Private Money Lender - Bridge Loan

Investment Info:

Single-family residence private money loan investment.

Cash invested: $50,000

I provided a short term private money bridge loan using my own capital to help an investor. The loan was structured with no monthly payments, a fixed percentage of the loan balance to be paid upon loan payoff, and secured by real estate, giving the borrower flexibility.

This experience created a win-win outcome for both sides.

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

I was interested because it gave me an opportunity to put capital to work in a secured, short-term position while helping another investor.

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

A mortgage broker reached out to me for HML for a borrower/investor that reached out to them. While this loan amount wasn't available in my company's guidelines, I was able to structure a scenario that greatly benefited both myself and the borrower/investor.

How did you finance this deal?

I used my own capital to fund the bridge loan.

How did you add value to the deal?

I provided speed and certainty of funding.

What was the outcome?

The loan performed as agreed and was repaid in full.

Lessons learned? Challenges?

I learned the importance of clearly defining exit strategies and timelines up front. Communication throughout the loan term was also key to making it a smooth transaction.

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

Kerr Law Firm PLLC, a law firm in Maitland, Florida was pivotal in structuring a contract agreement and provided title services to place a lien on the property during the loan.