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What you’ll learn in just 17 minutes from today’s episode:
  • Learn why not to proceed with a joint venture at the beginning and go for private money instead 
  • Find out about the pros and cons of different refinancing options 
  • Learn what private lenders are primarily used for, especially to real estate entrepreneurs and investors 



Susan Flanagan has been investing in real estate for well over 25 years, and has done everything from regular buy and holds to student rentals to rent-to-owns, as well as many flips. She started lending her own money for mortgages over 12 years ago, so it was a natural progression to eventually become a Mortgage Broker so that she could connect lenders with borrowers on a regular basis. She is still an active investor but mainly focused on private lending these days. Susan is known as the “go-to person” when it comes to Private Money Lending. 

In this episode, Susan shares what a ‘private money lender’ is and how useful these lenders are to real estate entrepreneurs especially when investors don’t qualify for a bank mortgage. With a private money lender it’s fast and not much of a hassle. 

Topics Covered: 

01:30 – What is private money lending 

02:09 – Is there any difference between private money lenders and hard money lenders 

05:28 – What are the advantages and disadvantages of using different refinancing options 

08:03 – What do they need private money for  

08:33 – How to qualify for a private money loan 

09:33 – When do people usually use private money for first mortgages 

11:35 – Why do people get on JV partners at the onset when they could go through private money lenders 

12:51 – A logical reason as to why go for private money lenders rather than JV right away 

Key Takeaways: 

“Another good example of why real estate investors use private money is and I just did this on my last project. I took a second mortgage on one of my rental properties. I use that money for my down payment and my rental costs. And then I also took out the first mortgage on the purchase. All were private money again. And this is very expensive when you really work it in there. However, when I looked at all my numbers at the end of the day, I’m still making a decent profit once I flip the property.” – Susan Flanagan 

Sometimes it makes sense that people are using private money. First of all, it’s probably a lot less onerous to qualify. Second of all is probably, it’s a lot faster than jumping through all getting it through a big bank. And third of all, it’s when your debt ratio and all that kind of jazz that the banks are looking at don’t line up.” – Susan Flanagan 

There are many other reasons why you need private money. It could be a bridge loan, it could be you’re in the middle of selling, but then you need it. And it’s fast.” – Susan Flanagan 

“The biggest thing you have to qualify for is to show that you can pay it back. 

We want to know the story, the property, the exit strategy. I don’t care about your debt ratios. We don’t say we don’t care about your credit report. But if it tells me a story about your character that we don’t like, then I do care about it.” – Susan Flanagan 

“What I do suggest to a lot of investors though, don’t try to figure this out on your own. I say give me a call. And let’s brainstorm before you purchase it. And sometimes, getting a couple of people’s input prior is better than making the decision going in, no conditions, the works and then finding out this one isn’t a great property to even do this strategy with.”  – Susan Flanagan 

“It’s just another option for people to explore without assuming the only way to do it is to bring in a JV partner who qualifies for the mortgage.” – Susan Flanagan 

Connect with Susan Flanagan: 

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