Private funding is what OPM is all about! It can be sourced from anyone (or entity) with the funds to invest, such as a relative with a retirement account looking to improve their ROI. In our case, Clevivify's partner network runs multiple large funds earmarked for REI deals.

Private funding differs from a traditional mortgage in that the funds are provided by an individual investor or company rather than a traditional bank. This can result in more flexible loan terms and potentially faster approvals. On the other hand, interest rates can be higher due to the increased risk for the lender and less stringent qualification requirements for borrowers. Essentially, private lenders can tailor loan conditions to specific situations while banks follow stricter guidelines set by regulations.

A private money lender typically gets better ROI by funding private loans than they would by depositing their money in a traditional bank account. These returns are also typically faster than anything they'd receive from the stock market.

The approval procesaditional banks lend based on the person’s details which often doesn’t work in an investor’s favor. Also, individuals are typically limited to 10 total mortgages. Conversely, private money lends based on the details of the deal (though the investor's details can be used to improve the deal.) Typically, private funding has no limits on number of loans at one time, or the limits are more generous. The approval process for private funding is also typically faster and easier than for a traditional mortgage, and the fees and costs can be lower.

Terms and conditions vary depending on the parameters of the deal. Generally, our partners are willing to loan up to 90% of the purchase price and up to 100% of rehab costs, up to 65% ARV.

We’re a risk based lender. Our price goes up as the risk goes up, and our price goes down as our risk goes down. Generally, Clevivify charges 1-3 points in addition to the fees charged by our partners, which are all rolled into the loan. 

We do not offer pre-approval, since the parameters of the deal are part of the approval process. Therefore, the deal must be under contract before we can work with it. However, if the deal is worthwhile, the funding is available.