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Be The Bank ! A Guide to Private Lending

Increase your financial returns


Have you wondered how you can receive better returns than you get from savings accounts, CDs, money market accounts, and the volatile stock market? Would you like to combine better returns with a low stress method to fund real estate projects? Real Estate private lending might be a solution for you.

Savvy investors have found out how to significantly increase their investment returns. Many real estate projects are searching for both short-term and long-term financing for their projects. Your investment in secured by real estate and a recorded mortgage.

Short-Term Financing

Also known as Hard Money – because the financing is based on the hard asset value of the project – is a vital portion of real estate. This type of funding is used for fix and flips and short-term re-positioning of rental properties. Short-term financing is used to purchase multi-family properties and rental portfolios that are a value play, where the promoter is improving value through renovation and rental increases. The interest rates for these projects range from 8% to 10%.

Long-Term Financing

For more established projects, the promoters are searching for a loan term of 5 to 20 years. These projects are lower risk to the investor and provide for stable returns.


As with any investment, the projects are normally evaluated on two factors: (1) The project assets, and; (2) the management team.

Project Asset(s)

The project asset, also known as the property, should be evaluated on the Loan to Value (LTV) versus the After Repair Value (ARV). For example, if the property is purchased for $50,000 with a renovation budget of $15,000, then the total cost is $65,000. If the value after repair is $100,000, then the project has a total cost of 65% of the ARV. If a private lender were to loan the promoter $60,000, then the LTV is 60%. We recommend that a private lender limit their LTV to no more than 65% on short-term financing and 80% on long-term financing.

Using these LTV guidelines will reduce your exposure. Worst case scenario is a foreclosure – but a strong management team will strive against all odds to ensure you are paid back, and in most cases will attempt to sell the property or deed the property to you.

Management Team

You are ultimately betting on the team behind the project and property. Make sure that they have the experience to properly complete the project and ensure that your loan is repaid.

Loan Repayment Periods

Many Hard Money loans are interest only, where a periodic payment (monthly or quarterly) is paid to you, and the loan principal is paid at the end of the loan as a balloon payment.

Other loans are paid on a monthly payment plan with a return of principal and interest. Based on the repayment period and the promoter need for project cash flow, there may be a balloon payment at the end of the loan.

Most longer term loans are secured by rental real estate. The rents provide both the borrower and the lender with added security, as the rents can ensure easy loan repayment.

Funding Options

Funding options include: Available cash, Self-Directed IRA, Self-Directed IRA LLC or Solo 401(k) . Lending in your self-directed retirement plan is preferred to direct real estate investment, as the IRA sometimes frowns on you running a business from within your retirement plan.


A real estate attorney should be utilized to prepare both a Promissory Note (where the borrower promises to repay the monies borrowed on specific terms plus a Mortgage (in some states called a Deed of Trust) that is recorded in the county Register of Deeds. Recording of the Mortgage ensures that the property cannot be sold without repayment of the mortgage. The Private lender specifies the terms that are then prepared by the attorney.

Once these terms are accepted by the borrower and the documents signed by the borrower and recorded, then the Private Lender will wire their funds to the attorney’s office. There is no need for the private lender to sign anything! The promissory note signed by the borrower, which states the terms of repayment, replaces the need for a contract.

Personal Experience

I have borrowed almost $2 Million in funds from investors who have provided funding through their Self-Directed IRAs or 401(k)s. This is an excellent method for an investor to maximize the returns of their retirement portfolios. My team with over 30 years of combined experience ensures that private investors have safe and profitable returns.

This process is time tested. Please contact me if I can provide further insight.

I am Curtis, an entrepreneur and daredevil with no fear and a heart as vast as the opportunities I seize. As a Senior Partner in a real estate investment firm, I thrive on the thrill of property acquisitions, rentals, optimization, and sales.My network is my secret weapon - financial institutions, hedge funds, wholesalers, and bulk sellers are just some of the allies I leverage to secure properties at prices that others can only dream of. What sets me apart is my unwavering commitment to protecting investor funds as if they were my own - because in my world, trust is the cornerstone of every deal.With a keen eye for lucrative investments and a bold approach to seizing opportunities, I am not just another player in the real estate game - I am the game-changer. Join me on this exhilarating journey towards financial success and let's conquer new horizons together.

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