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Private Lender

What is Private Lender?

Private money loans are usually secured by a note or deed of trust for real estate transactions. Private lenders have their own lending qualifications with guidelines that apply to all applicants regardless of race, sex, ethnic background, etc.

Private lending, also known as hard money lending, can charge high interest rates and require more money down because borrowers benefit from the non-institutional lending standards. Also, private lenders will lend on properties that banks won’t lend on, i.e. distressed properties. It is common in a private loan to see interest rates in the teens with down payments of 40%-50%.

Example of a Private Lender

You will typically see private loans issued for the exact amount of time needed to buy, repair and sell a property. Take a fix and flip plan for example, where a foreclosed property is listed at $100,000. As far as the condition of the property goes: the slab of foundation is cracked and the roof needs to be replaced for the property to be considered quality again. A fix and flip investor is looking at anywhere between $15,000 to $25,000 worth of work in repairs, as is. The investor in this example may see promise in a property such as this, because after $25,000 to $30,000 in repairs are completed, the property could sell for $200,000. A private lender in this example may agree to this plan and issue a $135,000 loan.

Let's assume the investor has the repairs done right away and turns around to sell the property in three months, we're looking at a breakdown of:

  • Loan Amount: $165,000
  • Acquisition price: $120,000
  • Repairs: $45,000
  • Loan costs (including miscellaneous fees): $9,000
  • Selling costs : $11,000
  • Final sales price: $235,000
  • Net to investor: $45,000

The private lender is almost always focused on the outcome of the deal, so the investor’s plan and exit strategy are very important. Like the investor, the private lender is concerned with repayment and profit, which is why private lenders may not concern themselves with credit scores or other traditional lending criteria.

In Summary

Private lending and private lenders tend to focus on nontraditional lending criteria when issuing a private loan. If an applicant or potential investor has a good plan of execution, this may be the driving factor behind a loan approval. Private lenders are also very popular in the distressed property sector. Fix and flip real estate deals, that banks won’t touch, give private lenders a portion of the lending market for that niche investor to capitalize on. If you are interested in investing in a fix and flip real estate investment, or require short term funding for a real estate investment, use of a private lender may be right for you. It is important you shop around when looking for the right private lender, as lending criteria varies with interest rates and required money down.

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  • A completely new alternative to investing in stocks and bonds.

    Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved.

    CityVest can help you:

    • EARN PASSIVE RETURNS OF 10% TO 25%

      You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.

    • ACCESS INSTITUTIONAL QUALITY FUNDS

      CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.

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      Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.

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      CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.

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Please read the important disclosures below.

CityVest.com is a website owned by CityVest Platform Services LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). CityVest's software and technology web platform is used by real estate sponsors to advertise to interested parties information related to sponsors’ own real estate opportunities. By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service. By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service.

CityVest Platform Services is paid a fixed platform fee by investment management funds. In addition, CityVest Platform Services is paid fees by investment management funds for administrative services including anti-money laundering verification (AML) and accreditation verification. None of these fees are paid by investors to CityVest.

The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any entity included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

CityVest and its affiliates are not registered as a a broker-dealer, registered investment advisor, or crowdfunding portal. Unless stated otherwise in writing, CityVest and its affiliates do not offer brokerage or investment advisory services to website visitors.

The information contained herein is provided for general informational and educational purposes only and is not a substitute for professional advice.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

Although not included or provide here, website visitors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about the investment manager’s detailed financial and information material that is provided by the issuer. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose.

Articles or information from third-party media outside of this domain may discuss CityVest or relate to information contained herein, but CityVest does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by CityVest of the linked or reproduced content. CityVest has relationships with third parties that may be paid compensation for informational, educational, marketing, testimonial, advertising, or promotion services about opportunities listed at the CityVest website. Given that such third parties are or have been compensated, they may have a real or potential inherent conflict of interest in disseminating information about CityVest. Such third parties could include, but are not limited to, Google, Facebook/Meta, LinkedIn, Yahoo, Benzinga or informational websites. Such compensation would be a cash payment and may be paid in a variety of methods including, but not limited to: a monthly fee, number of click through to the CityVest website, number of people viewing, expressions of interest, email contacts, sign-up forms, and other methods. Any information that you may have read from CityVest or a third party does not constitute or imply endorsement, sponsorship or recommendation thereof.

Investing in securities or real estate (the "Investments") poses risks, including but not limited to market risk, credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Investments are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments. Nothing on this website should be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.

CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. CityVest is not participating in the pPrivate placement of any securities, which would be made exclusively by the issuer. Private placements of securities are not publicly traded, are only for accredited investors, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Information presented or posted on CityVest.com is qualified in its entirety by reference to the more complete information contained in the relevant issuer’s investment documents. The information on CityVest.com is not complete, and each prospective investor should carefully read all of the investment documents and any supplements thereto, copies of which are available directly from the relevant issuer. These documents should be reviewed before deciding whether to make an investment. All information, including Issuer Information, presented or posted on CityVest.com should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between any information, including issuer information, presented or posted on CityVest.com on one hand, and the relevant investment documents on the other, investors should rely on the information contained in the investment documents – which is only available from the issuer. The information on CityVest.com is subject to changes at the sole discretion of CityVest.

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FORWARD-LOOKING STATEMENTS

The presentation at the CityVest.com website includes information provided to CityVest by the fund being described. It contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express fund manager’s current views concerning future events, trends, contingencies or results, appear at various places in this presentation.

Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “targets,” “plans,” “may,” or other similar words (including their use in the negative). Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this presentation. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause the fund’s actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

■ Increases in the Company’s borrowing costs as a result of inflation and increasing interest rates and other factors;
■ Changes in real estate market and general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, and the effect of those changes on the Company’s or revenues, earnings and Offering sources;
■ The ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases, the Company’s ability to reposition its units on the same or better terms in the event of nonrenewal, including in the event of a recession;
■ Our ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
■ The Company’s limited operating history;
■ The Company’s success in implementing its business strategies;
■ The nature and extent of future competition, including new construction in the markets in which the Company and its facilities are located;
■ The Company’s reliance on key personnel;
■ The Company’s reliance on third-party vendors of technology, in particular the technology used to process and collect payments, or in the Company’s self-service kiosks or unmanned onsite operations and management;
■ Risks associated with the lack of liquidity of the Company’s securities; and
■ The impact of litigation or any financial, accounting, legal, tax or regulatory issues that may affect the Company or its tenants.

The factors noted above are not exhaustive. The Company operates in a dynamic business environment in which new risks emerge frequently. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s Private Placement Memorandum, which you should read before deciding to invest.