There seems to be a lot of curiosity, myth, and maybe even ignorance when it comes to private lenders. So, hoping to shed some light on the subject, I had a candid conversation with a private lender with whom I’ve worked with, and respect. She did not want to have all of her information listed because she doesn’t want to get bombarded with phone calls. So, I will just refer to her as Patty. Patty does want to hear from good investors, however, and I’ll tell you how to get in touch with her later.
Patty has been lending for about 10 years. She is unique in the industry because she is a trained lawyer with extensive construction experience. The money she lends is mostly her own, but she does use some money from friends and family, on occasion. When you borrow money from her she drafts all of the loan documents and the deed of trust herself; there is no third party lawyer involved, except for the title company’s lawyer. She is literally a one stop shop for a private loan.