What kind of properties Do I Private Lend

This article is part of a series on private lending in real estate investing.  

Today we will discuss what kind of properties does a Private Lender lend on?

Curious about the types of properties you can lend on as a private lender? 🏠💼

There is a diverse range of properties that are ideal for private lending. From residential homes to commercial spaces, we explore the opportunities available in the real estate market.

Whether you're interested in fix-and-flips or long-term rentals, there's a property for every investor.

Watch now to learn more and expand your investment portfolio with private lending! 🔍💰

What Type of Properties do I Private Lend?
With private money lending, you will be confronted with several types of real estate investors. Here are a few scenarios you may encounter:

Transactional:  This type of investor will typically purchase a residential property and quickly resale it as-is. The investor may only need your money for a day or a few weeks.

Rehab/Sell: This type of investor will typically purchase a residential property and complete renovations with the intention of reselling it once the project is complete. Borrowers in this sector find private money attractive because conventional banks will often not lend to properties in poor condition. Lending on this type of deal will be 3-9 months on average.

Rehab/Rent: These investors typically purchase a residential property and complete renovations with the intention of renting the property for cash flow purposes.  Once renovations are completed, the investor will get a loan from the bank (low interest rate) and pay you back.  Lending on this type of deal will be 3-9 months on average.

Builders/Developers: Builders and developers will purchase vacant land to permit and develop into residential or commercial use. Many banks will not lend on speculative development.  Depending on the type of development, lending on this type of deal will be 1-3 years on average.

Commercial Investors: This population of investors may seek to use private money as a “bridge loan” for a commercial property when a conventional bank will not lend on an un-stabilized asset.