Where are the private equity lenders?

[Jennifer Ryan]

Where are all the private  equity lenders that Josh and Brandon always talk about?

[Andrew S.]

I can see that you might be displeased with Jay's response, but that doesn't mean he is wrong.  Private lenders are typically found amongst your family or circle of friends.  Sometimes, you can find them by networking and establishing a personal connection with someone.  The key point is that private lenders might consider lending you money because they already know and trust you.  This will allow them to take a chance on you where a purely commercial lender might not.  For example, you say that your credit score is insufficient for a bank or hard money lender.  Well, your brother, or your uncle, or your bestie, may not care that much about your credit score.  They know that you will pay back the loan because they trust your character.  Well, a bank or commercial lender does not operate on that basis - they deal with facts, credit scores, risk analysis, etc.  A possible exception might be a hard money lender who may take a chance on you if you present a solid deal, but they will want to be compensated for this risk by charging 5 points upfront and 15% interest.

So, all of this means that coming to a public board like BP and asking "where are all the private lenders" is an oxymoron.  By definition a private lender is someone you know already, so you won't find any here.  That's what Jay was pointing out.