Private Hard Money Lending 101, with Kenneth Igwe

Our guest today is Kenneth Igwe, a private money lender, and multifamily real estate investor. In this episode, he shares his tips on how to qualify for hard money lending and how to get the best financing deals and interest rates as an investor. If you want to know the pros and cons of bank loans, hard money lending, and borrowing money from your family, then this episode is for you! 

“I’m a big believer that math is a language that a lot of people are just not fluent in, and do not want to become fluent in.”


Kenneth studied mathematics in college and was always passionate about numbers. He looks at it as a language that you can learn and is crucial for real estate investing. 

“As our industry literally transforms, I just want people to start to have conversations about private money as opposed to hard money, as well.”


According to Kenneth, capital can come from 3 sources:

  1. Raised money from family and friends
  2. Raised money through an institutional route
  3. Bank loans

Kenneth talked in detail about the pros and cons of these 3 different capital raising routes.

He doesn’t like to use the term hard money lending for his industry as it has a negative undertone in many cases. He prefers institutional private money lending.

Kenneth explained the process of finding the money for your deals through private money lending:

  • First, figure out what type of investor you want to be
  • Once you get to the lender, they want to know if you are reliable so they look at 4 things:
    • The project
    • You and your team’s experience
    • Your credit score
    • Your liquidity

“A private lender’s job is not to see if you have a good deal or not. Our job is to determine if the deal is financeable.”


Kenneth’s advise on the first steps needed to understand commercial lending better:

  • Read a number of commercial real estate investing books
  • Join a Real Estate Investment Association with a commercial division
  • Actively start conversations with people in your industry
  • Start analyzing deals even if you don’t want to buy them

When it comes to private money lending, in order for a deal to be attractive for the lender, it has to be financeable and profitable with good cashflow. 

Kenneth is always looking for experience when he is working with residential or commercial projects, but if you don’t have that, an experienced team can go a long way.

Mentioned in the show:

  1. Frank Gallinelli – What Every Real Estate Investor Needs to Know About Cash Flow
  2. His email:  

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Special thanks to Kenneth Igwe for taking the time to share so many great insights with us

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Until the next time, We truly appreciate you listening.

Thanks to Shine Insurance for sponsoring this episode. You can reach out to sign up for their REI Insurance program here:

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