For many real estate investors, private money lending sounds attractive. It feels flexible, fast, and relationship-based. But what most new investors don’t realize is this: private money is not always guaranteed — even after verbal agreements or signed documents.
I’ve seen deals fall apart at the worst possible moment. Properties under contract. Inspections completed. Timelines locked in. Then suddenly, the private lender backs out with little to no notice. No explanation. No backup. And now the investor is scrambling — often losing the deal entirely.
This is where many investors learn a hard lesson: not all capital carries the same level of certainty.
That’s why experienced investors prioritize securing their first lien position with a reputable hard money lender. Once a hard money loan is approved, documents are signed, and conditions are met, the funding is far more secure. These lenders are structured institutions whose business model depends on closing funded deals — not changing their minds at the last minute.
Private money can still play a role — but only when used strategically.
For second-position needs such as holding costs, closing costs, or down payment assistance, private money can make sense because the exposure is smaller. However, this is where investors must shop smart. Randomly choosing a private lender from social media or a Facebook group — without vetting — exposes investors to unnecessary risk, including scams.
At I Invest Realty Group, we take this risk seriously. That’s why we offer access to vetted, trusted second-position private lenders who have been thoroughly reviewed and proven reliable. This protects investors from the costly mistakes that happen when desperation leads to poor capital decisions.
The bottom line is simple:
Hard money belongs in first position. Private money belongs in carefully vetted second position.
When structured correctly, your deal moves forward with confidence — not uncertainty.
