## What is private credit?

 

Private credit is a category of financial services where non-bank lenders provide loans to businesses. Instead of getting a loan from a bank, businesses can get a loan from a private credit firm that specializes in a specific type of lending suited to that business' needs.

 

Private credit has emerged into a fast growing, trillion dollar industry for the following reasons:

 

- Private credit firms have a low cost of capital, especially those that are funded by insurance companies, and are able to offer competitive terms.

 

- Private credit firms are not subject to banking regulation and can therefore move faster and more creatively in extending credit to borrowers.

 

- Banking sector instability, particularly in a rising interest rate environment where there is risk of depositor flight, has reduced the appetite of banks to extend credit, making private credit firms more reliable and the go-to lender of choice for businesses seeking credit.

 

## How to invest in private credit?

 

There are a multiple ways to invest in private credit:

 

- **Become a limited partner in a private credit firm:** this requires identifying private credit firms with a lending focus or strategy in which you are comfortable. Many private credit firms will have a 

 

## What is private credit investing?

 


 

## What is a private credit fund?

 


 

## How do private credit funds work?

 


 

## Is private credit the same as private equity?

 


 

## Do private loans affect your credit?

Private credit explained. A running list of questions and answers to help real estate investors and fixed income investors understand this fast-growing asset class.

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Private Credit

A private lender data feed is a directory of [private lenders](https://www.offermarket.us/real-estate-glossary/private-lender) and [hard money lenders](https://www.offermarket.us/real-estate-glossary/hard-money). If you are a real estate investor, you can access the best private lenders in your market, easily compare rates and terms, and line up funding for your next deal.

 

## Access our private lender data feed

 
<iframe src="https://docs.google.com/forms/d/e/1FAIpQLScaxH1N15scn_MlyAfbTYDBI_7Z3_hpaoqNuqG3mDGvHE2rbg/viewform?embedded=true" width="100%" height="2104" frameborder="0" marginheight="0" marginwidth="0">Loading…</iframe>
 
 
 

## What kind of loans are available through the private lender data feed?

 

## Rental Loans

 

Rental loans are commonly based on [DSCR](https://www.offermarket.us/real-estate-glossary/dscr-debt-service-coverage-ratio) with rates as low as 4% and origination points as low as 1%. Rental loans are available for the purchase of a rental property, or the refinance of a rental property you already own. These loans require a personal guarantee and a credit score of 680 or higher.

 

The [LTV](https://www.offermarket.us/real-estate-glossary/ltv) can go as high as 80% for purchases and 75% for [cash out refinances](https://www.offermarket.us/real-estate-glossary/cash-out-refinance).

 

### Portfolio Rental Loans

 

Blanket portfolio loans for rental properties are for portfolios of 5+ single family rentals (1 - 4 units). Blanket portfolio loans are non recourse, meaning a personal guarantee is not required though there may be a bad boy provision.

 

If you own multiple rental properties, you can refinance them all at once with a blanket rental portfolio loan. If you want to purchase a portfolio of rental properties, a portfolio rental property loan is something to take a closer look at to save time and money.

 

## Fix and Flip Loans

 

Also known as bridge loans, fix and flip loans typically cover 90% of the purchase price and 100% of the rehab. Interest rates are typically as low as 7.99% and origination points are as low as 2%.

 

### Ground Up Construction Loans

 

A form of bridge loan, ground up construction loans usually cover up to 50% of the land purchase price and 100% of the construction.

A private lender data feed helps real estate investors access capital to fund new projects and refinance rental properties.

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Private Lender Data Feed - OfferMarket

Private Lender Data Feed

Closing costs in a real estate transaction vary by state and county and typically range from 1% - 4% of the purchase price of the property. 

 

In traditional on-market (MLS) transactions, the seller and buyer split closing costs equally -- though if you want to make your offer more competitive you should consider offering to pay all closing costs.

 

In off-market For Sale By Owner (FSBO) and wholesale real estate transactions, it is standard for the buyer to pay all closing costs.

 

Buyers in off-market transactions are more likely to be investors who are more likely to have enough cash to offer a compelling value to the seller by paying all closing costs whereas on-market buyers are typically cash-constrained and trying to reduce the amount of cash they need to bring to the closing table.

In off-market For Sale By Owner (FSBO) and wholesale real estate transactions, it is standard for the buyer to pay all closing costs.

Who pays closing costs in an off-market, wholesale transaction?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

A mortgage loan originator or MLO is a licensed person or company who facilitates the mortgage process from application through closing. MLOs are licensed by state and national authorities, and are given an [NMLS](https://offermarket.us/real-estate-glossary/nmls) number. Mortgage brokers and loan officers are considered MLOs.

A mortgage loan originator or MLO is a licensed person or company who facilitates the mortgage process from application through closing.

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What is Mortgage Loan Originator ("MLO") in real estate?

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* Takes 2 minutes, no credit pull