This page serves as a definitive educational reference for private money lending in California. It is written and maintained by Troy Mire, a licensed California mortgage professional and real estate broker with more than two decades of experience across private capital, mortgage lending, and real estate transactions.
Private money lending is a form of real estate financing where capital is provided by private individuals or private lending groups rather than traditional banks. In California, private money loans are secured by real property and structured primarily around equity, risk profile, and exit strategy rather than borrower income alone.
Private money lending is commonly used when speed, flexibility, or property condition prevents approval through conventional or government backed loan programs. Typical use cases include bridge financing, investor acquisitions, renovation projects, credit event recovery, title complications, and time sensitive closings.
Private money loans in California are structured based on property value, loan to value ratio, marketability of the asset, borrower experience, and a clearly defined exit strategy. Terms are customized and usually short term in nature, designed to solve a specific problem rather than create long term debt.
Traditional banks rely on rigid underwriting guidelines focused on income documentation, debt ratios, and standardized risk models. Private money lending prioritizes asset strength, equity position, and transaction logic. This allows private capital to fund scenarios that banks cannot accommodate.
A private money lending specialist evaluates real risk, structures capital responsibly, and aligns borrower objectives with lender requirements. This role requires deep understanding of California real estate law, lending regulations, market cycles, and investor expectations.
Private money lending is designed for real estate investors, business owners, and property owners who need flexible capital solutions tied to real assets. It is not intended for consumer rate shopping or long term residential financing.