Private money lenders for real estate investors fill the gap when banks won’t fund distressed acquisitions, short hold periods, or LLC-vested business-purpose deals. Whether the capital comes from a wealthy individual or a private lending company like Jaken Finance Group, the structure is the same: short-term, asset-secured financing priced for speed and flexibility — not the lowest rate on a 30-year owner-occupied mortgage.
Jaken operates as an institutional private lender with dedicated capital, standardized underwriting, and nationwide reach — the reliability of a firm, not a single angel whose wallet might dry up mid-project.
Private money vs. hard money vs. bank — comparison
| Factor | Bank | Individual private lender | Jaken (institutional private) |
|---|---|---|---|
| Speed | 30–45+ days | Variable — often fast | 7–14 business days typical |
| Underwriting | W-2, DTI, seasoning | Relationship-driven | Asset-based + documented process |
| Capital depth | High | Limited to one checkbook | Institutional capital base |
| Entity loans | Sometimes | Informal | LLC standard |
| Best for | Stabilized rentals | One-off relationship deals | Scale, repeat investors, geo diversity |
Further reading: Private money lending for real estate · Private money lending and real estate investments · Investor financing FAQs
When real estate investors use private money
- Fix-and-flip acquisition — close before the auction or MLS deadline
- Bridge between buy and sell — carry a listed flip while the buyer’s lender catches up
- BRRRR bridge leg — rehab before DSCR refi
- Ground-up construction — vertical capital before permanent takeout
- Portfolio gap — down payment or carry when 100% leverage is not quite there
Get approved · Loan programs overview
Jaken private lending products
| Product | Use case | Apply |
|---|---|---|
| Fix & flip / rehab | Buy, renovate, sell | /submitflip/ |
| Bridge | Short-term carry | /submitpurchase/ |
| New construction | Ground-up build | /newbuild/ |
| DSCR rental | Stabilized hold / refi | /submitrefi/ |
Related hubs: Asset-based hard money · Rehab loans · Bridge loans for investors
Institutional private money vs. angel capital
Individual angel private lenders can move fast on relationship deals — but capital depth is limited to one checkbook. When a sponsor scales to 3+ simultaneous projects, institutional private lenders provide:
- Repeat borrower programs with tiered LTC based on track record
- Dedicated draw inspectors in your metro
- Portfolio refi paths into DSCR permanent debt
- Proof-of-funds letters same-day for competitive offers
| Deal profile | Angel private money | Jaken institutional private |
|---|---|---|
| Single flip, trusted partner | Often works | Overkill unless speed matters |
| 2–4 simultaneous rehabs | Capital constraint risk | Standard operating model |
| BRRRR with planned DSCR exit | May not offer refi path | Bridge → DSCR on same desk |
| Out-of-state acquisition | Unlikely | All 50 states |
Worked example: private money on a fix-and-flip
Indianapolis SFR acquisition:
| Line | Value |
|---|---|
| Purchase price | $165,000 |
| Rehab budget | $42,000 |
| ARV | $265,000 |
| Total project cost | $207,000 |
Hard money at 90% LTC ($186,300):
| Item | Amount |
|---|---|
| Cash to close (10% + fees) | ~$28,000 |
| 6-month IO carry @ 11% | ~$10,250 |
| Total cash invested | ~$38,000 |
Exit at $255,000 sale: Net profit ~$22,000–$28,000 after carry, points, and selling costs.
Model your deal: fix and flip calculator · Indianapolis cash-flow markets
State private lending hubs
Jaken funds private money deals nationwide with metro depth in focus markets:
National overview: real estate financing for investors
Private money FAQ
What is a private money lender for real estate investors?
Private money comes from non-bank sources — individuals, mortgage funds, or private lending companies — secured by investment property. Jaken operates as an institutional private lender with dedicated capital and standardized underwriting.
What is the difference between private money and hard money?
The terms overlap in investor use. Hard money usually describes asset-based bridge and flip loans from professional lenders. Private money can mean the same thing or an individual angel lender with informal terms.
Why use private money instead of a bank on investment property?
Speed, flexible underwriting on distressed assets, entity borrowing, and leverage on ARV — banks rarely fund fix-and-flip timelines or non-owner-occupied rehab at investor leverage.
Does Jaken Finance Group offer private money loans?
Yes. Jaken is a private lending company funding fix-and-flip, bridge, construction, and DSCR products nationwide — not a depository bank.
Work with an institutional private lender
Need private capital that shows up on repeat deals? Get approved or submit a financing scenario — Jaken Finance Group funds real estate investors nationwide.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196