1. “Who’s borrowing the money?”
Mostly real estate investors who flip houses or rehab rentals. They need quick, reliable funding to close fast on properties that often need a lot of work. Because the money is fast and flexible, the rates tend to be higher than what a traditional bank offers.
2. “If it’s so easy for them, how do you qualify people?”
We’re actually pretty strict. We use a scoring matrix we built ourselves. We look at things like their project history, credit, reserves, collateral, and whether they’re coming through someone we already trust. It’s a simple system, but it keeps us consistent.
3. “How long do the loans last?”
Typically one year. Borrowers can extend for a fee if they need more time, or pay everything off early without a penalty.
4. “Do they make payments?”
Yep. They make interest-only payments each month and then pay back the full amount when they sell or refinance.
5. ‘Why not just go to a bank?’”
Banks can be slow. They also don’t love properties that are falling apart or need major renovation. We can close in about one to two weeks, which is huge for competitive deals.
6. “You mentioned you had help from others?”
When we were getting started, a few experienced people in our network supported us and showed us what to look for. As we grew, we structured each loan kind of like its own mini-project. Different people in our circle have gotten involved in different ways over time, which helped us scale responsibly. It was never a one-couple show, and we’re really grateful for that guidance and collaboration.
7. “How do you protect your money?”
We’re actually pretty conservative. Every loan sits in first position on the property, which means we’re the first ones paid if anything ever went wrong. If a project needs more than 75% of the after-repair value, we only move forward if there’s additional collateral to balance it out. Borrowers also carry property insurance and sign a personal guaranty. And because all three couples behind this have years of real estate experience, we’re comfortable stepping in and finishing a project if it ever came to that. Fortunately, we haven’t had to.
8. “How do you decide the interest rate?”
We stay aligned with what similar private lenders charge. Nothing fancy. Just research, common sense, and staying in the lane of what’s typical for this type of short-term real estate funding.
9. “Are you hard money lenders?”
Not exactly. Hard money usually comes from institutions. What we do is private money, which is more relationship-based and hands-on. Smaller team, more personal approach.
10. “How are you lending out so much money?”
Each couple has their own strategy. For us, part of it comes from leveraging our HELOC and simply putting our money to work more efficiently. Some funds come from people we already know who use self-directed IRAs for real estate–related activities. Every dollar involved comes from our own network, not the public.
11. “What happens if the market crashes?”
Honestly, there isn’t one single answer. Real estate cycles hit different projects in different ways. If values dropped suddenly, most borrowers would simply change their exit plan. Instead of selling, they could refinance and hold the property as a rental until the market stabilizes. In some cases they may need more time on the loan.
We structure our deals with enough collateral to withstand scenarios like this, and we stay in regular contact with borrowers so we can pivot early if needed. That’s part of why we keep our underwriting conservative: it gives everyone breathing room when the economy gets shaky.
12. “What types of properties do you fund?”
Mostly residential real estate. Single family homes up to four units. Every now and then a mixed-use project shows up, and if the numbers and experience line up, we’ll look at it. But our bread and butter is regular houses that need work.
13. “Do you ever say no to deals?”
Oh yes. We’ve passed on quite a few. Usually it’s because the borrower is very new, or the collateral isn’t strong enough, or they don’t have enough reserves to handle surprises. Sometimes it’s all three. Saying no is a huge part of staying healthy in this business.
14. “What’s the biggest challenge you’ve faced so far?”
Honestly? Keeping up with demand. We’ve had more good projects come our way than we expected this early on, and matching our funding capacity to our growth has been a juggling act. A good problem, but a problem.