Back to homePrivate LendingEducational Overview

Earn like the bank.Secured by real estate.

Private lending lets you participate in real estate as the capital partner rather than the operator. You fund a specific property project; the property itself — not a promise — secures your position, and you earn interest for the use of your money.

01How It Works

You fund the deal. The property secures it.

Instead of buying, renovating and managing a property yourself, a private lender provides short-term capital to an operator who does. The loan is documented, recorded and tied to a real, inspected asset with a defined exit.

01

Interest Income

Your return comes from the interest charged on the loan — typically paid monthly or accrued and paid at payoff, per the note.

02

Defined Term

Private loans are short-term by design, structured around a renovation-and-exit timeline rather than a 30-year horizon.

03

Return of Principal

At the exit — a sale or a refinance into long-term financing — the loan is paid off and your principal is returned.

02Security

What stands behind your capital.

A well-structured private loan is protected by layers of documentation and collateral. These are the safeguards you should expect to see on any deal.

Recorded Lien

A deed of trust or mortgage recorded against the property in your favor — your claim is public record, not a handshake.

Promissory Note

The written contract that spells out the amount, rate, term, payment schedule and remedies if anything goes wrong.

Title & Hazard Insurance

Lender's title insurance protects your lien position; property insurance lists you as loss payee.

Conservative Loan-to-Value

Loans are sized against the property's conservatively estimated value, leaving an equity cushion beneath your position.

Third-Party Closing

Funds move through a title company or closing attorney — never directly to the operator.

Transparent Servicing

Regular renovation and timeline updates so you always know where the project — and your capital — stands.

03The Process

From introduction to payoff.

Property funded through private lending
  1. 01

    Introduction Call

    We learn your goals, timeline, capital source (cash, self-directed IRA, entity) and comfort with risk.

  2. 02

    Opportunity Presentation

    When a project fits, you receive an underwriting package: property details, scope, comparable sales, budget and exit plan.

  3. 03

    Documentation

    A closing attorney or title company prepares the note, deed of trust and lender's title policy for your review.

  4. 04

    Funding at Closing

    You wire funds to the title company's escrow; the lien is recorded in your name at closing.

  5. 05

    Renovation & Updates

    The operator executes the plan while you receive progress reports and scheduled interest payments as documented.

  6. 06

    Payoff

    On sale or refinance, the title company pays off your note — principal plus any accrued interest — and releases the lien.

04Lending vs. Owning

Two ways into the same asset class.

ConsiderationPrivate LenderProperty Owner
RoleCapital partnerOperator & owner
Return sourceInterest on the noteRent, appreciation, tax benefits
Time involvementReview documents, receive paymentsRenovation, tenants, management
PositionSecured lien, ahead of equityEquity, behind lenders
UpsideFixed, defined by the noteUncapped, tied to the market
HorizonShort term, defined exitLong term, owner's discretion
05Risks & Disclosures

Know what you're lending into.

  • A borrower may default or fall behind, requiring collection or foreclosure.
  • Renovations can run over budget or behind schedule, delaying payoff.
  • Property values can decline, reducing the equity cushion beneath your lien.
  • Private loans are illiquid — capital is committed until payoff.
  • Title, insurance, permitting or legal issues can affect the project.
  • Loan documents, lien position and insurance must be independently reviewed.

This page is educational and is not an offer to sell or a solicitation to buy any security or loan. Any private lending relationship with Bossard Investment Group LLC is structured case-by-case, documented separately, and may be limited to accredited or sophisticated investors in compliance with applicable securities laws. Returns are not guaranteed. Consult your legal, tax and financial advisors.

Interested in lending on a Bossard project?