"If They Can't Close in Two Weeks or Less, They're Not a Private Lender."

[Mitch Messer]

There's been some confusion about who qualifies as a private lender versus a hard money lender.

Let me make this SUPER easy.

1️⃣ Private lenders have people names, like Mary, Robert, Maxwell, or Sara.

There's only ONE decision-maker, and the person who talks to you is the SAME person who decides whether to lend you the money.

If your loan contact ever uses the phrase "underwriting committee" you're NOT dealing with a private lender.

2️⃣ Private lenders don't need a month to fund your deal. Once they say "Yes" they just need clean title and prepared loan documents.

If you're contact can't close in two weeks or less, they're NOT a private lender. (Assuming we're not talking million-dollar loans.)

3️⃣ After you close, if you never hear from your contact again, and someone else takes over, you are NOT working with a private lender.

Private lenders stay personally involved until you pay them back their money.

Because ... it's THEIR money!

Now, to be fair, I often hear GREAT things about operations like Lima One, Kiavi, and many others.

But, these are NOT private lenders. They are nationwide hard money lending operations.

#NotThatTheresAnythingWrongWithThat

#ButThereIsADifference

#TwoWeekRule

[Erik Estrada]

Quote from @Mitch Messer:

There's been some confusion about who qualifies as a private lender versus a hard money lender.

Let me make this SUPER easy.

1️⃣ Private lenders have people names, like Mary, Robert, Maxwell, or Sara.

There's only ONE decision-maker, and the person who talks to you is the SAME person who decides whether to lend you the money.

If your loan contact ever uses the phrase "underwriting committee" you're NOT dealing with a private lender.

2️⃣ Private lenders don't need a month to fund your deal. Once they say "Yes" they just need clean title and prepared loan documents.

If you're contact can't close in two weeks or less, they're NOT a private lender. (Assuming we're not talking million-dollar loans.)

3️⃣ After you close, if you never hear from your contact again, and someone else takes over, you are NOT working with a private lender.

Private lenders stay personally involved until you pay them back their money.

Because ... it's THEIR money!

Now, to be fair, I often hear GREAT things about operations like Lima One, Kiavi, and many others.

But, these are NOT private lenders. They are nationwide hard money lending operations.

#NotThatTheresAnythingWrongWithThat

#ButThereIsADifference

#TwoWeekRule

 I don't think this is a fair judgement of what private money is or isn't. I have worked with many direct private money lenders that pool money together from other investors and create a note. I have also worked with lenders that use secured LOCs or Retirement Accounts to lend money to investors. 

2 weeks is very little time to close. It DOES happen, but it has to be a very clean deal and borrower. Nothing to do with the financing approval.