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Private Money Lenders: Wholesalers’ Best Friends in Real Estate

Private Money Lenders: Wholesalers’ Best Friends in Real Estate

Real estate wholesaling has become a lucrative venture for those looking to break into the real estate market without making a significant capital investment. Wholesalers act as intermediaries, connecting distressed property sellers with real estate investors seeking below-market deals. One critical element that contributes to the success of real estate wholesalers is their ability to help secure fast funding for their clients. Successful fix and flip projects require a private or hard money lender who understands the real estate market. Hard money lenders tend to understand the need to close on an investment property quickly. This is where private money lenders, such as RBI Private Lending that primarily serves Florida, Texas, New York, Virginia, Georgia, Illinois, Tennessee, Kansas, and Alabama, play a pivotal role in fostering mutually beneficial partnerships, even in a down market.

Understanding Real Estate Wholesaling

What does a wholesaler do in real estate?

In the realm of real estate wholesaling, wholesalers essentially play the role of middleman whereby they bring together owners of distressed properties and investors looking for below-market real estate deals from which they can profit. The wholesaler enters into a purchase contract for a seller’s property, sometimes accompanied by a small earnest money deposit. The contract identifies the amount of money the wholesaler will sell the property for as well as the required time period allotted for the sale of the real estate transactions. The wholesaler then locates an interested investor to buy it – assigning their contractual rights to the investor at a higher price than the one initially contracted with the seller, and then pocketing the difference. This kind of transaction also allows investors to turn a profit without taking ownership of the property.

Efficient real estate wholesalers benefit the home seller, the real estate agent working on their behalf, and the community. They help the seller realize the true market value of the property and make it available to fix and flip investors. They use their skills to find real estate investment properties, bringing together sellers, investors, and contractors. The key to the process is partnerships with the best hard money lenders like RBI Private Lending. 

How does a beginner invest in real estate?

Real estate wholesaling allows beginners or experienced real estate investors to enter the real estate wholesaling market with little to no capital investment. With experience, wholesalers can manage multiple deals simultaneously, turning a quick and sizable profit. Hard money loans, as opposed to traditional loans, can be used for the down payment, allowing the real estate investor to bid on multiple investment properties and preserve their cash reserves. However, real estate wholesaling involves a certain amount of risk, especially if a wholesaler needs to make earnest money deposits and/or needs to secure fast and reliable funding.

Nevertheless, the potential to make money is there for those who commit to the time and effort required to build a wholesale real estate business. The key is to find a good private lender to work with.
Is wholesaling real estate worth it?

In a word yes! Real estate wholesalers discover the untapped potential of distressed properties with the help of real estate agents, hard money lenders, and fix and flip investors. These experts not only ensure that sellers get the true market value for their home, but also connect with savvy fix and flip investors. By bringing together sellers, investors, and contractors, you ensure a seamless and prosperous real estate journey for all parties involved. Don’t miss out on maximizing your profits in today’s competitive market – let RBI Private Lending pave the way to success.

Can you do wholesale real estate with no money?

Yes, it is possible to engage in wholesale real estate with little to no money, although it requires a different approach than traditional real estate investing. Wholesale real estate involves a wholesaler contracting a home with a seller and then finding an interested party to buy it. The wholesaler makes a profit by selling the contract to a buyer for more than the original contract price with the seller. Here’s how you can do it with minimal or no money:

  1. Find a Property to Wholesale: Look for properties that are underpriced, often due to needing repairs or because the owner wants to sell quickly. This can be done through networking, direct mail campaigns, or searching online listings.
  2. Negotiate a Contract: Once you find a suitable property, negotiate a purchase contract with the seller. It’s important to ensure that the contract includes a clause allowing you to assign the contract to another buyer, which is key to the wholesaling process.
  3. Earnest Money: Normally, a small amount of earnest money is needed to secure the contract. However, it’s possible to negotiate terms with the seller where little to no earnest money is required. If earnest money is required, your hard money lenders will often partner with you if your property is a viable fix-and-flip project to help protect your cash flow. Carefully consider any upfront fees required by the seller or others.
  4. Find a Buyer: The next step is to find a buyer willing to purchase the property at a higher price than the one you negotiated with the seller. This can be done through your network, real estate investors’ groups, or marketing the property online. To succeed, you should have a network of fix and flip or other real estate investors who will purchase the home in the agreed-upon time frame. Again, this is where your hard money loan pros can help you. Your buyer will require funds for the minimum down payment, the loan term and loan amount they will need, and the value of the property after repair. Often RBI can provide a hard money loan to your buyer.
  5. Assign the Contract: Once you find a buyer, you assign them your purchase contract. The buyer then proceeds to close the deal with the original seller. Hard money lenders are often a part of financing the property sale of the fix and flip investment property.
  6. 6. Profit Without a Large Investment: Your profit is the difference between what the buyer pays and what you agreed to pay the seller. Since you’re not actually purchasing the property yourself, you don’t need a large amount of capital.
  7. Legal Considerations and Transparency: It’s essential to be transparent with both the seller and the buyer about your role as a wholesaler. Also, familiarize yourself with the legalities of wholesaling in your region, as regulations can vary.

While this makes it sound straightforward, successful wholesaling requires good knowledge of the real estate market, strong negotiation skills, and the ability to quickly find interested buyers. It’s also a field where building a good reputation and a strong network is crucial.

The Role of Private Lenders in Wholesaling Success

Private lenders are the unsung heroes in the world of real estate wholesaling. These financial partners play a crucial role in facilitating quick and seamless transactions. Here’s how private lenders, such as RBI Private Lending, contribute to the success of wholesalers:

1. Fast Funding for Fix and Flip Properties:
Private lenders understand the time-sensitive nature of fix and flip projects. Unlike traditional banks and a traditional loan that may take weeks to approve and fund a loan, private lenders can expedite the process, allowing wholesalers’ clients to close deals within a matter of days. This speed is a game-changer in the competitive real estate market.

2. Common Sense Rules for Lending Decisions:
Private lenders employ a pragmatic approach to lending decisions. They assess the potential of a deal based on common sense and practicality rather than imposing stringent criteria as is the case for a traditional loan. This flexibility enables wholesalers’ clients to navigate deals more efficiently and seize opportunities that might be overlooked by traditional lenders. Because many of their loans revolve around the after repair value, we understand what you need to make a hard money loan work.

3. Minimal Hurdles for Buyers:
Traditional loan financing often involves a series of hurdles and complex requirements. Private lenders streamline this process, making it easier for buyers to secure the necessary funds. This simplicity not only expedites the deal but also enhances the overall experience for the buyer, making them more likely to engage in future transactions.

4. Flexible Terms and Funding Arrangements:
Private lenders recognize that every real estate deal is unique. They offer flexible terms and funding arrangements tailored to the specific needs of wholesalers and their clients. This adaptability ensures that the financing aligns with the dynamics of each fix and flip project.

5. Unlimited Deal Potential:
Collaborating with private lenders opens up a world of unlimited deal potential for wholesalers. They can simultaneously work with multiple buyers on various properties, expanding their business and increasing profitability. This scalability is a significant advantage in a market where agility is key.


Borrowing from a private lender can be safe, but it carries different risks and considerations compared to borrowing from a traditional financial institution like a bank or credit union. Here are some key points to consider when deciding whether a private or hard money lender is your best option:

  1. Legitimacy and Reputation: Research the lender thoroughly. Look for reviews, testimonials, and any history of legal issues. A legitimate hard money lender should have a solid track record and good reputation. Hard money lenders like RBI Private Lending have years of experience serving the hard money financing needs of customers just like you.
  2. Interest Rates and Terms: Private lenders often charge higher interest rates compared to traditional banks. Ensure you fully understand the loan’s interest rates, fees, and terms. Be wary of any lender who is not transparent about their terms or who charges excessively high rates. While hard money loan rates are typically higher than traditional mortgage lenders, their flexibility and speed will make a huge difference to a real estate investor or wholesaler.
  3. Legal and Regulatory Compliance: Check if the lender complies with state and federal lending laws.
  4. Contract and Agreement: Have a legal professional review any loan agreement before signing. Ensure all terms, conditions, and expectations are clearly defined and understood. You may wish to consult with a real estate attorney before closing and make sure you understand how hard money loans work.
  5. Collateral and Security: Be cautious if the loan requires you to put up significant collateral, like your home. Understand the implications if you’re unable to repay the loan. Hard money loans typically are based on the viability of your project and not your credit history or home equity.
  6. Purpose of the Loan: Consider why you are seeking a loan from a hard lender instead of a traditional bank. If it’s due to credit issues, assess whether taking on additional debt is a wise decision. Hard money loan terms will require that you stick to and execute your plan.
  7. Exit Strategy: Have a clear plan for repayment. Defaulting on a loan can have serious financial consequences, especially if you’ve provided collateral. Again, hard money lenders are focused on the shorter repayment period typically required by real estate investments or fix and flip contractors.
  8. Personal Comfort Level: If anything about the deal makes you uncomfortable or seems too good to be true, it’s worth taking a step back to reevaluate.
  9. Alternative Options: Explore other financing options. Sometimes, borrowing from a private lender is not the only solution, and other avenues might be a better match. Experienced hard money lenders will help you evaluate the suitability of your project for a hard money loan.

In summary, while borrowing from a private lender can be a great option, proceeding with caution is important. Ensure thorough due diligence, understand all the terms, and consider seeking advice from financial advisors or a real estate attorney. Quality hard money lenders will help you succeed with your real estate investment as they want to partner with you for many years and projects.

Borrowing money from a private lender involves several steps. Here’s a general guide on how to proceed:

  1. Identify Potential Lenders: Private lenders can be individuals or private lending companies like RBI Private Lending. They might be found through networking, real estate investment groups, online platforms, or personal contacts. Ensure any lender you consider has a good reputation and a history of legitimate lending.
  2. Evaluate Your Needs and Eligibility: Clearly understand how much you need to borrow and for what purpose. Private lenders may have different criteria for lending compared to traditional banks, often focusing more on the asset or the deal itself rather than your credit score. A hard money lender will have information on their loan programs and terms on their website.
  3. Prepare Your Documentation: Gather all necessary documents. This may include personal identification, proof of income, bank statements, credit reports, and details about the purpose of the loan (e.g., if it’s for real estate, details about the property). Your hard money lender will have a guide on the documentation you will need.
  4. Draft a Proposal: Present your case to the lender. This should include the amount you need, the reason for the loan, your plan for repayment, and any collateral you’re offering. Be clear and concise, and be prepared to answer questions about your financial stability, experience, and the risks involved in your project or investment.
  5. Negotiate Terms: If a lender is interested, they will propose terms for the loan, including interest rate, repayment schedule, and any fees. Negotiate these terms to reach an agreement that is fair and manageable for you. Pay special attention to any clauses about late payments, default, and what happens if you can’t repay the loan.
  6. Legal Review: Before signing any agreement, have it reviewed by a legal professional, especially if you’re putting up collateral like property. This step is crucial to ensure that the terms are legal and that you fully understand your obligations and rights.
  7. Formalize the Agreement: Once both parties agree to the terms, formalize the loan with a legally binding contract. This contract should detail every aspect of the loan agreement.
  8. Receive Funds: After signing the contract, the lender will provide the funds, usually via check or direct deposit into your bank account.
  9. Repayment: Adhere strictly to the repayment schedule. Late or missed payments can result in penalties or, in extreme cases, the loss of collateral.
  10. Keep Records: Maintain detailed records of all transactions, including payments made, for the duration of the loan.

It’s important to note that private lending can be riskier than borrowing from traditional financial institutions. Ensure you understand all the risks and terms, and consider seeking financial advice if you’re unsure about any part of the process.

Private lending refers to the practice of lending money to individuals or businesses by private individuals or entities, rather than through traditional financial institutions like banks or credit unions. This type of lending typically involves more personalized or less formal arrangements and can vary widely in terms of loan terms, interest rates, and eligibility criteria.

Hard money lending is an alternative form of finance where individuals or private entities lend money outside the traditional banking system. A hard money lender will often lend their own money, or money from investors who are interested in investing in private loans. While hard money loans offer flexibility, speed, and accessibility, it also involves higher risks and less regulatory oversight, making due diligence and clear agreements crucial for both parties involved.

A private lender is an individual or entity that lends money to borrowers outside of the traditional financial system of banks and credit unions. Private lenders can operate in various capacities and offer different types of loans. Here are examples of the services that RBI Private Lenders does:

  1. Provides Loans: The primary function of a private lender like RBI is to offer loans. These can be for various purposes, including real estate (like fix-and-flip or rental property investments), business ventures, bridge loans, or construction loans. (RBI does not offer personal loans.) RBI Private Lending’s primary focus is in providing hard money loans to the real estate industry, specifically to real estate investors and fix and flip businesses. It primarily provides loans to those in Florida, Texas, New York, Virginia, Georgia, Illinois, Tennessee, Kansas, and Alabama.
  2. Assesses Loan Applications: Similar to traditional lenders, when engaged in hard money lending private lenders evaluate loan applications. However, their assessment criteria might differ. They may focus more on the asset involved (particularly in real estate) or the potential profitability of a business venture rather than just the borrower’s credit score. Hard money lending give them the flexibility to focus on the project viability vs many of the factors that traditional mortgage loans require.
  3. Determines Terms and Conditions: A private lender sets the terms and conditions of the loan, including interest rates, repayment schedules, and any collateral requirements. These terms are often more flexible and negotiable compared to traditional bank loans or traditional mortgages.
  4. Manages Risk: Hard money lending involves higher risks. Lenders often manage this risk by charging higher interest rates or requiring collateral (such as property in real estate loans). They must assess the risk of each loan and decide whether it’s worth the investment. Many of their loans are construction loans, bridge loans, or other loan types specifically related to real estate investment. Therefore, they use their experience to evaluate the potential for success or failure of each proposed project.
  5. Provides Capital: Unlike banks, which use customer deposits to fund loans, private lenders typically use their own funds or pooled funds from investors. They provide capital directly to the borrower once the loan agreement is finalized. A hard money lender provides the loan amount, and sets the loan costs and loan terms.
  6. Engages in Legal and Regulatory Compliance: While private lenders are not as heavily regulated as banks, they still must comply with state and federal lending laws and regulations. This includes adhering to laws regarding interest rates, lending practices, and consumer protection.
  7. Maintains Loan Agreements and Collections: After disbursing a loan, private lenders are responsible for maintaining the loan agreement, collecting payments, and managing any issues like late payments or defaults. Your hard money lender will collect loan payments ( hard money loans often do not have monthly payments, but rather a balloon payment at the conclusion of your project or the end of your investment upon the sale of the property).
  8. Builds Relationships and Networks: Successful private lenders often build a network of borrowers and investors, and they may work closely with real estate professionals, lawyers, and financial advisors. At RBI we pride ourselves in the enduring relationship we have with our hard money loan clients. We look beyond a good credit score and financial history and focus on your project viability. Unlike conventional financing from a traditional lender, we are your partner and will help you establish relationships with others in our network of real estate investors, fix and flip contractors, and others that will help you grow your business. Unlike a traditional mortgage we can provide loans to purchase a property, as well as bridge loans and construction loans, all at an interest rate that allows our clients to grow their business.
  9. Offers Personalized Service: Private lenders can often offer more personalized service compared to traditional banks. They might be more willing to consider unique or unconventional loan proposals and can sometimes provide faster approval and funding processes.

Private lenders play a crucial role in providing alternative financing options. They have the flexibility to offer customized loan products but must balance this with risk management and legal compliance. For borrowers unable to secure traditional financing, private lenders can be a valuable resource.

The credit score requirement for a hard money loan can vary significantly depending on the lender. Hard money loans are typically more focused on the property and the investment potential rather than the borrower’s credit score. Some hard money lenders may not have a minimum credit score requirement at all, while others might set a minimum threshold. It’s essential to check with specific lenders, as their credit history requirements, if any, can differ. Generally, a higher credit score might result in more favorable loan terms and lower interest rates, but poor credit may not always be a crucial factor for hard money lending.

While traditional financing focuses on your credit history and score, RBI evaluates your project when considering your hard money loan. Of course you should consider multiple lenders, but we believe that you will find that RBI will beat any traditional lenders. Indeed we are confident that our closing costs, lack of prepayment penalties, interest rate, and upfront fees represent a real value without depending on your credit score.

RBI’s Private Lending and Wholesalers’ Success Stories

Here are four recent deals that were facilitated by RBI’s Private Lending, where it helped wholesalers’ clients secure funding for fix and flip properties quickly and efficiently.

A woman in the Orlando, Florida area wanted to get started in real estate investing and began with a fix and flip property as her first project. RBI provided the funding she needed for the fix and flip and when she sold it – in about two weeks – she made $30-40k.

An investor needed to make money from one property in order to buy another. RBI was able to close on both loans on the same day by providing a bridge loan so renovations could be made. She now buys turnkey properties and then rents them after they are refurbished. This particular deal took about three weeks to complete because it was an HOA condominium, and the associated approvals were needed.

An investor in Spring, Texas, wanted needed a bridge loan to purchase a $630,000 property. RBI Private Lending was able to fund the loan in 10 days.

An investor in Houston, Texas, was working on renovating a propery and needed a fix-and-flip- laon for $231,000. RBI Private Lending helped the investor close the loan within 14 days.

Why RBI’s Private Lending Stands Out in Real Estate Wholesaling

As real estate wholesalers continue to navigate the intricate landscape of fix and flip projects, the choice of the best hard money lender becomes paramount. RBI Private Lending has emerged as a standout partner for wholesalers’ clients, offering a unique blend of qualities that set us apart in the market.

RBI Private Lending, established in 2015, offers competitive private hard money loans, focusing on real estate investments. Our strengths include a team of experienced professionals with diverse backgrounds in finance, real estate, and accounting. We provide financial services tailored to individual needs and promise competitive proposals within 48 hours. our mission emphasizes efficient, personalized solutions for real estate investments, aiming to be leaders in the field while maintaining high service standards. It primarily funds loans in Florida, Texas, New York, Virginia, Georgia, Illinois, Tennessee, Kansas, and Alabama.

For more detailed information, visit our About Us page.


Tailoring Solutions to Your Needs – RBI is your best hard money lender because we understand that each real estate deal is important to small business owners, and is distinct, and flexibility is the key to success. Unlike rigid lending structures, RBI Private Lending adapts to the dynamic nature of the market and the specific requirements of wholesalers to provide the loan amounts needed for success. This flexibility allows for creative financing solutions that align with the nuances of fix and flip projects, empowering wholesalers to seize opportunities that may be overlooked by conventional lenders.

 Speed to Close:

Accelerating Your Success – In the fast-paced world of real estate, time is of the essence. RBI Private Lending is renowned for its ability to expedite the financing process, enabling wholesalers to close deals within a remarkably short timeframe. This speed to close is a significant advantage in a competitive market where delays can mean missed opportunities, in some cases we can close your loan in just a few days. RBI’s commitment to swift and efficient transactions ensures that wholesalers can capitalize on deals quickly and efficiently.


A Foundation of Trust – Transparency is a core value at RBI Private Lending. From the initial client interaction to the closing of a deal, transparency is maintained at every step. Wholesalers and their clients appreciate the honesty and openness in communication. If a deal is not feasible, RBI is upfront about it, saving time for all parties involved. This commitment to transparency builds trust and fosters long-term relationships, a testament to RBI’s dedication to integrity in the lending process.

 Fast Response:

Navigating Market Dynamics – Market dynamics can change rapidly, and timely responses are crucial. RBI Private Lending prides itself on its responsiveness to the evolving needs of wholesalers. Whether it is addressing inquiries, processing documentation, or providing feedback, the team at RBI understands the importance of a quick and efficient response. We know that to be your best hard money lender this agility ensures that wholesalers can navigate the market with confidence, knowing that their financing partner is readily available to support their clients’ endeavors.

 Multilingual Advantage:

Catering to a Diverse Audience – With a significant portion of its team hailing from Latin America, RBI Private Lending offers a unique advantage to wholesalers who prefer communication in Spanish. This multilingual capability not only facilitates smoother interactions but also underscores RBI’s commitment to understanding and meeting the diverse needs of its clientele. The ability to communicate in Spanish adds an extra layer of comfort and accessibility, enhancing the overall client experience.

Genuine Lending, Not Brokerage

In an industry where the line between lenders and brokers can blur, RBI Private Lending stands out as a true lender. Many in the market operate primarily as brokers, acting as intermediaries rather than direct lenders. RBI’s distinction as a private lender means that clients can expect straightforward communication and a more streamlined, efficient lending process. From day one, RBI is in direct contact with clients, ensuring a seamless lending experience.

Highly Skilled and Knowledgeable People: A Pillar of Expertise

RBI Private Lending boasts a team of highly skilled and knowledgeable professionals who understand the intricacies of real estate wholesaling. Their expertise goes beyond traditional lending practices; they are adept at navigating the complexities of fix and flip projects. This wealth of knowledge positions RBI as a trusted partner, providing invaluable insights and guidance to wholesalers and their clients throughout the lending process.

 Private money lenders are indeed wholesalers’ best friends in the real estate market. Their ability to offer fast, flexible, and practical funding solutions is the cornerstone of successful wholesaling ventures, even in challenging market conditions. As you continue to navigate the dynamic landscape of real estate wholesaling, remember that a reliable private lender can be the key to unlocking new opportunities and maximizing your profit potential.

 RBI Private Lending combines flexibility, speed, transparency, multilingual capabilities, and straightforward lending practices to create a lending experience that stands out in the real estate wholesaling industry. As you explore opportunities in the market, consider the advantages that RBI brings to the table, and how a partnership with RBI can elevate your success in the dynamic world of fix and flip projects.

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