My First Private Money Loan on a Single-Family Flip

[Nicole Claibourn]

Investment Info:

Single-family residence private money loan investment.

Cash invested: $50,000

This deal involved providing private money for the renovation of a single-family home known as the “Santi property.” It was my first private money-lending experience, and I saw it as an opportunity to participate in real estate investing without managing the renovation myself.

What made you interested in investing in this type of deal?

I wanted to learn how private lending works while earning a return secured by real estate. The idea of supporting another investor’s project and seeing a property transformed appealed to me.

How did you find this deal and how did you negotiate it?

I connected with the borrower through a trusted real estate network. We reviewed the project details, scope of work, and expected timeline. I worked with a transaction coordinator who handled the paperwork and ensured the agreement and documents were completed correctly.

How did you finance this deal?

I used personal funds.

How did you add value to the deal?

My role was to provide reliable funding so the investor could complete renovations on schedule.

What was the outcome?

The project is still in progress. The borrower is completing HVAC installation and other final updates before listing the home for sale. It’s been rewarding to follow the progress and see how private capital helps bring a property back to market.

Lessons learned? Challenges?

This experience underscored the importance of clear communication, documented agreements, and regular progress updates.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a transaction coordinator who managed the paperwork and title coordination. Her professionalism and attention to detail made the process smooth.