Do Private Money Lenders Work with Newbies & DSCR Loans?

[Mona B.]

Hi BP!

Over time, I’ve found investors on social media discuss how they began their investing journey using private money. However, I’m seeking to learn from other experienced investors… are private money lenders willing to work with newbies on their first deal – especially when the newbie prefers not to or isn’t able to source from their immediate circle of family and acquaintances?

Do they prefer a ‘personal guarantee’ along with insurance and the promissory note? Are private lenders okay with being in 2nd position, and do they want to be able to place a lien on the property until the loan is satisfied?

Also, as I'm analyzing both multifamily and commercial leads and learning about DSCR loans, can private money fund the remaining 20% – 25% needed to close and/or the reserves needed to qualify for a DSCR?