Private Lender
Quick Answer
A non-bank lender — typically a fund, specialty finance company, or individual — that provides real estate loans based on property value rather than borrower income.
Definition
A private lender is a non-bank financing source for real estate investors. Private lenders can be individuals, family offices, mortgage funds, or specialty finance companies. They underwrite loans primarily on property value and the investor's exit strategy, rather than tax returns or W-2 income. nuFLIP operates as a private lender, offering fix-and-flip, bridge, and rental loans to investors across the country.
Why It Matters for Flippers
Private lenders fill a critical gap in the market — they provide capital for investment transactions that don't fit conventional bank guidelines. For investors, working with a private lender means faster decisions, fewer documentation requirements, and underwriting flexibility for non-standard deal structures.
Example in a Flip Deal
An investor with LLC-held properties may request a private-lending review of the property's ARV, investment experience and exit strategy. Approval and closing depend on the completed file; no closing timeline is implied.
Related Terms
Hard Money Loan
Asset-based short-term lending secured by real property, typically used by investors who need fast financing without traditional income verification.
Fix and Flip Loan
A short-term real estate loan designed for investors who buy, renovate, and resell properties for profit.
Bridge Loan
Short-term financing used to 'bridge' the gap between buying a new property and selling or refinancing an existing one.