What Is Private Lending?
Private lending — also called hard money lending or private money lending — is when an individual lends capital directly to a real estate investor, secured by a lien recorded against the property. Rather than borrowing from a bank, Capitol Cash Offer works with private lenders who want their money actively earning returns instead of sitting in a savings account or money market fund.
As a private lender, you become the bank. Your loan is secured by a first deed of trust on the property, meaning if the borrower ever fails to perform, you have legal recourse to the real estate itself, the same protection a bank has on a mortgage. Capitol Cash Offer has completed over 100 transactions in the DC Metro market, and every private lender who has worked with us has been paid back in full, on time, with interest.
Why Work With Capitol Cash Offer?
The DC Metro real estate market is one of the most stable and high-demand markets in the country. Virginia, Maryland, and Washington DC sit on a foundation of federal government employment, defense contracting, and institutional demand that insulates the market from the boom-and-bust cycles that affect other parts of the country. That stability protects your investment.
Gavin Kersellius, the founder of Capitol Cash Offer, manages every transaction personally. There is no middle layer, no institutional hierarchy. When you invest with Capitol Cash Offer, you speak directly with the person doing the deals, and your capital is deployed with full transparency at every step.
Real Property Security
Every loan is secured by a first deed of trust recorded against the property. Your capital is backed by a tangible, insured asset in one of the strongest real estate markets in the country.
Predictable Returns
Interest payments are structured upfront, so you know exactly what you earn before you commit. No stock market volatility, no surprises, no hidden fees.
Short Loan Cycles
Loans typically run 6 to 12 months, tied to the acquisition and renovation cycle of each deal. Your capital is deployed, earns, and returns to you quickly, ready to redeploy.
Direct Relationship
You work directly with Gavin, not a fund manager or intermediary. Every deal is discussed openly, and you have full visibility into the property, the plan, and the exit strategy.
Proper Documentation
Every loan is documented with a promissory note and deed of trust prepared by a licensed title company. Your lien is recorded in the public land records, giving you full legal protection.
Local Market Expertise
Capitol Cash Offer focuses exclusively on the DC Metro market, where Gavin has deep knowledge of neighborhood values, renovation costs, and buyer demand across Virginia, Maryland, and DC.
How the Process Works
Becoming a private lender with Capitol Cash Offer is straightforward. Here is the process from introduction to repayment.
Introduction Call
We discuss your goals, available capital, and preferred terms. There is no pressure and no commitment required at this stage.
Deal Presented
When a suitable property is under contract, Gavin presents the deal specifics: property address, purchase price, renovation budget, exit strategy, and proposed loan terms.
Terms Agreed
You review and agree to the loan terms, including the interest rate, loan amount, and repayment schedule. A promissory note and deed of trust are drafted by the title company.
Funds Wired
You wire funds to the title company at closing. Your lien is recorded against the property in the county land records the same day the deed transfers.
Earn Interest
Interest accrues on your loan balance for the duration of the project, paid according to your agreed schedule, monthly or at payoff.
Full Repayment
When the property sells or refinances, your principal and all accrued interest are wired back to you. The deed of trust is released and your lien is removed from the property record.
Private Lending vs. Other Investments
Many investors are surprised to learn how competitive private real estate lending is compared to traditional alternatives, especially on a risk-adjusted basis.
| Factor | Private Lending | Stock Market | Savings / CD |
|---|---|---|---|
| Typical Return | 8–12% annually | 7–10% (historical avg) | 4–5% (current) |
| Collateral | Real property, first lien | None | None / FDIC cap |
| Volatility | Fixed, predictable | High | Low |
| Liquidity | Illiquid for loan term | High liquidity | Penalty for early exit |
| Loan Term | 6–12 months | Open-ended | 6–60 months |
| Transparency | Full deal visibility | Limited | Simple |
| Who Controls | You + experienced operator | Market forces | The bank |
Who Is a Good Fit as a Private Lender?
Private lending is not for everyone, but for the right investor it is one of the most straightforward ways to earn strong, secured returns. You may be a good fit if you:
- Have capital sitting in a savings account, money market, or low-yield investment earning less than you would like
- Want secured, predictable returns without the volatility of the stock market
- Are comfortable with capital being committed for 6 to 12 months at a time
- Value direct relationships and full transparency over anonymized fund structures
- Are interested in real estate but do not want the time commitment of owning or managing property
- Have access to self-directed IRA or 401(k) funds that can be deployed into real estate lending
The minimum loan amount to participate with Capitol Cash Offer is typically $50,000, though this varies by deal. There is no maximum, and larger loans are welcome on the right transactions.
Using a Self-Directed IRA or 401(k)
One of the most powerful but underutilized tools for private lending is the self-directed IRA (SDIRA) or solo 401(k). These retirement accounts allow you to invest in alternative assets, including real estate loans, with the same tax advantages as a standard IRA or 401(k).
If your retirement savings are sitting in index funds earning modest returns, you may be able to direct a portion of those funds into a private real estate loan and earn significantly more, either tax-deferred or tax-free in a Roth account. A self-directed IRA custodian handles the administrative requirements, and your SDIRA becomes the lender of record on the deed of trust.
Capitol Cash Offer has worked with lenders using self-directed IRAs and can refer you to reputable SDIRA custodians if you are interested in exploring this option. We recommend consulting with a qualified financial advisor or tax professional before making any changes to your retirement accounts.