Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Companies that Advertise Private Money Lending

9 Sept 2026 · 1 min

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In this brief conversational excerpt, Christian Osgood explains how to assess whether a real‑estate deal should be financed with private‑money debt or with equity. He emphasizes that the key question is whether the deal’s cash‑flow can support the higher interest rates typical of private‑money loans. Using a simple example, he shows that a deal generating 7% cash‑flow would be unattractive if private‑money rates are 13%, suggesting equity would be a better choice. The discussion frames private‑money lending as a debt option that must be justified by the deal’s cash‑flow performance.

Chapters

What about these companies that advertise private money lending?
If your deal has a lot of cash flow and private money sounds— so now we're on the debt side of deal debt equity. So we're back from the equity down, back down to debt. If we're looking at borrowing, does the deal want you to borrow at more expensive rates and does it support it? If yes, that could be a good debt product. And now you've solved for X. If no, then we want to look at equity. What does the deal want to do? If it cash flows 7% and private money rates are at 13% interest, probably not the right debt product for your deal.