Shutterstock 

When investors want to purchase and renovate real estate, their financing options can be somewhat limited. Traditional mortgage funders may be put off by properties that require extensive remodeling or structural repairs and business plans that depend on rezoning. 

That reluctance has created a growing national market for private money lenders and a lucrative opportunity for investors in private loan investment funds. My company entered the private lending business after spending two decades doing exactly what we now lend others the money to do: renovate residential and commercial properties in Washington, D.C., Virginia, Maryland and Delaware. Investors in our private loan fund benefit from our experience developing more than 1,400 residential and 200,000 square feet of commercial projects. We entered the lending market because we saw a gap in funding that traditional lenders weren’t filling. It's wise for us to wonder, how big is the potential private-loan fund market and how much of that market share can private loan funds capture? To figure out how big the opportunity is, we can look at the issue through two lenses: How many properties are renovated and resold or what proportion of all homes sold are flipped. 

        Dr. Mauricelm-Lei Millere