7 Things Every Borrower Should Know Before Applying for Private Money

7 Things Every Borrower Should Know Before Applying for Private Money

Private money lending is the lifeblood of fix-and-flip deals, creative financing structures, and real estate growth. But here’s the truth: not every borrower is ready to walk into a private lender’s world.

At The Flip Whisperer®, we’ve seen deals fly through funding because borrowers were prepared — and we’ve seen great opportunities stall because they weren’t. If you want to secure funding quickly and confidently, here are 7 things every borrower should know before applying for private money.

1. It’s Not About Credit, It’s About the Deal

Private lenders care less about your FICO score and more about the numbers. Is the deal solid? Does the exit strategy make sense? Is there enough equity to protect their investment?

2. Have a Clear Exit Strategy

Lenders want to know: How are you paying them back? Whether it’s a fix-and-flip resale, a refinance, or converting to a rental, your repayment plan must be crystal clear.

3. Bring the Numbers, Not Just the Dream

Know your purchase price, rehab budget, ARV (after-repair value), and projected timeline. A back-of-the-napkin pitch won’t cut it. Detailed numbers build confidence.

4. Skin in the Game Matters

Lenders want to see that you’re invested. Whether it’s cash reserves, a partner, or sweat equity, having skin in the game reduces risk.

5. Documentation Protects Everyone

Private money isn’t a handshake deal. Expect promissory notes, deeds of trust, or mortgage documents. These protect the lender — and they protect you too by setting clear terms.

6. Speed Wins Deals

One reason borrowers turn to private lenders is speed. But speed requires you to be ready: have your paperwork, contractor bids, and entity documents (LLC, etc.) lined up before applying.

7. Reputation is Everything

Borrowers who communicate, update regularly, and close on time get funded again. Burn a lender once, and your pipeline dries up. Build trust and your access to capital multiplies.

The Flip Whisperer® Perspective

We don’t just connect borrowers with capital — we coach them to be lender-ready. When you understand what private money lenders want, your chances of funding skyrocket.

Conclusion & Call to Action

If you’re serious about funding your next deal, preparation is key. Private money is powerful, but it’s only available to borrowers who treat it seriously.

✨ At The Flip Whisperer®, we don’t just find deals — we fund them, flip them, and repeat them.

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