What Is a Private Lender in Real Estate Investing?
December 30, 2025
Private lenders are mortgage lending companies that operate outside the traditional banking system, but still maintain full lending infrastructure—including licensing, capital reserves, underwriting teams, and servicing capabilities.
Unlike banks or conventional lenders, private lenders are:
- Not subject to the same banking regulations
- More flexible in underwriting guidelines
- Often focused exclusively on real estate investors
Private lenders typically offer Business Purpose Loans, such as DSCR loans, bridge loans, and Residential Transition Loans. Because they’re not bound by rigid GSE rules, private lenders can be more innovative, responsive, and investor-focused.
At Lend Investors Capital, private lending means combining institutional-grade infrastructure with forward-thinking programs designed for today’s real estate investors.
