Privatelend.com Review

Based on looking at the website, Privatelend.com presents itself as a private real estate lending platform offering various loan types for residential and commercial properties.

However, a strict review of its offerings reveals significant concerns regarding compliance with ethical financial principles, particularly in an Islamic context, due to its explicit promotion of interest-based loans and lack of transparency on crucial regulatory details.

Overall Review Summary:

• Website Focus: Private real estate lending purchase, refinance, fix & flip, ground-up construction, rehab, bridge, rental loans.
• Target Properties: Residential 1-4 units, 5-100 unit multi-family, mixed-use, retail, warehouses, office, industrial, gas stations, senior facilities, mobile home parks.
• Loan Amounts: $75,000 to $50 million+.
• Key Features Advertised: No income check, no credit check, no asset check, no seasoning, foreclosure bail-outs, no pre-payment penalty.
• Closing Time: Advertised 10-day closing.
• Ethical Compliance Islamic Finance: Highly Unrecommended. The core business model is explicitly interest-based “interest only” terms, which is considered Riba usury and is strictly forbidden in Islam. There is no mention of Sharia-compliant alternatives or ethical financing models.
• Transparency & Regulation: Lacks clear information about its licensing, regulatory body, or physical address, which is a major red flag for a financial institution. This absence of critical details makes it difficult to verify its legitimacy and accountability.

While Privatelend.com aims to provide fast and flexible financing, its reliance on interest makes it fundamentally incompatible with Islamic financial principles.

Furthermore, the absence of crucial regulatory and licensing information raises significant questions about its trustworthiness and operational transparency.

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For those seeking ethical and transparent financial solutions, especially in real estate, exploring Sharia-compliant alternatives is essential.

Best Alternatives for Ethical Real Estate Financing:

1. Guidance Residential

   • Key Features: Offers Sharia-compliant home financing Murabaha and Ijara models, no interest charged, co-ownership structures, fixed payments.
   • Average Price: Varies based on property value and financing agreement.
   • Pros: Fully Sharia-compliant, established reputation, transparent processes, suitable for both purchase and refinance.
   • Cons: Application process can be lengthy, may have slightly higher closing costs than conventional loans due to legal structuring.

2. Amanah Finance

   • Key Features: Provides Islamic residential financing using diminishing musharakah and ijara structures, focuses on ethical investment.
   • Average Price: Depends on the financing terms and property.
   • Pros: Dedicated to Islamic finance principles, personalized service, good for long-term real estate investment.
   • Cons: Limited geographical availability in some areas, may require more documentation.

3. Lariba

   • Key Features: Offers Sharia-compliant home financing without interest, uses unique co-ownership and profit-sharing models Murabaha, Musharakah.
   • Average Price: Custom quotes based on individual needs.
   • Pros: Long-standing institution in Islamic finance, very strong ethical stance, educational resources available.
   • Cons: Processes can be complex for first-time applicants, potentially slower approval times.

4. Ijara Community Development ICD

   • Key Features: Focuses on community development through Islamic home financing, provides lease-to-own options Ijara.
   • Average Price: Varies based on property and program.
   • Pros: Community-focused, adheres to Islamic principles, often works with lower-income individuals.
   • Cons: Primarily focused on specific community development initiatives, might not be universally available.

5. Interest-Free Mortgage Lenders General Search

   

   • Key Features: A broad category search for various smaller or emerging Islamic finance institutions.
   • Average Price: Varies greatly.
   • Pros: Can uncover local or specialized Sharia-compliant options, increasing choices.
   • Cons: Requires more due diligence to vet individual lenders, consistency in service can vary.

6. Halal Investment Platforms Real Estate Crowdfunding

   • Key Features: Platforms that facilitate ethical real estate investments compliant with Sharia, often through equity partnerships rather than debt. Examples include Wahed Invest’s real estate offerings or similar.
   • Average Price: Investment amounts vary, often starting from a few thousand dollars.
   • Pros: Allows participation in real estate without conventional debt, promotes shared risk and reward, diversified opportunities.
   • Cons: Investment returns are not guaranteed, liquidity can be lower than traditional investments.

7. Savings & Direct Purchase

   • Key Features: The most fundamentally ethical approach: saving diligently to purchase properties outright or with minimal, zero-interest financing from family/friends. This avoids all forms of Riba.
   • Average Price: Zero interest.
   • Pros: Absolutely Sharia-compliant, no debt burden, complete ownership and control from day one, promotes financial discipline.
   • Cons: Requires significant capital accumulation, can be a long-term goal, not always feasible for everyone.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Privatelend.com Review & First Look: A Deep Dive into Their Offerings

Based on the information presented on their website, Privatelend.com positions itself as a streamlined solution for various real estate lending needs, emphasizing speed and flexibility over traditional banking hurdles.

They highlight their ability to close deals quickly—within 10 days—and their “aggressive features” that bypass common requirements like income, credit, or asset checks.

This approach targets specific segments of the real estate market, particularly those seeking quick access to capital for investment properties or facing urgent financial situations like foreclosure bail-outs.

Understanding Their Business Model

The core of Privatelend.com’s operation appears to be private money lending, where funds are sourced from individuals or investment groups rather than conventional financial institutions.

This often allows for more flexible underwriting criteria but typically comes with higher interest rates and shorter terms to compensate for the increased risk. Dominvsgroup.com Review

• Focus on Asset-Based Lending: Their FAQ explicitly states, “everything is based on the location of the property and its equity,” indicating an asset-based lending model. This means the collateral the property itself is the primary determinant of loan approval, rather than the borrower’s personal financial history.
• Aggressive Features: The advertised “No Income Check, No Credit Check, No Asset Check, No Seasoning, Foreclosure Bail-Outs, No Pre-Payment Penalty” are indeed aggressive in the lending world. While attractive to certain borrowers, they also signal a higher risk profile for the lender, which is typically offset by higher costs to the borrower.
• Target Audience: Their service is likely aimed at real estate investors fix & flip, ground-up construction, rental property owners, individuals needing quick financing for property acquisitions, or those struggling to secure traditional loans due to credit issues or unconventional income.

Initial Impressions of the Website

The website itself is straightforward, with a clear focus on generating quotes.

The key information is presented upfront, including loan types, property categories, and their unique selling propositions.

However, a critical eye reveals a lack of deeper transparency that is typically expected from a financial institution.

• User Experience: The site is easy to navigate, with prominent “Get A Quote” calls to action. The FAQ section addresses common queries directly.
• Missing Information: Crucially, there’s no “About Us” section detailing the company’s history, leadership, or mission beyond what’s implied by their services. This is a significant omission for a financial entity.
• Regulatory Clarity: There’s no mention of specific licenses, regulatory bodies they adhere to, or physical addresses beyond a phone number. This lack of transparency is a serious concern for any financial service provider.

Privatelend.com Features: A Closer Look at Their Private Lending Program

Privatelend.com boasts several features designed to differentiate it from traditional lenders.

These features cater to a specific niche of real estate investors and property owners who prioritize speed and flexibility over stringent qualification criteria. Halfpricegeeks.com Review

Streamlined Application and Approval Process

The promise of a “10-Day Closing” is a significant draw, especially for real estate deals where time is often of the essence.

This speed is likely achieved through their simplified underwriting process.

• Reduced Documentation: “No Income Check,” “No Credit Check,” and “No Asset Check” mean borrowers don’t have to provide extensive personal financial documentation. This significantly cuts down on the time typically spent gathering and verifying paperwork.
• Focus on Property Equity: Approval hinges primarily on the property’s value and equity position. If the Loan-to-Value LTV is 50% or below, they don’t even require an appraisal, further accelerating the process.
• Minimal Score Requirement: Their statement, “We do not look at credit scores unless the transaction is going above our normal 60% loan-to-value,” indicates a relaxed stance on credit history, which is highly unusual for conventional lenders.

Diverse Property Financing Options

Privatelend.com offers financing for a wide array of property types, showcasing their versatility in the private lending space.

• Residential Properties: This includes traditional 1-4 unit residential homes and larger 5-100 unit multi-family complexes, making them appealing to both small-scale and larger-scale residential investors.
• Commercial Properties: Their financing extends to mixed-use properties, retail spaces, warehouses, storage facilities, office spaces, industrial spaces, gas stations, senior facilities, and mobile home parks. This broad scope covers a significant portion of the commercial real estate market.
• Specialized Loan Types:
  • Fix & Flip Loans: Tailored for investors who acquire properties, renovate them, and sell for profit.
  • Ground-Up Construction: For new development projects from scratch.
  • Rehab Loans: Specifically for renovation projects, offering “100% of Rehab Budget.”
  • Bridge Loans: Short-term financing to “bridge” the gap between a current obligation and a future financing event.
  • Rental Loans DSCR Debt Service Coverage Ratio: For investors focused on rental income properties like Airbnb and VRBO, where the loan is qualified based on the property’s income potential rather than the borrower’s personal income.

Borrower-Friendly Terms with a Caveat

While some terms appear borrower-friendly, it’s crucial to understand the underlying nature of private lending.

• No Pre-Payment Penalty: This is a positive feature, allowing borrowers to pay off their loan early without incurring extra fees, which can be beneficial for short-term projects like fix-and-flips.
• Foreclosure Bail-Outs: This service is aimed at individuals facing foreclosure, offering a way to quickly refinance and prevent losing their property. This can be a lifeline but likely comes with high costs.
• Loan Amounts: They handle a broad range, from $75,000 up to $50 million+, accommodating various project sizes.

Important Note on Interest: The site explicitly mentions “12-18 months in interest only with an extension clause after 18 months.” This clearly indicates an interest-based loan model, which is a major concern from an Islamic financial perspective. In Islam, charging or paying interest Riba is prohibited, making this service unsuitable for those adhering to Sharia-compliant financial practices. Ypcitymedia.com Review

Privatelend.com Cons: Unpacking the Red Flags for Ethical & Transparent Financing

While Privatelend.com markets itself with appealing features like speed and flexibility, a deeper dive reveals significant drawbacks, particularly from an ethical and transparency standpoint.

These cons are critical considerations for any potential borrower.

Fundamental Ethical Concerns: Interest-Based Lending Riba

The most prominent and unavoidable drawback of Privatelend.com, especially for individuals seeking ethical financial solutions, is its explicit reliance on interest-based loans.

• Explicit Interest Terms: The website clearly states, “12-18 months in interest only with an extension clause after 18 months.” This confirms that interest Riba is central to their business model.
• Prohibition in Islamic Finance: In Islam, Riba is strictly prohibited. This prohibition is not merely a preference but a fundamental principle designed to promote equitable wealth distribution and discourage exploitative financial practices. Engaging in interest-based transactions, whether as a borrower or lender, is considered impermissible.
• Lack of Sharia-Compliance: There is no indication whatsoever that Privatelend.com offers any Sharia-compliant financing alternatives, such as Murabaha, Musharakah, Ijara, or Istisna, which are designed to avoid interest and promote ethical, asset-backed partnerships.

Severe Lack of Transparency and Regulatory Information

For any financial institution, transparency regarding its operations, licensing, and regulatory compliance is paramount.

Privatelend.com falls significantly short in this critical area. Menyoo.org Review

• No Licensing Information: The website provides no details about the licenses it holds to operate as a lender in various states or at a federal level. This is a major red flag. Legitimate lenders are typically required to display their NMLS Nationwide Mortgage Licensing System ID or state-specific licenses.
• Absence of Regulatory Body Details: There is no mention of which financial regulatory bodies, if any, oversee its operations. Without this information, borrowers have no recourse or assurance of consumer protection.
• No Physical Address or Corporate Information: Beyond a phone number, the website does not provide a physical business address, corporate entity name if different from the website name, or leadership team details. This anonymity is highly unusual and concerning for a financial service provider.
• Unverified Claims: While they claim “10-Day Closing” and “aggressive features,” without regulatory oversight or clear operational details, these claims are difficult to verify independently.

Potential for High Costs and Hidden Fees

While “no pre-payment penalty” is a positive, the nature of private lending often implies higher overall costs compared to conventional loans.

• Higher Interest Rates: To compensate for the “no income/credit/asset check” features and the perceived higher risk, private lenders typically charge significantly higher interest rates than traditional banks or credit unions. While not explicitly stated on the homepage, this is an industry standard for such flexible lending.
• Origination Fees and Points: Private loans often come with substantial origination fees or “points” charged upfront, which can significantly increase the total cost of the loan. These details are not transparently displayed.
• Broker Fees: If Privatelend.com acts as a broker rather than a direct lender which is unclear from the site, there could be additional broker fees involved.

Limited Consumer Protection

The lack of regulatory oversight and transparency directly translates to reduced consumer protection.

• No Clear Complaint Mechanism: Without a stated regulatory body or a clear corporate structure, borrowers might find it challenging to file complaints or seek arbitration if disputes arise.
• Risk of Predatory Practices: While not explicitly stated, the aggressive features and lack of checks could, in unregulated environments, open the door to less scrupulous lending practices. Borrowers with urgent needs might be vulnerable to unfavorable terms.

In summary, while Privatelend.com offers quick access to capital, its inherent reliance on interest and severe lack of transparency make it an unrecommended option, especially for those prioritizing ethical financial conduct and consumer safety.

Privatelend.com Alternatives: Exploring Ethical and Transparent Real Estate Financing

Given the significant concerns surrounding Privatelend.com’s interest-based model and lack of transparency, it’s crucial to explore alternatives that prioritize ethical principles and clear operational standards.

For individuals and businesses adhering to Islamic financial guidelines, the alternatives focus on avoiding Riba interest and promoting equitable, asset-backed transactions. Tapashuset.com Review

Even for those not strictly adhering to Islamic finance, the emphasis on transparency and ethical dealing remains paramount.

Understanding Ethical Financing Principles

Ethical financing, particularly within an Islamic framework, is built upon several core tenets:

• Prohibition of Riba Interest: All forms of interest, whether charged or paid, are forbidden. This necessitates alternative financing structures based on genuine trade, leasing, or profit/loss sharing.
• Avoidance of Gharar Excessive Uncertainty/Speculation: Transactions should be clear, transparent, and free from undue risk or ambiguity.
• Avoidance of Maysir Gambling: Financial transactions should not involve elements of chance or pure speculation.
• Asset-Backed Transactions: Financing should be linked to tangible assets or legitimate trade activities, promoting real economic growth rather than purely financial leverage.
• Profit and Loss Sharing: Where applicable, financing should involve shared risk and reward between parties.

Types of Ethical Real Estate Financing Alternatives

Instead of conventional interest-based loans, ethical alternatives rely on different contracts:

1. Murabaha Cost-Plus Financing: The financial institution purchases the asset e.g., a property and then sells it to the client at an agreed-upon higher price, payable in installments. This is a sale transaction, not a loan, and no interest is charged. The profit margin is fixed at the outset.

   • Application: Commonly used for home purchases.
   • Example: A bank buys a house for $300,000 and sells it to the customer for $350,000 payable over 15 years in fixed installments.

2. Ijara Leasing: The financial institution buys the asset and leases it to the client for a fixed period. At the end of the lease, ownership may transfer to the client, either through a separate sale or as part of the initial agreement Ijara wa Iqtina – Lease to Own. Lolindirlink.com Review

   • Application: Suitable for both residential and commercial property financing, including rental properties.
   • Example: A bank leases a commercial building to a business. The business pays regular rent, and at the end of the lease term, the building ownership transfers to the business for a nominal fee.

3. Musharakah Partnership: A joint venture where the financial institution and the client jointly own an asset, with the institution’s share gradually diminishing as the client buys out its portion over time Diminishing Musharakah.

   • Application: Flexible for various real estate projects, including large-scale developments.
   • Example: A bank and a client jointly purchase a property. The client occupies the property and pays rent on the bank’s share, while also making payments to gradually buy out the bank’s equity.

4. Istisna Manufacturing/Construction Finance: A contract where a financial institution agrees to finance the manufacturing or construction of an asset based on specific designs, and then sells it to the client upon completion.

   • Application: Ideal for ground-up construction or significant renovation projects.
   • Example: A bank finances the construction of a new multi-family unit project for a developer, then sells it to the developer upon completion based on agreed terms.

Direct Alternatives Sharia-Compliant Lenders/Financiers

For those looking for real estate financing that explicitly adheres to ethical and Islamic principles, here are some prominent and trusted options in the United States and globally:

• Guidance Residential: One of the most established providers of Sharia-compliant home financing in the U.S. They offer both Murabaha and Ijara-based solutions. Their transparency regarding their Sharia Supervisory Board and detailed processes is a major plus.

  • Key Services: Home purchase, refinance, pre-approval.
  • Website: Guidance Residential

• Amanah Finance: Another reputable institution offering Islamic home financing. They focus on providing ethical alternatives to conventional mortgages with a strong emphasis on community values. Phonty.com Review

  • Key Services: Residential financing, ethical investment solutions.
  • Website: Amanah Finance

• Lariba: Pioneering Islamic finance institution in the U.S. since the 1980s. They provide interest-free home financing and other ethical financial services.

  • Key Services: Home finance, ethical investments, business finance.
  • Website: Lariba
• Ijara Community Development ICD: Focuses on providing affordable and ethical home financing, often catering to underserved communities through their Ijara-based programs.

  • Key Services: Home ownership programs, community development.
  • Website: Ijara Community Development ICD

Non-Lending Alternatives for Real Estate Investment

For those who want to engage in real estate without any debt-based financing, even ethical ones, direct equity participation or crowdfunding offers a pathway:

• Halal Real Estate Crowdfunding Platforms: These platforms allow individuals to invest in real estate projects by purchasing equity shares, thus sharing in the profit and loss. This avoids any form of debt or interest.

  • Examples: While specific platforms constantly emerge and evolve, searching for “halal real estate crowdfunding” can yield relevant options. Always ensure the platform itself is audited for Sharia compliance.
  • Key Benefit: Low entry barrier for real estate investment, direct equity ownership.

• Self-Financing/Savings: The most straightforward and undeniably ethical method is to save up and purchase properties outright. This eliminates any reliance on external financing and associated financial complexities.

  Jillianstewart.com Review

  • Key Benefit: Complete control, no debt, absolute Sharia compliance.
  • Tools: Personal finance and budgeting tools/books like those found via “personal finance budgeting books” can aid in this approach.

When considering any alternative, always verify their Sharia compliance through an independent Sharia Supervisory Board SSB and ensure they are transparent about their licensing and regulatory status.

Prioritizing ethical financial conduct leads to sustainable and blessings-filled ventures.

How to Cancel Privatelend.com Services Hypothetical & General Advice

Since Privatelend.com deals with real estate loans rather than subscriptions or free trials in the traditional sense, the concept of “cancellation” would primarily apply to the loan application process or the loan itself.

If you’ve applied for a loan with Privatelend.com and wish to withdraw your application or if you’ve already secured a loan and want to understand early payoff options, the process would generally follow these steps: Titodelmolo.com Review

Cancelling a Loan Application

If you have submitted an inquiry or a full application but have not yet signed final loan documents, withdrawing your application is typically straightforward.

1. Contact Immediately: The fastest way to cancel an application is to contact Privatelend.com directly.
   • Phone: Call their advertised number: 800-532-2430.
   • Email/Form: Check their website for a contact form or a general inquiry email address. State clearly that you wish to withdraw your application.
2. State Your Intent Clearly: Be explicit that you are withdrawing your loan application and no longer wish to proceed.
3. Confirm Withdrawal: Ask for a written confirmation email is usually sufficient that your application has been canceled and that no further action will be taken or fees incurred.
4. No Financial Obligation Generally: Prior to signing binding loan documents, you are generally not financially obligated to a lender for simply applying. However, some lenders might charge an application fee or appraisal fee upfront, which may or may not be refundable depending on their specific terms. Privatelend.com’s site does not specify any application fees, but it’s crucial to confirm.

Early Payoff of an Existing Loan

If you have already secured a loan with Privatelend.com and wish to pay it off early, the process would involve fulfilling the terms of your loan agreement.

1. Review Your Loan Agreement: Carefully read the loan documents you signed. This agreement will detail:
   • The total outstanding balance.
   • Any specific instructions for early payoff.
   • Whether there are any remaining fees though their homepage advertises “No Pre-Payment Penalty,” always verify this in your specific contract.
2. Contact Their Servicing Department: Reach out to Privatelend.com’s loan servicing department if they have one distinct from their originations team to request a payoff quote.
   • Request Payoff Statement: Ask for a full payoff statement that includes the exact amount due on a specific date, including any accrued interest up to that point. This statement should also confirm no pre-payment penalties.
3. Arrange Payment: Once you have the accurate payoff amount, arrange for the funds to be transferred as per their instructions e.g., wire transfer, certified check.
4. Confirm Lien Release: After the loan is paid in full, ensure that Privatelend.com or their servicing agent records a release of lien on your property with the appropriate county recorder’s office. This is crucial to clear the title of your property. Keep copies of all payment confirmations and the lien release document.

Important Consideration for Ethical Financing: For those who have taken out an interest-based loan with Privatelend.com and are seeking to rectify this from an Islamic perspective, the guidance is generally to pay off the principal amount as quickly as possible to minimize the accumulation of Riba. Any remaining interest portion beyond the principal should ideally not be paid if it can be avoided, though in contractual obligations, this might not be possible without legal recourse. Consulting a knowledgeable Islamic scholar for specific guidance on handling existing interest-based contracts is highly recommended.

Privatelend.com Pricing: Understanding the Cost Structure and its Ethical Implications

Based on the information available on the Privatelend.com homepage, specific interest rates, fees, and overall pricing structures are not explicitly detailed.

This lack of transparency regarding costs is a significant drawback for potential borrowers, making it difficult to assess the true financial commitment upfront. Glycerinrefine.com Review

However, given their business model as a private lender, we can infer common industry practices and highlight the ethical implications of their stated “interest-only” terms.

What is Stated vs. What is Implied

• Stated Term: The most direct mention of cost structure is “12-18 months in interest only with an extension clause after 18 months.”
  • “Interest Only”: This means that for the initial period 12-18 months, borrowers only pay the interest accrued on the principal loan amount. The principal balance remains unchanged during this phase. This type of payment structure is common in short-term real estate investments, as it keeps monthly payments low and maximizes cash flow for renovations or quick resale.
  • “Extension Clause after 18 months”: This suggests that if the loan is not paid off within the initial term, it can be extended, likely for an additional fee and potentially new terms.

Inferred Pricing Components of Private Lending

While Privatelend.com does not publish its rates, private money lenders typically employ a combination of costs that are usually higher than conventional loans due to the higher risk tolerance and speed they offer.

1. Interest Rate:

   • Higher than Traditional: Private lenders almost always charge significantly higher interest rates than banks or credit unions. While conventional mortgages might range from 3-8% depending on market conditions and borrower credit, private loan rates can often start at 8-12% and go much higher, depending on the loan-to-value LTV, property type, and borrower profile.
   • Ethical Concern: As discussed, the very presence of an “interest rate” makes this service problematic from an Islamic finance perspective due to the prohibition of Riba.

2. Origination Fees Points:

   • Common in Private Lending: It’s standard practice for private lenders to charge “points” or origination fees, which are upfront fees calculated as a percentage of the loan amount. One “point” equals 1% of the loan amount. For example, a 2-point fee on a $500,000 loan would be $10,000 paid at closing.
   • Typical Range: These fees can range from 2-10 points or even higher, depending on the risk of the loan and the lender. These fees are usually deducted from the loan proceeds.
   • Lack of Transparency: Privatelend.com’s homepage does not disclose any information about these crucial upfront costs.

3. Underwriting Fees: Criticalfutureglobal.com Review

   • Some lenders charge separate fees for processing and underwriting the loan.

4. Appraisal/Valuation Fees:

   • The FAQ states, “If the LTV is 50% or below we do not require it, if it is above 50% than a drive-by appraisal is required.” If an appraisal is required, the cost is typically borne by the borrower.

5. Legal and Closing Costs:

   • These are standard costs associated with any real estate transaction, including title insurance, escrow fees, recording fees, and attorney fees where applicable. While not directly a fee charged by Privatelend.com, they are part of the overall cost of obtaining the loan.

The Ethical Imperative in Pricing

From an Islamic perspective, the pricing model of Privatelend.com is fundamentally problematic due to its reliance on interest.

• Riba is Non-Negotiable: The prohibition of Riba interest in Islam means that any loan structure that charges interest is impermissible, regardless of how low the rate is or how beneficial the loan terms might appear.
• Focus on Ethical Alternatives: Ethical financial transactions in Islam are based on profit-and-loss sharing, genuine trade, or leasing agreements, where the “cost” or “profit” is derived from legitimate business activity and shared risk, not from the time value of money itself.
• Lack of Justification for “Interest”: In an ethical framework, wealth is generated through productive means, not merely by lending money at a premium. The concept of “interest” as compensation for delayed payment is seen as unjust.

In conclusion, while Privatelend.com offers attractive speed and flexibility, its opaque pricing and explicit interest-based model render it unrecommended for those prioritizing ethical financial conduct and transparency.

Borrowers should always demand a full breakdown of all fees and interest rates before committing to any private loan and, ideally, seek Sharia-compliant alternatives. Smarteranalyst.com Review

FAQ

What is Privatelend.com?

Privatelend.com is a private real estate lending platform that offers various types of loans for residential and commercial properties, including purchase, refinance, fix & flip, ground-up construction, rehab, bridge, and rental loans.

They emphasize quick closings and flexible underwriting.

Is Privatelend.com a legitimate company?

Based on the website, Privatelend.com promotes specific loan services.

However, it lacks crucial transparency regarding its licensing, regulatory oversight, and physical address, which are standard for legitimate financial institutions.

This absence of verifiable information raises significant concerns about its full legitimacy and accountability. Fabrackfashion.com Review

Does Privatelend.com offer Sharia-compliant financing?

No, based on the information on their homepage, Privatelend.com explicitly operates on an interest-based model, stating terms like “12-18 months in interest only.” This model is contrary to Sharia Islamic law, which prohibits Riba interest.

What types of properties does Privatelend.com finance?

Privatelend.com finances a wide range of properties, including 1-4 residential units, 5-100 unit multi-family units, mixed-use properties, retail spaces, warehouses, storage facilities, office spaces, industrial spaces, gas stations, senior facilities, and mobile home parks.

What are the typical loan amounts offered by Privatelend.com?

Privatelend.com indicates that their typical minimum loan amount is $100,000, though they have gone as low as $75,000. The highest loan amount they can provide normally caps at $25 million, but they have seen amounts exceeding $50 million.

Does Privatelend.com require an income check?

No, Privatelend.com explicitly states “No Income Check” as one of its aggressive features.

Their lending decisions are primarily based on the property’s location and equity. Locksmith-westminster-co.com Review

Is a credit check required for a loan from Privatelend.com?

No, Privatelend.com states they do not look at credit scores unless the transaction goes above their normal 60% Loan-to-Value LTV.

What is the maximum LTV Loan-to-Value for a Privatelend.com loan?

The website states that LTVs Loan-to-Value range from 50% to 80% for their loans.

Is an appraisal needed for a Privatelend.com transaction?

According to their FAQ, an appraisal is not required if the LTV is 50% or below.

However, if the LTV is above 50%, a drive-by appraisal is required.

What are the typical terms for a private loan from Privatelend.com?

The typical terms mentioned are “12-18 months in interest only with an extension clause after 18 months.” This means borrowers primarily pay interest during the initial period. Bomaitalia.com Review

Does Privatelend.com charge a pre-payment penalty?

No, Privatelend.com advertises “No Pre-Payment Penalty,” meaning borrowers can pay off their loan early without incurring additional fees for doing so.

How quickly can Privatelend.com close a loan?

Privatelend.com advertises a “10-Day Closing” period, emphasizing their efficiency and speed in processing loans.

Does Privatelend.com offer loans for “Fix & Flip” projects?

Yes, Privatelend.com explicitly lists “Fix & Flip Loans” as one of their specialized financing options for real estate investors.

Are there any upfront fees mentioned on the Privatelend.com homepage?

The Privatelend.com homepage does not explicitly detail any upfront fees such as origination fees or points.

This lack of transparency on all costs is a concern.

What are the risks of using a private lender like Privatelend.com?

Risks include potentially higher interest rates and fees even if not explicitly stated, less consumer protection due to unclear regulatory information, and ethical concerns regarding interest-based financing.

What are ethical alternatives to Privatelend.com for real estate financing?

Ethical alternatives for real estate financing include Sharia-compliant institutions that offer models like Murabaha cost-plus sale, Ijara leasing, or Diminishing Musharakah co-ownership with gradual buy-out, all of which avoid interest.

Examples include Guidance Residential, Amanah Finance, and Lariba.

How can I apply for a loan with Privatelend.com?

The website prominently features “Get A Quote” buttons, indicating an online inquiry or application process.

They also list a phone number 800-532-2430 for direct contact.

Is Privatelend.com suitable for long-term rental properties?

Yes, Privatelend.com mentions offering “Rental Loans DSCR” Debt Service Coverage Ratio which are designed for income-generating properties like Airbnb and VRBO, suggesting suitability for long-term rental investments.

What should I do if I am looking for a foreclosure bail-out loan ethically?

If you are seeking a foreclosure bail-out, you should look for Sharia-compliant financial institutions that offer ethical refinancing options or explore direct, interest-free financing from family or community funds.

Avoiding interest remains paramount in such situations.

How do I contact Privatelend.com?

You can contact Privatelend.com via the phone number 800-532-2430, or by filling out their “Fast Quote” form on their website.