Execution path
Private Capital & Partnerships
When traditional lending doesn't fit, private capital often does. Flexible, relationship-driven, and able to move quickly — but it requires trust and clear terms.
What It Is
Private capital refers to money from individual investors, family offices, or high-net-worth individuals rather than banks or institutional lenders. The terms are negotiated directly between parties — not governed by bank underwriting guidelines. It's the most flexible form of capital available to investors, and often the only option for deals that don't fit conventional boxes.
Common Structures
Private Lending (Debt)
An investor loans you money at a fixed interest rate, secured by the property. They earn interest; you retain ownership. Structured like a mortgage, just from a private party instead of a bank.
Negotiated rate, fixed term, secured by deed of trust
Equity Partnership
Both parties contribute — you bring the deal and execution; the partner brings capital. Profits are split based on agreed percentages. Common for larger projects or when an investor wants more than a fixed return.
Profit split 50/50 or negotiated, typically via LLC
Joint Venture (JV)
Similar to equity partnership but typically deal-specific. One party finds the deal, the other funds it. Terms are deal-by-deal rather than long-term.
Per-deal structure, defined roles and profit split
Preferred Equity
Investor receives a preferred return (e.g., 8% annually) before any profits are split. After the preferred return is paid, remaining profits split per agreement. Common in larger real estate deals.
Fixed preferred return + profit participation after threshold
What Private Capital Investors Want
Private investors have different priorities than banks. Here's what actually matters to them:
Trust and track record
Most private money comes from your network. They're investing in you as much as the deal.
Clear deal structure
They want to understand exactly how they get paid back — and what happens if things go wrong.
Asset security
Private lenders want to be secured against the property. A first position deed of trust gives them protection.
Realistic returns
Too-good-to-be-true projections raise red flags. Conservative, defensible numbers build confidence.
Legal and Documentation
Private capital deals require proper legal documentation. Handshake deals between friends end friendships. Every private capital arrangement should have:
- —Promissory note (for debt structures)
- —Deed of trust or mortgage (for secured lending)
- —Operating agreement (for equity/LLC structures)
- —Clear terms: rate, term, repayment, default remedies
- —Legal review by a real estate attorney
Private capital is relationship-driven. If you have a deal that makes sense and need help thinking through how to structure the capital, I can help you build a pitch that's realistic and compelling.
I've structured both private lending and equity deals. Let's talk through your situation.