Why Private Lending is a Game-Changer for Real Estate Investors

Josh Perez • March 27, 2025

"If you're only mortgaged through big banks and A lenders, you may not be accelerating your wealth-building plan as quickly as possible."

If you're a real estate investor who has only worked with big banks and A lenders, you may be limiting your potential for wealth building. While traditional financing works well for standard property purchases, some of the most lucrative real estate opportunities—such as distressed properties in need of significant renovations—require a different approach.

The Challenges of Traditional Lending

Investing in properties that need major improvements can be a powerful strategy to build wealth, but there are challenges that often deter investors:

  • High Capital Requirements – Many of these deals require a substantial upfront investment for both the down payment and renovation costs.
  • Strict Lending Criteria – Traditional lenders, including A and most B lenders, are hesitant to finance properties in poor condition.
  • Limited Flexibility – Many banks have rigid lending structures that don’t accommodate unconventional investment strategies like fix-and-flips or BRRRR (Buy, Rehab, Rent, Refinance, Repeat).

The Power of Private Lending

This is where private lenders, like Calvert Home Financing, come into play. Unlike big banks, private lenders specialize in funding real estate investments that require creative financing solutions. They understand the value of distressed properties and offer more flexible loan structures tailored to investors looking to maximize their returns.

Some key benefits of working with private lenders include:

  • Higher Loan-to-Value (LTV) Ratios – Private lenders can exceed 80% LTV for the right project, reducing the capital you need upfront.
  • Access to Construction Funds – Many private lenders will fund renovation costs, making it easier to complete value-adding improvements.
  • Fast and Flexible Approvals – Unlike traditional banks that take weeks to process applications, private lenders can approve and fund deals much quicker, allowing you to act on time-sensitive opportunities.

Learn How to Use Private Lending to Your Advantage

We’ve partnered with the experts at Calvert Home Financing to host a free webinar on Thursday, September 15th. This event will provide valuable insights into when and how borrowing privately makes sense for your investment strategy.

If you're looking to scale your real estate portfolio, optimize your financing strategy, and take advantage of opportunities that others pass up, this is a must-attend event.

Josh Perez
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Deposit Lending And Bridge Financing

By Josh Perez • April 30, 2025
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Should You Double Down or Diversify in Real Estate Investing?

By Josh Perez • April 30, 2025
If you’re crushing it with duplex conversions, Airbnb rentals, flips, or student housing, you might be wondering: Should I double down on what’s working—or start learning about other strategies to diversify my real estate portfolio? It’s a great question—and one I get asked all the time. My typical advice? Double down on your strengths, outsource your weaknesses. If you’ve found a strategy that fits your skills, market, and cash flow goals, it’s smart to build momentum. But in real estate—especially in today’s market—it’s just as important to stay informed and flexible. Why Staying Educated Matters Real estate isn’t static. The rules of the game are constantly changing. Lending practices shift. Local bylaws evolve. What worked flawlessly last year may become less profitable—or even unviable—this year. Here’s what I mean: “If lenders and banks don’t want to lend as much on certain assets—like student rentals or short-term rentals—or they start to clamp down on duplex conversions, that changes your rate of return. That changes the rules of the game.” If your entire strategy depends on leverage (and let’s face it, most real estate investing does), changes in financing can dramatically shift the effectiveness of your current approach. Keep Learning, Stay Adaptable Even if you’re succeeding now, always keep learning. New strategies like BRRRR, rent-to-own, mid-term furnished rentals, or commercial opportunities might offer different advantages in changing markets. You don’t need to master them all, but you do need to understand how they work—and when it might make sense to pivot. Final Thoughts Crushing one niche? Keep going. But don’t ignore the bigger picture. As markets evolve, being aware of shifting rules, lender policies, and local regulations will give you the edge.  At the end of the day, the best investors aren’t just good at one strategy—they’re nimble, informed, and proactive. If you want to chat about how to strengthen your current investments and position yourself for what’s next, let’s connect.