A private money partner is a non-institutional (non-bank) individual or company that loans money, generally secured by a note or deed of trust, for the purpose of funding a real estate transaction from $500 to $100,000,000 for a specific time frame depending on the property, contractor, and a host of other factors. Most importantly is the time frame. Timing is of the essence. Reasons are because of payrolls, materials, closings, or purchasing cost is all done in a timely manner. Private money lenders are generally considered more relationship-based than hard money lenders.
The primary investor circle is composed of Friends & Family. Many real estate entrepreneurs/investors (we are all investors whenever we raise capital for a new investment) turn to friends and family for their first funding needs. Friends and family financing is popular because it is easy to get in front of these people who know you best.
These are the people whom share in your passion and understand what you are doing. However, this group of individuals must also understand how private money lending works and what is involved. This include documentation, such as Private Money Loan Request, DvD on on company profile and services, disclosures, Property Reports, Promissory notes. (These documents are included in this packet except for Promissory note which is the final document process)
A joint venture (JV) is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.
Invest with us into one of our projects where we are making a difference in communities one client at a time…
To speak with a representative about becoming a Private Money Partner, contact us at 1-888-503-0996
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Private Money Partnership Application
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