Reader Questions; Private Lending

Heres a little Q&A from some of our readers…..

Hi, I’m a wholesaler from Louisiana and I visit your blog, I was wondering how do you finance your rehabs?  

We finance all our projects using mainly private lenders. We will use our own money from time to time but that is not our preferred route. With our private lenders we give them first mortgage postion and no greater than a 70% LTV. They lend us purchase and rehab money. Terms and interest rates vary. Alot of our private lenders are using funds set up in a self directed IRA. With a self directed IRA an individual can invest in not only stocks and bonds, but also Real Estate, notes, tax liens and mortgages. This gives you much more control, greater diversity, and better returns than just sticking your money into some mutual fund!

So, what is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a mortgage that secures their legal interest in the property and secures their investment. We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. We offer very low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 65% to 70%. This means additional security on the investment.


Working with private lenders has allowed us to take our business to the next level and do the volume of projects we are doing today. Dominic is an expert on the ins and outs of Private Lending… so if you have any further questions about self directed IRA’s,  or private lending, shoot us an email at