Many California investors begin by asking ‘what is a private lender?’, since these firms operate outside traditional banking models yet play a central role in real estate finance. In California, private lenders provide capital for real estate investments without requiring borrowers to meet traditional lending criteria imposed by bank loans or a credit union.

In California real estate, investors targeting distressed or undervalued properties often require financing that supports both purchase and renovation. Rehab loans are structured to meet this need, delivering one source of capital that covers acquisition and construction.