What is Private Lending & How Does It Work?

If you are looking to invest in real estate, there are times when a bank might not be an option for you, such as when you need to close on a deal quickly. This is where private money lenders for real estate enter the picture, offering a fast, reasonable, and secure solution that allow you to close quickly on residential investment properties.

A private lending company allows you to obtain real estate loans that may not fit into more traditional lending standards, using custom metrics that make it possible to structure loans based on individual situations. Private money lenders are also known as hard money lenders, and typically provide money to borrowers much more quickly than a traditional lender.

How Does It Work?

Private money lending covers different types of private capital loans such as hard money loans and bridge loans. At Wildcat Lending, our private loans are for residential (1-4 family) investment properties located in or around major metropolitan areas in Texas.

With traditional banks and mortgage lenders, potential loans are typically sent to underwriters, who base their decisions on strict criteria, and they generally do not deviate from that. A private lender knows that each client or borrower has their own individual situation, and that timing makes a big difference. Private lenders help bridge the gap that is too often in place when a borrower only considers traditional lenders.


With Wildcat Lending, potential borrowers must still meet a few requirements. They must carry a 620 minimum credit score, have at least six months of expenses in liquid reserves, and have no recent foreclosure or bankruptcy history. If these criteria are met, a borrower may be able to qualify for a loan from a private lending company.

Private lending is perfect for someone who is looking for a secure loan more quickly, without having to go through the hassle and time-consuming process of applying for a traditional loan. These loans feature reasonable rates and allow you to move quickly if an investment opportunity in residential real estate presents itself. We understand the need to be agile in today’s real estate environment, which is why we strive to always work with our borrowers and their individual circumstances.

There are typically different paperwork requirements for borrowers who are private individuals or business entities, so it’s important to be prepared with what you need when applying for a private loan. Loans are generally based on the After-Repaired Value (ARV) of the property, which will include both the purchase and the renovation budget.

If you are a borrower who is interested in private lending to help facilitate your real estate investment, apply now for a loan from Wildcat Lending. You can expect to hear back from us within 24 hours, because we understand that in many cases, time is of the essence.