CalculateRealEstateROI

Financing · Guide

Private Money Lenders

Individual lenders — cheaper than hard money, slower than conventional, relationship-driven.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Rate 9–12%.
  • Note + DOT structure.
  • Relationship + reputation.
  • Faster than bank, slower than HM.
  • Build pool of 5+.

Core concepts

Source

High-net-worth individuals.

Structure

Note + deed of trust.

Speed

1–2 weeks.

Step-by-step framework

  1. 1Build relationship pool.
  2. 2Document terms.
  3. 3Attorney review.
  4. 4Close.

Common mistakes to avoid

  • Verbal agreements.
  • Single lender dependence.

Frequently asked questions

How to find?

REIA, network, referrals.

Typical rate?

9–12%.

Term?

6–24 months.

Min amount?

$50k+.

Action checklist

  • ☐Pool of 5+.
  • ☐Attorney-drafted note.
  • ☐Repeat relationship.

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