Private Lending Real Estate: Complete Guide, Best Platforms, and Top Services for Property Investors

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Private lending real estate refers to a financing model where individuals or private companies provide loans to property investors, house flippers, builders, and rental owners. Unlike traditional bank financing, private lending offers faster processes, flexible requirements, and easier approvals, making it one of the most desirable funding options in today’s property market.

Private lenders evaluate property value, after repair value (ARV), and investor experience rather than focusing solely on income documents or credit scores. As a result, investors get quicker approvals and funding that help them secure opportunities in competitive markets.

The top transactional keyword for this article is private lending real estate.

Why Real Estate Investors Use Private Lending

Real estate investing requires rapid access to capital. Traditional banks may take weeks or months to approve financing, causing investors to miss profitable deals. Private lending solves this by offering:

  • Faster approvals

  • Flexible underwriting

  • Higher Loan-to-Value ratios

  • Short-term funding suitable for flips or BRRRR

  • Asset-based financing

  • Faster project turnover

Private lending enables investors to scale portfolios while maintaining healthy cash flow and liquidity.

Benefits of Using Private Lending Real Estate Services

Faster Access to Capital

Private lenders are known for their streamlined approval process. Instead of analyzing extensive personal documents, they evaluate:

  • Property condition

  • Local market trends

  • ARV (after repair value)

  • Investor experience

This allows investors to close deals within 24–72 hours something banks cannot match.

Benefit Details
Speed is a major advantage in real estate. When a high-equity distressed property becomes available, investors who can fund quickly often secure the deal before competitors.

Use Case
A house flipper finds a foreclosure property priced below market value. While banks require weeks to process financing, a private lender provides funds within 48 hours, allowing the investor to acquire the property immediately.

More Flexible Loan Terms

Private lenders offer investor-friendly terms such as:

  • No income verification

  • High LTV (up to 90% purchase + 100% rehab)

  • Interest-only payments

  • Adjustable repayment schedules

  • Loans tailored for flips, rentals, or commercial projects

Benefit Details
This flexibility helps investors structure financing according to project timelines, reducing holding costs and maximizing ROI.

Use Case
An investor renovating a multi-unit property opts for interest-only payments during the rehab period to keep operational costs low.

Portfolio Growth and Liquidity

Private lending helps investors grow portfolios without using personal capital for every purchase.

Benefit Details
Leverage allows investors to work on multiple projects simultaneously without draining savings.

Use Case
A long-term landlord acquires and renovates two rental properties at the same time using private lending, doubling potential annual cash flow.

Top Platforms and Services for Private Lending Real Estate

Below are five real-world platforms commonly used in the private lending industry.

1. Kiavi — Real Estate Investor Loans

www.housingwire.com

Product Information
Kiavi is a leading lending platform for real estate investors. Using advanced data analytics, Kiavi quickly evaluates property values and project potential. The entire process from application to underwriting is digital.

Supported products include:

  • Fix and flip loans

  • Bridge loans

  • Rental portfolio loans

  • DSCR loans

Benefits

  • Fast approval

  • Automated valuation technology

  • Competitive interest rates

  • Transparent loan management

  • Support from experienced specialists

Use Case
A flipper discovers a distressed property with high ARV potential. Kiavi uses automated valuation models to assess the deal and quickly approves funding.

Where to Buy
You can apply for a loan directly through Kiavi’s official website.

2. Lima One Capital — Private Lender for Flips and Rentals

www.limaone.com

Product Information
Lima One Capital provides financing for:

  • Single rentals

  • Multi-family properties

  • Fix-and-flip projects

  • New construction

Their underwriting focuses on ARV and investor experience.

Benefits

  • Rental loans up to 30-year fixed

  • ARV-based flip loans

  • Multi-property portfolio financing

  • Access to investment experts

Use Case
A developer constructing two duplexes uses Lima One’s construction loan structured according to project milestones.

Where to Buy
Applications are submitted through the official Lima One Capital website.

3. Groundfloor — Short-Term Real Estate Notes for Investors

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Product Information
Groundfloor enables retail investors to participate in real estate lending by purchasing fractional notes starting at just $10.

Benefits

  • Low minimum investment

  • Transparent grading system

  • Easy diversification

  • Short durations (6–12 months)

Use Case
A passive investor allocates small amounts across several Groundfloor projects, earning interest higher than traditional bank savings.

Where to Buy
Investors can create an account through the official Groundfloor platform.

4. Fund That Flip — Real Estate Lending Platform

newsilver.com

Product Information
Fund That Flip provides fast funding for rehab, flip, bridge, and new construction projects using a rapid evaluation process.

Benefits

  • Approval within 1–2 days

  • Project-specific funding

  • Transparent interest rates

  • Tools for tracking project progress

Use Case
An investor purchasing a distressed duplex uses Fund That Flip to secure quick financing and expedite rehab work.

Where to Buy
You can apply directly through the Fund That Flip website.

5. Patch of Land — Peer-to-Real-Estate Lending

Product Information
Patch of Land connects borrowers with investors to fund short-term real estate loans such as bridge and rehab financing.

Benefits

  • Flexible borrower guidelines

  • Fast underwriting

  • Attractive returns for lenders

  • High project transparency

Use Case
A developer needing bridge financing for a nearly completed renovation project chooses Patch of Land due to its quick funding process.

Where to Buy
Both borrowers and investors can register through the official Patch of Land site.

How to Choose the Best Private Lending Real Estate Service

Consider the following factors:

  • Type of loan (flip, rental, bridge, construction)

  • Interest rates and fees

  • Approval speed

  • LTV and ARV requirements

  • Customer service quality

  • Program flexibility

Compare at least 2–3 lenders before deciding.

How to Buy and Apply for Private Lending Real Estate Loans

Step 1: Define Your Loan Purpose

Flip, rental, bridge, or construction.

Step 2: Prepare Project Information

Include purchase price, rehab budget, experience, and ARV.

Step 3: Compare Lenders

Focus on LTV, speed, and loan structure.

Step 4: Apply Online

Most platforms offer fast digital applications.

Step 5: Submit Supporting Documents

Such as bank statements and property photos.

Step 6: Close and Receive Funding

Funding usually arrives within 2–5 days.

Frequently Asked Questions (FAQ)

1. What is private lending in real estate?
Private lending for real estate refers to financing provided by individuals or private companies for flip, rental, or construction projects. These loans are typically short-term and asset-based.

2. Is private lending safe?
Yes, it is safe when using reputable platforms and understanding loan terms. Always review the lender’s track record and transparency.

3. Which private lending platforms are the best?
Popular options include Kiavi, Lima One Capital, Groundfloor, Fund That Flip, and Patch of Land, each offering unique products and advantages.

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