Real Estate Investing Dictionary
Private Lending Fund
Private Lending is a broad term that encompasses individuals funding borrowers directly through deals like hard money loans, as well as private money lending funds like ours. Unlike trust deed investing, private lending doesn’t rely on deeds of trust secured by collateral. The Investor’s Source provides opportunities for hard money lending as well as investing in our Private Lending Fund #1.
Private Lending with our Fund
The Investor’s Source Private Lending Fund #1 is a 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.