Submit a concise executive summary plus an underwriter-ready file set: property address, purchase price, rehab budget, exit plan, and entity and guarantor paperwork. That package gets you a faster, more accurate private money loan submission response. Expect the first term sheet to be indicative, because underwriting can still change final terms once the lender verifies the file.
TL;DR:
- Lenders size advances using loan to value and loan to cost, so credible after repair value, itemized rehab costs, and a sale or refinance exit matter.
- Most investor loans serve business purposes and involve properties the borrower does not occupy, so lenders typically require an entity borrower and personal guarantee.
- Treat an indicative term sheet as nonbinding; appraisal gaps, budget holes, or title problems can change the rate, advance, fees, and closing conditions.
- Private loans may close within weeks or take months; vacant properties with clear title move faster, while permit questions or title defects add delays.
- Check the lender or broker through NMLS Consumer Access before sharing documents, and get fees and conditions in writing because initial quotes are usually nonbinding.
Table of Contents
- What should your first private money loan inquiry include?
- What happens after you hit send?
- What do private lenders evaluate first?
- How do you read an indicative term sheet?
- How long do private money deals take, and what do they cost?
- How do you request a quote that gets a fast answer?
- What habits shorten approval cycles?
- FAQ
- Sources
What should your first private money loan inquiry include?
Lenders price what they can see. A thin inquiry gets a vague answer or a quote that changes later, so give the underwriter everything needed to size the loan on the first pass.
- Property basics: address, photos, current condition, purchase price, and after-repair value (ARV) for flips, or current rent and occupancy for income properties.
- Deal finances: requested loan amount, rehab budget with line items, total project budget, planned exit, and timeline.
- Borrower and entity: LLC formation documents, operating agreement, the personal guarantor's name, and a short summary of net worth or recent financial statements.
- Supporting items: contractor bids, permits, a rent roll, recent comparable sales or an appraisal, and any known title flags.
- Packaging: a concise summary on top, logical file names, and a single PDF or zipped folder.
Pro Tip: Name files so they sort in underwriting order, such as "01_Summary," "02_Budget," "03_Entity_Docs." A lender should never have to guess which attachment holds the rehab scope.
Our loan document checklist expands this list file by file. If your deal is an income property, our tenant screening checklist helps you assemble clean rent roll and occupancy backup.
What happens after you hit send?
Most private lenders follow the same path, and knowing it tells you where delays hide. A typical private lending workflow runs from enquiry through settlement and repayment.
- Enquiry and indicative terms. The lender reviews your summary and issues a term sheet. Practitioners note that indicative term sheets are generally non-binding, so final terms can move.
- Valuation and checks. Expect an appraisal or broker price opinion, a title check, and identity and credit checks on the guarantor.
- Underwriting adjustments. Appraisal gaps, budget holes, and title issues are the usual reasons terms change.
- Formal offer. Once diligence clears, the lender issues a firm offer with fees spelled out.
- Loan documents, closing, and funding. Documents are signed, conditions are cleared, and funds are released.
The common bottleneck is missing information, not lender slowness. Every question a lender must send back adds a cycle, and a clean file removes most of them. Our guide on tie-outs and templates shows how to catch mismatched numbers before the lender does.
What do private lenders evaluate first?
Private lenders look at the asset before the borrower. As one industry guide explains, they prioritize the property and the exit strategy over the borrower's long-term income. That shapes how you should present a deal.
- Loan sizing: lenders measure loan-to-value (LTV) and loan-to-cost (LTC), so a credible ARV and an itemized rehab budget directly raise or lower the advance rate.
- Exit credibility: show whether repayment comes from a sale or a refinance, and back it with comps or a DSCR estimate.
- Property condition and location: these drive how much risk the lender sees in the collateral.
- Borrower structure: most investor loans are business-purpose, non-owner-occupied loans that need an entity borrower and a personal guarantee, so send formation documents with the guarantor's financials.
The most effective submission packages are organized for an underwriter, not a salesperson. Groundfloor's guide says to include address, purchase price, rehab budget, scope of work, and exit strategy at the first inquiry.
If you are still choosing who to approach, our lender shortlist criteria explain how to filter by DSCR, LTV, and loan purpose, and our guide to finding private lenders covers sourcing.
How do you read an indicative term sheet?
An indicative term sheet is a priced estimate, not a commitment. The rate and advance rate on page one are placeholders until the appraisal, budget review, and title work are done, so read it as a list of questions to confirm.
Check these line items and ask follow-ups on each:
- Interest rate and calculation: is interest charged on the full commitment or only on drawn funds?
- Points and fees: ask the lender to itemize origination, processing, and any exit or extension fees.
- Advance rate and term: confirm both against your rehab schedule.
- Covenants and prepay language: look for minimum interest periods or prepayment penalties.
- Third-party costs: get it in writing who pays for the appraisal, legal work, and title.
Prioritize negotiation on the items that move borrower economics and closability: points, advance rate, and prepay terms.
Pro Tip: Ask for fee disclosure in writing before you send confidential files. A lender who resists is telling you something about the closing.
How long do private money deals take, and what do they cost?
Timing runs through an indicative quote, a valuation, a formal offer, and settlement. Private loans often close in weeks to a few months, depending on how much diligence the property needs. A vacant flip with a clear title can move quickly, while a deal with permit questions or a title defect takes longer.
- Points or origination: charged at closing, usually as a percentage of the loan.
- Appraisal and valuation: ordered by the lender, often paid by the borrower.
- Title and legal: covers title search, insurance, and document preparation.
- Extension fees: apply if you need more time than the original term.
Neither duration nor cost is guaranteed, so treat any lender's estimates as ranges. Complete packaging and a verified lender both cut surprise fees and wasted cycles.
Verification matters before diligence starts. NMLS Consumer Access is the central public lookup for mortgage-related license verification in the U.S.
How do you request a quote that gets a fast answer?
Open with a short executive summary in the body of the email, then attach the files. For example: "Requesting a bridge loan on a four-unit property, purchase price and rehab budget attached, exit by refinance, target a prompt close. Entity and guarantor documents attached."
Paste these fields into your email or form:
- Property address and type
- Requested loan amount
- Purchase price and rehab budget
- ARV or current rent
- Borrower entity and guarantor
- Desired closing date
Then follow these steps:
- Write a specific subject line, such as "Bridge Loan Request, Multi-Unit, $X Purchase, Prompt Close."
- Put the summary in the email body, not only in an attachment.
- Attach files in the order the underwriter will read them.
- Check the lender's license on NMLS before sending sensitive documents.
- Track the response so you know when to follow up.
Our loan submission guide maps the files lenders need, and we built BrokersConnect to match deals with verified lenders and track those conversations in one place.
What habits shorten approval cycles?
The biggest gains come from small habits. A concise summary and clearly named attachments cut the back-and-forth that eats days. Matching the deal to the lender's appetite, whether bridge, fix-and-flip, or DSCR, saves you from sending files to lenders who will never fund it. For borrowers who plan to refinance out, a quick read on DSCR versus conventional options helps you describe the exit credibly. Before confidential files leave your hands, verify credentials and insist on written fees. Our list of private lender red flags covers what to check before you send a deposit.
— Theron
FAQ
What do private lenders prioritize when reviewing a deal?
They prioritize the property and the exit plan over the borrower's long-term income. Clear numbers on purchase price, rehab scope, and repayment path make the file easier to price.
Is an initial private lender quote binding?
Usually not. Indicative term sheets are generally non-binding, and terms can change after appraisal and due diligence, so get fees and conditions in writing before you commit.
How do I confirm a lender is licensed?
Search the lender or broker on NMLS Consumer Access before you share documents. Do this early, since it costs minutes and protects your client's file.
Do private money borrowers need an LLC?
Most investor loans are business-purpose and non-owner-occupied, so they typically call for an entity borrower and a personal guarantee. Send formation documents with the guarantor's financials.