Private money lenders typically care more about the deal than they care about your credit score. They want to know you have a solid track record of good business standing before handing you a six-figure check. They want to be protected by having a first deed of trust (mortgage) on the property, so their money is secured by a hard asset.
Where does this leave the new investor with little to no track record? Well, sometimes you have to start with some hard money loans before you can graduate to a better deal on your lending. But that isn’t always the case, especially when working with people who know you and believe in you.
Unlike a loan officer at some big national bank, private money lenders rely much more on personal relationships. They are literally hitching their money to your success. As a relational business, it may take a few “dates” before they are ready to get married to your long-term, to see if you are compatible, how you work, and if you actually put the dishes away like you promised.