Updated about 1 month ago on . Most recent reply

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

- Real Estate Agent
- Kansas City
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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