If you haven’t used a private lender during your real estate investing career, it’s probably because you haven’t been in the business long enough. Private lending is a critical cog in the real estate industry that allows properties previously ineligible for conventional financing get to that stage using privatehow to get a private loan approved funds.

Private lenders can be individuals, accredited investors or a collection of like-minded investors who see the value of private lending. When you get to the point where you finally determine you need private money, here are three tips that will help get your first private loan approval.

The Exit. The most important piece is how you will end the transaction. Better put, how the private lender will get the loan paid off. Simply put, if you’re buying a single family home in an established neighborhood that needs a new foundation and going into foreclosure, put down your plan on paper, supported by recent real data from recent sales it the area.

The Math. The big part of the exit strategy is making sure the numbers work out. How did you arrive at your offer? How did you get to the amount needed to make repairs. Have you reviewed a preliminary title report showing all outstanding liens that must be removed? In a project where profit is the result of sales price minus all costs, having solid numbers is crucial. Don’t just enter an amount for “Repairs Needed” but itemize each and every cost and include an amount for change orders of at least 10 percent of the original estimate. A detailed accounting will tell the private lender you’ve done your homework.

The Future. Are you a one-off? Is this your only project? Will there be more? An experienced real estate investor will gain more favor than a newbie but with regard to private lending, a well prepared plan backed up by solid data will convince a private lender to place the loan, even if you haven’t exactly flipped 10 deals last month.