While traditional loans depend on the borrower’s credit score, employment status, debt to income ratio etc., private money offers other creative ways of qualification. The majority of the time, private money loans are secured by the property that is being acquired or by another asset.

Although private money lenders like Lensz Capital work by connecting a private investor with a borrower, these loans are still required to follow banking laws. These kinds of loans are great for business capital and are not recommended for private consumer debt purposes.


When you find yourself in a need of funding for a business venture or an investment especially in real estate, a loan like this will be just what you need. Here are some benefits of private real estate loans vs. a traditional mortgage loans.

  • Fast Funding – If everything goes according to plan, a private money loan can take a few days to get funded as opposed to a traditional loan, which can take weeks or even months.
  • Flexible Terms – Working with your loan officer on the terms that work for you allows more flexibility to design the loan that serves your situation best.
  • Less Paperwork – Because the loan will secured by an asset rather than the borrower, less paper work and documentation is needed to process the loan.
  • Get Better Deals – Being able to bring fast cash to the table allows for better negotiations and better deals.
  • Borrow More Money – Private money lenders can lend up to 100% of the purchase price with no money from your pocket.
  • Easy Loans For Fix & Flip – Unlike traditional mortgage loans, private mortgage lenders love funding Fix & Flip investments.


Because the funding process will most likely go quickly once you begin and because the loan will be secured by the property in question, the most important thing that needs to be done first is finding and securing the property you want to invest in. Without the property being under contract, the lender will not want to invest time in working with you without a specific property to work with.

With that said, here are the steps to give you the best chance at qualifying for a private money loan.

Once you have secured a property and it falls within the above criteria, you are ready to show for cash. To apply for a private money loan go to


There are 2 opinions about private money, just like with everything else, some love it and some hate it. But the fact is, private money is a tool, when used correctly, it is an invaluable part of the real estate investment business. There is a time when it is just what is needed and there are situations when some other solution will be abetter fit.

  1. Fast Funding: Time is money in the real estate business. Unlike traditional loans that can take weeks or even months, private money loans can be processed and funded within a few days or a couple weeks.
  2. Bad Credit? No Problem: Private money loans don’t need you to have good credit, the property that is going to be backing the loan is the only thing that will be looked at to make sure it qualifies.
  3. Real People Lending Money: People with money sitting in low paying CD’s and other investments are looking for better opportunities for their money which is where you come in with your real estate flip. It’s a win win for both sides.
  4. Creative Opportunities: Banks stay away from loaning money for fix and flip projects but private investors love this kind of opportunities. This is why they are able to provide creative funding solutions.
  5. Flexible Terms: Traditional loans are bound by strictly-enforced guidelines. Private money lenders understand this business better and are more willing to work with you to create a loan that works for your project.

Download our free guide to using Private Money for your Real Estate Investing.

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