
208
Votes |
323
Posts

How Do I Get Private Money? (a lender's perspective)

Jennie Berger
  • Lender
  • Chicago IL
Posted

I see this question a lot and thought I’d flip it around and share what we (private lenders) are actually looking at before we decide to fund a deal.

For context—this is strictly for investment properties. I lend to LLCs for flips, BRRRRs, and transactional/double closes. No personal loans, no primary residences.

This is not an all inclusive list, but here’s what matters MOST to me:

  • -Experience & honesty: You don’t have to have completed dozens of deals, but be real about what you’ve done. Show me where you won and where you stumbled. How you handled the stumble often says more than the win itself. Strong character and integrity are vital. Must pass my 'gut' check.

  • -Skin in the game: I want to see you've got some commitment—cash, equity, reserves, or something tangible. In most cases, we will fund up to 95% LTC as long as it doesn't exceed 75% of the ARV. I always want the borrower to bring SOMEthing to closing.

  • -Exit plans: How are you paying me back? What’s your backup if plan A doesn’t pan out? Ideally, you have 2-3 exit strategies.

  • -Numbers that hold up: ARV, rehab, comps—I'd rather see conservative, boring numbers than a pretty spreadsheet that won't survive reality. My background in development and construction helps me dissect the SOW to ensure the plan is even feasible. 

  • -Communication: Probably the biggest one. Don't just respond because I reach out to YOU. Bother me with updates. And if something isn't going as planned, and you go dark when things get tough, I’m out. Pick up the phone and call me - if there's something I can do to help, I'm all for it!

That’s my lens.

Other private lenders—what do you care about most when deciding whether to fund a borrower?

And investors—what do you wish private lenders understood better about working with you?

Would love to hear both sides so we can make this thread useful!

Most Popular Reply

User Stats

3,959
Posts
2,874
Votes
Caleb Brown
#2 Out of State Investing Contributor
  • Real Estate Agent
  • Kansas City
2,874
Votes |
3,959
Posts
Caleb Brown
#2 Out of State Investing Contributor
  • Real Estate Agent
  • Kansas City
Replied

Great list. I do have one question. I see this question often but people claim a property is a smoking hot deal. They want a private lender to fund and use the equity as the "skin" in the game. How often does this happen and what's the threshold? 

  • Caleb Brown

Loading replies...