What is Private Lending?

Simply put, private lending is an alternative to using big banks or mortgage lenders. Instead, private lending is funded by individual investors lending their own money to other investors or professionally managed real estate products. Private lending is also referred to as hard money lending.

Typically, financing for real estate comes from banks, government agencies like the VA or FHA for example, insurance companies, or even pension funds. For a real estate investor, these aren’t the most beneficial options because of all the red tape that comes with them. This can include strict requirements, a tight timeline, or additional paperwork.

Real estate investors need a more streamlined and faster process, and from this need, the market for alternative lending sources developed. Investors with ample assets are now able to serve other investors in a way that large institutions can’t.
Since its beginning, private lending has become a critical part of real estate investing.

The Benefits of Private Lending

Private lending allows you to secure a loan with real estate that is worth far more than the loan you provide. If you are interested in investing in real estate, this can be less risky than owning the property outright.

There are several benefits to participating in private lending, one of which is mitigating risk while creating wealth. Here are several more.

● Private lending often earns more than traditional investing.
● If the borrower defaults, the private lender can secure the collateral through foreclosure.
● Private lenders avoid the headaches of renting or flipping by directly investing in real estate rather than having to own and maintain properties.
● A private lending investor is able to move money in and out at will because the turnaround on this type of investing is fast.
● Private lending is potentially more secure than other types of investing because the investor holds the borrowers’ assets as collateral.

The BlueKey Approach to Private Lending

At BlueKey Equity Partners, our private lending strategy is available in two platforms designed to enhance value for the investors, partners, and family offices we serve.

Platform One - Personalized Mortgage Pools

Suitability: Family Offices and High Net Worth Individuals
Investor Profile: Investors who prefer a customized private lending strategy
What We Provide: Assistance in all aspects of an investment program including:

• Sourcing

• Underwriting

• Tax Reporting

• Servicing of private lending

Platform Overview: This unique platform provides flexibility each individual investor’s unique situation and offers more control of their private lending investments.

Minimum Investment Commitment:  $2,000,000.

Platform Two - BlueKey Capital Lending, LLC

Suitability: Investors with <$2,000,000 of investable assets.
Investor Profile: Investors who want to get into private lending but have less than $2,000,000 to invest.
What We Provide: Our seasoned team will implement all aspects of the fund freeing the investors from the day-to-day management issues.
Platform Overview: The private lending platforms mainly invest in primary positions on commercial properties.
Minimum Investment Commitment:  $100,000-$200,000
Required Forms: