A private lender is a person or business who is lending you their own money. This contrasts with institutional lenders like banks, which borrow from depositors to fund loans.
Private lenders establish their own lending criteria and can approve loans that traditional institutions won't consider. They commonly overlook factors such as credit scores, back taxes, and bankruptcies. Most private money loans are secured by real estate collateral.
Key distinctions from conventional lending include faster approval processes, more flexible qualification standards, ability to finance non-traditional investment properties, and lender discretion in setting terms.
Borrowers should work with trustworthy lenders and seek recommendations from those with prior experience.
Northwest Private Lending is a small family business operating for 30 years, lending $25,000 to around $1,500,000 per loan on investment real estate across Oregon, Washington, and Idaho. The company highlights its transparent approach and commitment to fair dealing with borrowers.