Interest rates for private money loans can vary widely depending on the deal, borrower, and lender flexibility. In my experience, the best lenders tailor terms to fit the specific project and investor goals rather than offering a one-size-fits-all rate.
If you’re navigating private lending and want to discuss what competitive, customized financing might look like for your next deal, feel free to reply here or reach out. Always happy to share insights and explore options that work for you!
Good question! When it comes to what's 'fair' for private loan interest rates, here's my take, based on what I've seen. (And by the way, I'm always looking to connect with other lenders as I build out my capital partners network.)
I've been doing private lending for the past year or so. The big thing for me is that I've been on both sides of the table – as a developer needing to borrow, and now as the one lending. So, I've seen firsthand that rates and points aren't just pulled out of a hat; they honestly change a lot based on the relationship you've got with the people you're working with.
That's one of the best parts about private lending, especially compared to trying to get a loan from a bank or some of the bigger hard money outfits – you actually have some flexibility. But, I've talked with a few lenders lately who have a very 'one-size-fits-all' deal: this much interest, this many points, no wiggle room. I get that it can make things simpler and quicker for them, but personally, I think that way of doing things misses the human side of it all. It can feel pretty transactional, you know?
For me, the best lending relationships, the ones that really work, are when you can shape the terms to fit what the deal actually needs and when there's real trust built up. That’s the kind of relationship-focused lending I value and try to do. I really believe that in the end, it makes for much stronger and more successful partnerships.