Private Lending FAQ

A private money lender is a non-institutional financing source that provides short-term loans secured by real estate equity. Unlike banks, private lenders focus primarily on the asset and the deal structure rather than the borrower's personal income history or credit profile. Private lenders move faster, require less documentation, and fund transactions that conventional institutions won't touch. DRX Capital connects borrowers with a network of private lending partners to access this type of capital.

Private money lenders are often called asset-based lenders because underwriting centers on the property's value and the strength of the deal — not the borrower's debt-to-income ratio or tax returns. Banks require strong collateral and strong personal financials. Private lenders require strong collateral, period. This allows private money loans to close significantly faster, with far less documentation, serving borrowers that banks routinely decline.

Investors and borrowers use private money financing when speed matters, when conventional documentation requirements are a barrier, or when the transaction doesn't fit bank criteria. Common scenarios include fix-and-flip projects, bridge acquisitions, ground-up construction, and cash-out refinances on investment properties. All DRX Capital programs are for business-purpose, non-owner occupied investment properties only.

Private money loans offer distinct advantages over traditional bank financing for investment transactions:

• Faster approval and funding — decisions in 24 hours, closing possible within days
• Streamlined documentation — no income verification, no tax returns, no proof of reserves
• Credit flexibility — soft pull only, no credit score minimum, prior BK and foreclosures accepted
• Deal-focused underwriting — lenders evaluate the asset and the deal, not personal finances
• Entity-friendly — loans structured to corporations, LLCs, partnerships, and trusts
• Self-employment is not a barrier
• Speed lets investors compete in time-sensitive acquisition environments

DRX Capital facilitates financing on residential investment properties only. Eligible types include 1–4 unit single-family residences, condominiums (up to 70% LTV), multifamily apartment buildings, and land for ground-up residential construction. All properties must be business-purpose and non-owner occupied. We do not lend on owner-occupied homes, consumer transactions, or commercial retail such as shopping centers.

Yes. Loans can be structured to an individual, a corporation, an LLC, a partnership, a trust, or in certain cases, an estate in probate. International borrowers without a Social Security Number may also qualify, provided they have a valid passport and a U.S.-registered corporation in place.

Because all programs are business-purpose and non-owner occupied, documentation requirements are minimal. Standard requirements include:

• Property photos or active MLS listing
• Executed purchase contract (escrow does not need to be open)
• Title and escrow company information
• Budget breakdown for rehab or construction projects
• Rental income documentation for DSCR loans
• Valid passport and U.S. entity for international borrowers
• HDMA disclosure (required after approval)

No income docs, tax returns, proof of assets, or reserves required. Soft credit pull only. Final closing documents include a promissory Note, First Deed of Trust, and standard escrow and title instruments.

DRX Capital provides loan approvals within 24 hours of a complete deal submission. Clean transactions can close in as few as 24–48 hours depending on title and escrow readiness. Most deals close within two weeks. This speed is one of the defining advantages of private money financing over institutional lending, where timelines routinely extend 30–60 days.

All DRX Capital programs are short-term, interest-only instruments. The standard term is 6 months, with an extension available for up to 1 year at a 0.5 point fee. Loan amounts range from $100,000 to $5,000,000. No principal amortization during the term. These terms are designed to align with fix-and-flip, bridge acquisition, and short-term repositioning strategies.

No. DRX Capital does not impose prepayment penalties on business-purpose, non-owner occupied first trust deed loans. Borrowers may pay off their loan at any time during the term without additional fees. This is particularly relevant for fix-and-flip investors who may sell or refinance before the term expires.

All origination costs and fees are collected at closing — not upfront. The only pre-closing cost a borrower may encounter is an appraisal fee, which applies on a case-by-case basis. Standard fees include an origination fee of up to 3%. Florida and California transactions also include a processing fee ($250), underwriting fee ($750), and document fee ($1,200). Arizona, Utah, and Texas: origination fee only. All fees are disclosed in advance.

DRX Capital facilitates first trust deed loans only. We do not make second trust deed or subordinate lien loans. All loans are secured by a first position deed of trust on the subject property.

There is no minimum credit score requirement. DRX Capital uses a soft credit inquiry only — no impact to your score. Borrowers with prior bankruptcies or foreclosures are eligible, provided those events are no longer active. Private money lending focuses on the deal and the collateral, not the borrower's personal credit history.

No. Because all programs are business-purpose and non-owner occupied, there is no requirement to document personal income, employment history, or tax returns. Self-employed borrowers, investors with complex income structures, and those with unconventional earnings are fully eligible. Underwriting centers on the property, the equity position, and the deal — not the borrower's personal financial profile.

Title insurance protects the lender's interest against competing ownership claims, undisclosed liens, or title defects that could arise after closing. Because private money loans are secured solely by the collateral, the integrity of the title position is critical. Clean title is a requirement to close for all DRX Capital transactions. Title insurance ensures the lender's first deed of trust position is protected for the duration of the loan.

Private money lenders exist because institutional lenders don't fund every deal that makes economic sense. Banks are constrained by regulatory requirements, conservative credit policies, and slow processing timelines. There is a substantial class of transactions — time-sensitive acquisitions, properties in transitional condition, borrowers with non-standard income, deals that need to close in days — where bank lending simply isn't viable. Private money fills that gap with speed, flexibility, and deal-focused underwriting.