How to Secure 100% Private Lending for Real Estate Investment Deals (No Credit Check Required!)

If you're looking to finance real estate deals without dealing with banks or being limited by credit or personal income requirements, private lending could be the answer.

There are many creative ways to fund your real estate deals. Partnering with real estate investor-friendly lenders—such as private lending companies and hard money lenders—may present an appealing asset-based lending program at first, but it often comes with predefined loan terms, interest rates, and more involved requirements for reserves and down payments compared to working with individuals in your network.

While it may be useful to have a list of private lending companies and hard money lenders ready to fund your deals when needed, it's highly beneficial to grow a network of private individuals to fund your real estate deals whenever the opportunity arises. Whether from your personal network, advertisements, website, or social media, these individuals seek you out for the chance to earn higher returns on their capital compared to traditional financial holdings, such as savings accounts, 401(k)s, or IRAs.

These private lenders can fund 100% of your deal—including purchase price, renovations, and holding costs—if you structure the right opportunity.

Here’s how you can secure private capital for your real estate investments without jumping through traditional lending hoops.

Why Private Lenders Will Fund Your Deals

Think of it this way... you are providing a service by offering individual private lenders higher returns than they would receive from traditional bank accounts or other lower-return investments, while also providing more stability compared to riskier options like the stock market. 

Unlike banks and established private and hard money lenders, individual private lenders don’t require financial statements, tax returns, or credit checks. You are guiding them into your lending program, where they lend to you based on the strength of the deal, not your personal financial history.  

“The security for the loan is the property, not you personally. You're not guaranteeing the loan.” – Greg Dickerson

This means you don’t need money in the bank or a high credit score—what matters is presenting a solid deal that stands on its own. 

Structuring a Private Lending Deal

To attract private lenders, one strategy is to have a structured program that offers clear terms and security. The beauty of attracting individual private lenders to you is that you can choose terms that will serve as a win-win to all parties.  Here are some examples to consider:

• Offer a Competitive, Annualized Return - You can structure your deal to provide a solid incentive for private lenders, which today might include an 8-12% annual return on investment. This range is notably higher than what they might earn from traditional savings or money market accounts.  Keep in mind to update this offering as interest rates change over time.
• Offer a Preferred Return – In an preferred return structure, the private lender gets paid their agreed-upon return before you take any profits from that specific deal.  This provides the investor some assurance that their return will be top priority to you and your company.  Note that any paycheck you might pay yourself throughout the year is separate, as it is a business expense and does not come from the profits of that specific deal—it comes from your company’s overall revenue and operations. 
• Present a Strong Deal – Private lenders focus on the asset itself, meaning the strength of your deal—whether it's through potential resale profits or consistent rental income—is the key factor. Clearly show how the property will generate a return, as these asset-based loans rely solely on the merits of the deal, not your personal financial background. 
• Provide Security – Most private lenders will want their investment secured to the property itself, providing them with a note and deed of trust, or mortgage. This also shifts your personal liability to the real estate asset instead of to yourself. A local real estate attorney can draft these documents for you.

Building a Private Lender Network

One of the biggest advantages of private lending is the ability to create a network of lenders who compete to fund your deals. Here’s how to build your network:

1. Start with Individual Lenders – Focus on private individuals looking for higher returns than traditional savings accounts.
2. Showcase Your Track Record – If you’ve completed deals before, use them as proof of success. If not, leverage the experience of partners or mentors.
3. Expand Your Reach – Over time, aim to grow a list of 20-30 private lenders who can fund deals. The more lenders you have, the better your chances of securing fast capital.
4. Create Competition – As your credibility grows, lenders will want to invest with you, creating competition and giving you leverage in negotiating terms.

Why Private Lending Works in Any Market

Private lending terms adjust with market conditions, but the core principles remain the same. In times of low interest rates, you may secure funding at 8%, whereas higher-rate environments may require offering 10-12%. Regardless of market shifts, individual private lenders are always looking for secure, high-return opportunities—making real estate a strong option.

Final Thoughts

These are some of the proven strategies we and our students have used to effectively attract private lenders to fund our real estate investment deals and renovations.  Keep in mind we are not financial advisors.  Always consult with a licensed financial professional or attorney to ensure your deals are structured correctly, fit your specific needs, and are legally compliant. 

Private lending is a powerful way to fund real estate deals without personal financial disclosures, credit checks, or bank approvals. By structuring solid deals, offering competitive returns, and building a reliable lender network, you can secure 100% funding for your projects. The key to success is presenting deals that offer clear value, ensuring your lenders are eager to invest and confident in the potential returns.

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