Real estate for sale in southern California communities. Cheryl Gollnick, Real Estate Broker

Private Lender Loans

What is a 'Private Lender Loan'?

It’s a short-term loan where the lender is a private investor who is loaning out their own money directly to the borrower or through a Broker.

The loan is usually backed by only the value of the property, not by the credit worthiness of the borrower. Since the property itself is used as the only protection against default by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans. A lot of times, the investor will want 20% - 40% down. The average is $25% - 30% down.

These loans carry higher interest rates than traditional bank loans.  

Private lenders  see value in this type of potentially risky venture. These loans are used in turnaround situations, short-term financing, and by borrowers with poor credit but substantial equity in their property that wish to stave off foreclosure.

Some lenders lend on residential only and some lend on commercial only, while some will lend on either, depending on the property, the length of time the lender will be asked to carry the loan etc.  

Here Are The General Terms For Private Lender Loans:

  • up to 95% LTV CA Max Finance of Purchase Contract
  • Rates as low as 4.75 %
  • No Upfront Due Diligence Fees
  • Minimum Loan Exposure $50,000
  • Maximum Loan Exposure $15,000,000
  • Terms: 6 months - 5 years
  • Points: 3-6 Points
  • Amortization (payment based on 30 year term) 
  • NO Prepayment Penalties
  • Metropolitan, Suburban areas
  • Typical Closing Time is 10-15 business days

If you need a private lender loan, please submit the “Contact Us” form and we’ll contact you. It will help if you give us some details on the form.


You can call us at (951) 306-0001.

CADRE Lic. #01117664