OPM Lenders & Creative Financing Methods
HARD MONEY LENDERS
Hard money loans are short-term, asset-based loans often used for fix-and-flip projects or BRRRR strategies.
Lender
Website
Pros
Cons
Laura's Notes
Lima One Capital
National lender, competitive rates, and wide product variety (fix-and-flip, rentals).
May require high interest rates and origination fees compared to traditional loans.
Offers ARV-based financing, ideal for rehab projects.
Kiavi (formerly LendingHome)
Streamlined process, pre-approval in minutes, competitive rates for experienced investors.
New investors might face higher rates; limited to certain markets.
Great for investors looking for fix-and-flip or rental property loans.
Do Hard Money
100% financing for qualified deals, no credit score requirements.
Stringent deal qualifications; higher rates for inexperienced investors.
Offers rehab loans and great educational resources.
Anchor Loans
Fast funding (often within 5-10 days), experience in high-value loans.
Focuses on experienced investors; requires substantial down payments for new investors.
Known for fix-and-flip loans and excellent customer service.
RCN Capital
Flexible terms, offers loans for short-term and long-term rental properties.
Application and underwriting process may take longer compared to peers.
Good mix of fix-and-flip and rental property loans with competitive terms.
Lender
Website
Pros
Cons
Laura's Notes
Kiavi (formerly LendingHome)
Streamlined process, pre-approval in minutes, competitive rates for experienced investors.
New investors might face higher rates; limited to certain markets.
Great for investors looking for fix-and-flip or rental property loans.
Lender
Website
Pros
Cons
Laura's Notes
Do Hard Money
100% financing for qualified deals, no credit score requirements
Stringent deal qualifications; higher rates for inexperienced investors.
Offers rehab loans and great educational resources.
Lender
Website
Pros
Cons
Anchor Loans
Fast funding (often within 5-10 days), experience in high-value loans.
Focuses on experienced investors; requires substantial down payments for new investors.
Known for fix-and-flip loans and excellent customer service.
Laura's Notes
Lender
Website
Pros
Cons
RCN Capital
Flexible terms, offers loans for short-term and long-term rental properties.
Application and underwriting process may take longer compared to peers.
Good mix of fix-and-flip and rental property loans with competitive terms.
Laura's Notes
Lenders marked with ** are partners we have actually worked with and taken loans from for projects/deals.
You asked for it, and here it is—my personal curated list of go-to lenders across three powerful funding categories: Hard Money Lenders, Private Money Lenders, and DSCR Loan Providers. These resources have been game-changers for me and countless others in unlocking real estate opportunities through Other People’s Money (OPM).
A more detailed list and explanation are available on desktop view.
Lenders marked with ** are partners we have actually worked with and taken loans from for projects/deals.
PRIVATE LENDERS
Private money loans are flexible and often based on personal relationships or small private investment firms.
Lender
Website
Pros
Cons
Laura's Notes
PrivateLenderLink
Directory for private lenders across the U.S.; easy to find localized options.
Quality and terms of private lenders vary significantly.
A platform to connect with private lenders.
Connected Investors
Network-based platform with access to individual private money lenders.
Loans depend on the network’s participants; not a direct lender.
Offers tools for networking and finding private capital.
Cogo Capital
Transparent fees, caters to first-time investors.
Limited availability in certain states.
Offers hands-on support for new investors.
Fairview Lending
No upfront fees, offers flexible underwriting and terms.
Requires detailed project evaluations, may not be ideal for first-timers.
Focuses on investment property loans and offers quick closings.
The Norris Group
Focused on California and Florida markets, offers competitive private money terms.
Limited to specific states and regions.
Ideal for investors in these key markets looking for fix-and-flip loans.
Lender
Website
Pros
Cons
Laura's Notes
Connected Investors
Network-based platform with access to individual private money lenders.
Loans depend on the network’s participants; not a direct lender.
Offers tools for networking and finding private capital.
Lender
Website
Pros
Cons
Laura's Notes
Cogo Capital
Transparent fees, caters to first-time investors.
Limited availability in certain states.
Offers hands-on support for new investors.
Lender
Website
Pros
Cons
Fairview Lending
No upfront fees, offers flexible underwriting and terms.
Requires detailed project evaluations, may not be ideal for first-timers.
Focuses on investment property loans and offers quick closings.
Laura's Notes
Lender
Website
Pros
Cons
The Norris Group
Focused on California and Florida markets, offers competitive private money terms.
Limited to specific states and regions.
Ideal for investors in these key markets looking for fix-and-flip loans.
Laura's Notes
DCSR LOANS
Debt-Service Coverage Ratio (DSCR) loans are popular for real estate investors focusing on rental income properties.
Lender
Website
Pros
Cons
Laura's Notes
Visio Lending
Focused exclusively on DSCR loans, ideal for rental property investors.
High credit score requirements; rates may be higher than traditional loans.
Great for scaling rental portfolios; no personal income verification required.
CoreVest
Flexible terms, competitive rates, and tailored DSCR products.
Stringent qualifications for some products.
Specializes in rental property and portfolio loans.
LendingOne
Streamlined DSCR process, customizable loan terms.
Somewhat higher interest rates compared to traditional banks.
Excellent customer service and quick closings.
North Avenue Capital
High-value DSCR loans, flexible terms for unique investment opportunities.
Focuses on larger loan sizes and experienced investors.
Good for scaling up real estate portfolios.
Angel Oak Mortgage Solutions**
- Offers a range of DSCR loan programs tailored to real estate investors.
- Accepts non-traditional income verification methods, making it investor-friendly.
- Competitive interest rates and loan terms for long-term rental property investments.
- Experienced in handling complex borrower profiles, including those with multiple properties.
- May require higher down payments compared to some competitors.
- Slightly longer underwriting process due to customized loan solutions.
Angel Oak is well-regarded for working with investors who might not qualify for traditional financing. Their expertise in DSCR loans ensures flexibility, making it a solid option for expanding your portfolio strategically.
Lender
Website
Pros
Cons
Laura's Notes
CoreVest
Flexible terms, competitive rates, and tailored DSCR products.
Stringent qualifications for some products.
Specializes in rental property and portfolio loans.
Lender
Website
Pros
Cons
Laura's Notes
LendingOne
Streamlined DSCR process, customizable loan terms.
Somewhat higher interest rates compared to traditional banks.
Excellent customer service and quick closings.
Lender
Website
Pros
Cons
North Avenue Capital
High-value DSCR loans, flexible terms for unique investment opportunities.
Focuses on larger loan sizes and experienced investors.
Good for scaling up real estate portfolios.
Laura's Notes
Lender
Website
Pros
Cons
Angel Oak Mortgage Solutions
- Offers a range of DSCR loan programs tailored to real estate investors.
- Accepts non-traditional income verification methods, making it investor-friendly.
- Competitive interest rates and loan terms for long-term rental property investments.
- Experienced in handling complex borrower profiles, including those with multiple properties.
- May require higher down payments compared to some competitors.
- Slightly longer underwriting process due to customized loan solutions.
Angel Oak is well-regarded for working with investors who might not qualify for traditional financing. Their expertise in DSCR loans ensures flexibility, making it a solid option for expanding your portfolio strategically.
Laura's Notes
CREATIVE FINANCING
Here’s an overview of other types of creative financing strategies that you can consider for real estate investment:
METHOD : SELLER FINANCING**
WHAT IT IS:
Seller financing occurs when the property seller acts as the lender and directly finances the purchase for the buyer. Instead of going through a traditional lender, the buyer makes payments to the seller over time, typically with interest.
PROS:
- Flexible terms and conditions.
- Faster closing since no third-party lenders are involved.
- Can be a solution for buyers who may not qualify for traditional financing.
CONS:
- Typically requires a large down payment.
- Sellers may want to ensure their own protection through a higher interest rate.
- If the seller’s financial situation changes, it can impact the loan.
METHOD : SUBJECT TO**
WHAT IT IS:
"Subject to” involves purchasing a property subject to the existing financing. In this case, the buyer takes over the seller’s mortgage payments without formally assuming the loan. The loan stays in the seller’s name, but the buyer controls the property
PROS:
- No need for new financing or credit checks.
- Can be a way to acquire property with minimal cash outlay.
- Opportunity to take advantage of low interest rates if the original loan is favorable.
CONS:
- The seller remains liable for the mortgage if the buyer defaults.
- May be challenging to find sellers willing to use this strategy.
- The existing loan may have clauses that make it difficult or impossible to use "subject to."
METHOD : Partnerships /Joint Ventures
WHAT IT IS:
A partnership or joint venture involves teaming up with another investor or group of investors to pool resources, expertise, and capital to invest in a property or project. Partners share the risks, rewards, and responsibilities.
PROS:
- Can provide access to capital, expertise, and resources you may not have on your own.
- Risk is shared, reducing individual liability.
- Often helps with larger projects that would be difficult to handle alone.
CONS:
- Profits are split among partners, so you’ll earn less than if you were solo.
- Conflicts between partners can arise if roles and expectations aren’t clearly defined.
- Each partner’s creditworthiness and financial situation may impact the venture.
METHOD : SYNDICATION**
WHAT IT IS:
Real estate syndication involves pooling funds from multiple investors to acquire large properties or projects. The syndicator (the sponsor or organizer) is responsible for managing the property, while investors (limited partners) provide capital in exchange for a share of the profits.
PROS:
- Access to large-scale commercial or multifamily properties that you couldn't afford on your own.
- Passive income for investors—most of the work is handled by the syndicator.
- Ability to diversify into larger, more profitable properties.
CONS:
- Investors have limited control over the property’s management.
- Fees paid to syndicators can be substantial, reducing the overall return.
- Not all syndication deals are successful; investors could face financial losses.
METHOD : 1031 EXCHANGE**
WHAT IT IS:
A 1031 Exchange allows you to defer capital gains taxes on an investment property when it is sold, as long as the proceeds are reinvested into a like-kind property. This strategy is useful for investors looking to trade up in value or diversify their portfolio without paying taxes immediately.
PROS:
- Allows for tax-deferred growth by reinvesting gains into other properties.
- Helps investors defer taxes, preserving more capital for future investments.
- Flexible in terms of the types of properties eligible for exchange.
CONS:
- Strict timelines and rules must be followed.
- You cannot access the sale proceeds directly; the funds must be held by a qualified intermediary.
- Limited to investment properties and can't be used for personal residences.
OTHER PROGRAMS/ LOANS
Here’s an overview of various programs, loans, and government-backed options that can help you in your real estate journey
METHOD : Self-Directed IRAs (Individual Retirement Accounts)
WHAT IT IS:
A Self-Directed IRA allows investors to use their retirement savings to invest in a variety of assets, including real estate. It provides more control and flexibility, enabling investments in properties, notes, and other non-traditional assets.
PROS:
- Tax-deferred growth or tax-free growth (for Roth IRAs).
- Diversification of retirement portfolio through real estate and other alternative assets.
- Potentially high returns from real estate investments within the IRA.
CONS:
- Strict IRS rules for managing self-directed IRAs; violations can result in penalties.
- No personal use of the properties purchased within the IRA.
- Must use a qualified custodian to manage the account, which can come with fees.
- Requires patience and strategic planning, as it can take time for real estate investments to mature.
METHOD : FHA 203(k) Loans
WHAT IT IS:
The FHA 203(k) loan is a government-backed mortgage program designed for homebuyers who want to purchase and renovate a property. It allows you to finance both the purchase of the property and the cost of repairs or renovations in a single loan.
PROS:
- Low down payment requirements (as low as 3.5%).
- The loan covers both the purchase and renovation costs.
- Ideal for fixer-upper properties and first-time homebuyers.
- Typically easier to qualify for compared to conventional loans.
CONS:
- Only available for primary residences (not for investment properties).
- The renovation work must be completed by licensed contractors.
- Can be slower to close due to additional paperwork for renovation plans.
- Some renovation costs may need to be pre-approved, limiting flexibility.
METHOD : HELOC (Home Equity Line of Credit)
WHAT IT IS:
A HELOC is a revolving line of credit secured by the equity in your home. It allows you to borrow funds against your home’s value for any purpose, including home improvements, debt consolidation, or investing in real estate.
PROS:
- Flexible borrowing—borrow as needed, up to the credit limit.
- Typically lower interest rates than personal loans or credit cards.
- Can be used for a variety of purposes, including real estate investments.
CONS:
- Your home is collateral, so failing to repay the loan could lead to foreclosure.
- Variable interest rates can increase over time, making it harder to predict costs.
- HELOCs may have high fees and closing costs.
- The amount of credit available may be limited based on your home’s equity and creditworthiness.
METHOD : USDA LOANS
WHAT IT IS:
USDA loans are government-backed loans for homebuyers in rural and suburban areas. These loans are designed to encourage development in rural communities and offer benefits such as no down payment and lower mortgage insurance costs.
PROS:
- No down payment required, which makes it accessible for buyers with limited funds.
- Lower interest rates and mortgage insurance costs compared to conventional loans.
- Available to lower- and moderate-income buyers.
- Can be used for both new construction and existing homes.
CONS:
- Property must be in an eligible rural or suburban area.
- Income limits apply, and the borrower’s debt-to-income ratio must meet certain criteria.
- Limited to primary residences—no investment properties allowed.
- The loan process can be slow due to government processing.
METHOD : VA LOANS
WHAT IT IS:
A VA loan is a mortgage loan program available to current and former military service members and their families. These loans are backed by the U.S. Department of Veterans Affairs and offer favorable terms, including no down payment and no private mortgage insurance (PMI).
PROS:
- No down payment required, making homeownership accessible for veterans.
- No PMI, which lowers monthly payments.
- Competitive interest rates and more favorable terms than conventional loans.
- Flexible credit score requirements.
CONS:
- Only available to veterans, active-duty military, and eligible surviving spouses.
- The property must meet certain VA standards, which may require additional inspections and repairs.
- A funding fee is charged (though it can be rolled into the loan amount).
- Limited to primary residences—cannot be used for investment properties.
METHOD : CASH OUT REFINANCE**
WHAT IT IS:
A cash-out refinance allows homeowners to refinance their mortgage for a higher amount than what is owed and take the difference in cash. This option can be used to access home equity for any purpose, including real estate investing.
PROS:
- Potentially lower interest rates compared to personal loans or lines of credit.
- Can access a large amount of equity for major investments.
- Interest is tax-deductible if used for investment purposes.
CONS:
- Increases the mortgage balance, which may extend the term or increase monthly payments.
- Risk of foreclosure if the loan is not repaid.
- Requires sufficient home equity to qualify for the cash-out amount.
ADDITIONAL METHODS AVAILABLE VIA DESKTOP VIEW
NOTE FROM ME TO YOU:
I hope this guide provides clarity and direction as you take the next step in your real estate investment journey. With these lenders and creative financing options, you now have the tools to start reaching out and securing the funding needed to close your first deal, or scale to new heights.
The key to success in real estate investing is leveraging Other People’s Money (OPM) effectively. When paired with the BRRRR method (a proven and popular strategy for building and scaling a real estate portfolio) you’ll have the ultimate formula for success.
OPM + BRRRR = Your Path to Financial Freedom.
Don’t wait for the “perfect” moment to start. Take action today! Enroll in the BRRRR Course HERE, where I’ll guide you step-by-step through using OPM and the BRRRR strategy to grow your real estate portfolio faster than you thought possible.
You’ve got this. Let’s turn your goals into reality and build the future you deserve
