Understand the terms before you decide.

Private real estate lending generally refers to financing arrangements made outside conventional bank lending channels. These loans are typically documented with a promissory note and often secured by a mortgage on the property. Not every private loan uses the same terms or documents.

Interest is the cost of borrowing money. In an amortizing loan, scheduled payments include both interest and principal. Other loan structures may be interest-only or include a balloon payment. Actual payments depend on the borrower's ability and willingness to pay.

No. An owner holds title to the property and bears the responsibilities of ownership. A lender holds a contractual claim for repayment and may hold a security interest in the property, but does not become the owner simply because a mortgage secures the loan.

A secured loan gives the lender a legal interest in specified collateral, usually through a recorded mortgage on the property. Collateral does not guarantee repayment or protect against every loss.

A SlowFlip generally refers to acquiring an affordable property with the intention of transferring it to an end buyer under a long-term financing arrangement, rather than renovating and reselling it quickly. The structure depends on the property, applicable law, and the buyer's qualifications.

No. Borrowers can default, property values can fall, collateral may be insufficient, and enforcement can involve legal expenses and delays. Some promissory notes may also be regulated as securities.

No. This website is for general education. It is not an offer to sell or a solicitation of an offer to buy any security, and submitting a contact form does not create an investor relationship.