Real Estate Investing Dictionary

Private Lending Fund

Private lending is a broad term that encompasses individual lenders funding deals directly through hard money loans as well as investing their private money into pooled lending funds. Both private lending for individual loans and investing in a Fund require trust deeds which secure the loans with real estate as collateral. The Investor’s Source provides opportunities for hard money lending to individual investors as well as investing in our Private Lending Fund #1.

Private Lending with our Fund

The Investor’s Source Private Lending Fund #1 is an SEC compliant 501 C fund that invests in high interest rate, short term, high quality loans secured by real estate.

The Fund pools investments from many investors and spreads those funds over several loans at any time. This provides diversification for all investors.

  • Borrowers and projects are vetted using strict underwriting criteria to emphasize safety.
  • Projects are closely monitored, and rehab or construction funds are distributed as work completes.
  • Investors in the fund must be accredited, meaning that they meet certain requirements set by the SEC.

The targeted overall annual return to real estate investors in the Fund is between 8% and 12% - however, these returns are not guaranteed.