Sell your funded loans.Lend the capital again.
Sell the whole loans you’ve already funded through Lender Capital to free up your capital and lend it again. You set an asking price, the loan goes only to capital partners whose criteria it fits, and a capital partner buys the whole loan. It’s the second way lenders get capital here; the first is direct capital placement before closing.
Key takeaways
- Sell loans you already funded through Lender Capital: a capital partner buys the whole loan, and you get your capital back to lend again.
- In the lender portal you choose “Sell a loan I already funded” and submit the balance, funding date, payment history, your asking price and whether servicing is released or retained, with the file.
- The loan goes only to capital partners whose criteria it fits. They review the full file, a partner commits, and the sale settles through an escrow agent.
- The sale fee is 0.75% of the purchased balance (0.50% for Preferred lenders), with a $2,500 minimum, paid only if the sale closes. One fee, one payer: you by default, or the buyer if you list the loan buyer-paid.
- Lender-originated loans only, sold whole: first-lien, business-purpose bridge, fix and flip, construction and DSCR loans, performing or not. A sub-performing or non-performing loan is sold as is, with its default disclosed. No participations.
Loan sales for private lenders: how do I sell a hard money loan I already funded?
Apply to Lender Capital as a lender. Once approved, choose “Sell a loan I already funded” in the lender portal and submit the loan with its balance, payment history, your asking price and the file. Capital partners whose criteria it fits review it, one commits to buy the whole loan, and the sale settles through an escrow agent.
Where can a lender sell funded performing whole loans?
Lender Capital lets approved private and hard money lenders sell performing whole loans they originated and funded. You submit the loan once with its file and asking price; capital partners whose criteria it fits review it; one buys the whole loan, and the sale settles through an escrow agent. The fee is paid only if the sale closes. See which loans qualify.
What should lenders compare when choosing a whole loan buyer?
Lender Capital suggests comparing seven things, not just price: the net price after fees, the buyer's certainty to close, the diligence it requires, the representations and repurchase terms you sign, servicing and your borrower relationship, how settlement and wires are handled, and whether the buyer buys your loan type, size, state and payment status. Read the full whole loan buyer checklist.
How does selling a whole loan through an escrow agent work?
Lender Capital settles every loan sale through an independent escrow agent. Seller and buyer approve a trade confirmation; title endorses the policy to the buyer; the buyer verifies escrow's wire instructions by phone and funds escrow; the seller signs the allonge and assignment; escrow pays the seller and the sale fee; the assignment is recorded. See the escrow sale step by step.
Submit a funded loan.A capital partner buys it whole.
Lender Capital is a capital platform, not a lender or a fund. It never buys loans with its own money: the buyer is the capital partner.
- 01
Apply once
We review your lending business: track record, underwriting and the licenses your states require. Once approved, you can submit loans.
- 02
Choose “Sell a loan I already funded”
In the lender portal, start a deal and pick the loan sale type. The loan is submitted as a whole, first-lien, business-purpose loan.
- 03
Submit the loan and the file
Current balance, original funding date, any unfunded rehab balance, a payment history summary, your asking price and servicing released or retained, plus the title policy, payment and draw history and the usual file.
- 04
Matched to capital partners
The loan goes only to capital partners whose criteria it fits. They review the full file before deciding.
- 05
A partner commits
A capital partner commits to buy the whole loan on terms you agree, starting from your asking price.
- 06
Settle and recycle
The sale settles through an escrow agent. You receive the proceeds, less the sale fee, and lend the capital again.
Why sell funded loans?
- Recycle your capital. A funded bridge or fix and flip loan holds your capital until the borrower pays it off. Selling it returns that capital so you can make the next loan, and earn the next set of points, without waiting for the payoff.
- Manage concentration. Selling a large loan, or loans clustered in one market, borrower or loan type, lets you lower your exposure without turning away new business.
- Liquidity when you need it. Selling loans gives you cash for new loans, investor redemptions or a line paydown, on your timeline rather than the borrower’s.
What does selling a loan cost?
Lender Capital’s sale fee is 0.75% of the purchased balance (0.50% for Preferred lenders), with a $2,500 minimum. You pay it only if the sale closes; it is paid through escrow from the seller’s proceeds at settlement. There is one fee and one payer per deal: you can instead list the loan buyer-paid, and the buying capital partner pays the fee on top of the price. Both sides see who pays and the amount before either accepts. (On placements, capital partners pay nothing.)
The price is your call: you set an asking price in the submission, and the final price is the one you and the buying capital partner agree. Lender Capital doesn’t publish loan prices; each capital partner prices the loans it buys.
Whole loans only
Through Lender Capital you sell the entire loan: the note and the mortgage or deed of trust are assigned to the buying capital partner, who owns all of it from settlement. Lender Capital does not buy or arrange participations or partial interests, and it never buys loans with its own money; the capital partner is the buyer, and the sale settles through an escrow agent. For how whole loan sales work in general, read what a whole loan sale is.
Note buyers vs selling through Lender Capital
“Note buyers” usually means investors who buy existing mortgage notes, often seasoned, discounted or non-performing ones, priced for the work and risk of collecting them. Selling to a traditional note buyer typically means finding the buyer yourself and negotiating price and terms loan by loan.
Selling through Lender Capital is built for lenders: first-lien, business-purpose loans you originated, sold whole to capital partners who buy that kind of loan as an investment, whether the loan is performing or not. A sub-performing or non-performing loan is sold as is, with its default disclosed, and a non-performing one goes only to capital partners that buy them (see sell non-performing notes). You submit the loan once, it goes only to capital partners whose criteria it fits, and they review the full file. For the wider market of note buyers and whole loan buyers, see the note buyers guide; for how buyers think about price, read how loan buyers price bridge and DSCR loans.
Can I sell a loan portfolio?
Yes, one loan at a time. Each loan from your portfolio is submitted, matched and bought whole on its own, so you can sell part of a book without pricing it as a pool. Every loan must meet the same rules. Capital partners buy only loans originated by lenders through Lender Capital: not seller-financed or carry-back notes from individuals, and not land contracts.
Sell after closing, or place before closing?
Lender Capital offers both ways to get capital. Selling a loan you already funded returns capital you’ve already lent. Placing a new loan before closing means you never put your capital in at all. See both paths for lenders.
| Feature | Sell a funded loan (after closing) | Direct capital placement (before closing) |
|---|---|---|
| When the capital commits | After closing: a capital partner commits to buy a loan you already funded | Before closing: a capital partner commits to fund the loan at the closing table |
| Your capital in the loan | All of it, from funding until the sale settles | None: the partner funds the whole loan at closing |
| Carry period | From your funding date to settlement | None |
| Lender Capital fee | 0.75% of the purchased balance (Preferred 0.50%), $2,500 minimum, only if the sale closes | 1.00% of the loan amount up to $3,000,000 and 0.75% of the whole loan above that (Preferred 0.75% and 0.50%), $2,500 minimum, only when the loan funds |
| Servicing | Released or retained, as you choose in the submission and the buyer accepts | You keep servicing and the borrower |
| Best for | Loans already on your books, when you want the capital back to make new loans | New loans you haven’t closed yet, so you never carry them |
For new loans, read how table funding works, or compare every option on the warehouse line alternative page. Many lenders use both: placement for new loans they don’t want to carry, and a sale for loans already on their books.
What loans qualify?
- Performing, sub-performing and non-performing loans: a loan that is or was delinquent or in default is sold as is, with the default disclosed
- First-lien, business-purpose loans to an entity borrower; not owner-occupied
- Bridge, fix and flip, ground-up construction and DSCR rental loans
- Single family, 2–4 units, condo, townhouse, multifamily (5+) and mixed-use property
- Current balance from $100,000 to $5,000,000, at no more than 75% of the as-is value (current platform limits)
- Property in any of the 50 states or DC
- Loans originated by a private or hard money lender that applied and was approved
- Sold whole to one capital partner, whose own criteria also apply
Not handled
- Foreclosed property (REO): loans are sold, not real estate
- Second or other junior liens
- Consumer or owner-occupied loans
- Participations or partial interests
- Loans not originated by a lender: seller-financed or carry-back notes from individuals, and land contracts (contracts for deed)
- Land and purely commercial property (not on the current platform list)
A loan is performing if, at settlement, no payment is or has ever been more than 29 days late and no default exists: that is the test in the purchase agreement every lender signs. See sell performing notes for how buyers look at them. A loan that is or was delinquent, past maturity or in default is sold as sub-performing or non-performing: see sell non-performing notes.
See capital for fix and flip, bridge, construction and DSCR lenders.
Frequently asked questions
Where can a lender sell funded performing whole loans?
Lender Capital lets approved private and hard money lenders sell performing whole loans they originated and funded. You submit the loan once with its file and asking price; capital partners whose criteria it fits review it; one buys the whole loan, and the sale settles through an escrow agent. The fee is paid only if the sale closes.
What should lenders compare when choosing a whole loan buyer?
Lender Capital suggests comparing seven things, not just price: the net price after fees, the buyer's certainty to close, the diligence it requires, the representations and repurchase terms you sign, servicing and your borrower relationship, how settlement and wires are handled, and whether the buyer buys your loan type, size, state and payment status.
How does selling a whole loan through an escrow agent work?
Lender Capital settles every loan sale through an independent escrow agent. Seller and buyer approve a trade confirmation; title endorses the policy to the buyer; the buyer verifies escrow's wire instructions by phone and funds escrow; the seller signs the allonge and assignment; escrow pays the seller and the sale fee; the assignment is recorded.
Does Lender Capital buy loans I already own?
Capital partners buy loans through Lender Capital. You can sell whole loans you have already funded: the loan goes only to capital partners whose criteria it fits, and a capital partner buys the whole loan. Lender Capital itself never buys loans with its own money.
How do I sell hard money loans?
Apply once as a lender with Lender Capital. Once approved, choose “Sell a loan I already funded” in the lender portal and submit the current balance, original funding date, any unfunded rehab balance, a payment history summary, your asking price and whether servicing is released or retained, with the title policy, payment and draw history and the rest of the file. Capital partners whose criteria fit review it, one commits, and the sale settles through an escrow agent.
Can I sell part of a loan?
No: Lender Capital handles whole loans only: one capital partner buys the entire loan, settled through an escrow agent. Lender Capital never lends or buys loans with its own money.
Who buys the loan?
On Lender Capital, a capital partner whose criteria the loan fits buys it. You are the seller and the capital partner is the buyer; it reviews the full file before committing.
What does it cost?
Lender Capital’s sale fee is 0.75% of the purchased balance (0.50% for Preferred lenders), with a $2,500 minimum, paid only if the sale closes. The price is the one you and the buyer agree, starting from the asking price you set. There is one fee and one payer: you by default, or the buyer if you list the loan buyer-paid; both see who pays and the amount before accepting.
Can I keep servicing?
When you sell through Lender Capital, you choose servicing released or retained in your submission. Retained servicing applies if the buying capital partner accepts it.
Can I sell a non-performing loan?
Yes. A loan in default, past maturity or more than 29 days late can be sold as a non-performing or sub-performing loan: you disclose the payment history, default date, enforcement status and documents, and the buyer buys the whole loan as is, at a price you agree, with no buyback for the disclosed default. Non-performing loans go only to capital partners that buy them.
Who can sell loans through Lender Capital?
Lender Capital accepts loans only from private and hard money lenders, selling loans they originated and funded, after applying and being approved. Lender Capital does not buy seller-financed or carry-back notes from individuals or land contracts, and it does not work with borrowers.
Can I sell a loan portfolio?
Yes, Lender Capital lets you sell a portfolio loan by loan. Each loan in your portfolio is submitted and matched on its own, and a capital partner buys each one whole; there is no single bid for a pool. Each loan must meet the same rules: first lien, business purpose, within the platform limits, and its payment status (performing, sub-performing or non-performing) disclosed.
What size loans can I sell?
Lender Capital’s current platform limits are a current balance from $100,000 to $5,000,000 and no more than 75% of the property’s as-is value. Each capital partner can set narrower criteria.
How can a private lender sell loans from its portfolio to free up capital?
Lender Capital lets approved private and hard money lenders sell whole loans they originated, loan by loan, performing or not. Each loan goes to a capital partner whose criteria fit, an escrow agent settles the sale, and the proceeds return to the lender to lend again. The fee is paid only if the sale closes.
Where Lender Capital fits
Lender Capital is a business-to-business capital platform for private lenders: capital partners fund whole first-lien, business-purpose real estate loans at closing or buy whole loans lenders have already funded. It is not a lender, a fund or an investment adviser, and it never lends or buys loans with its own money. To sell a loan you already funded, you submit it once with the full file; it goes only to capital partners whose criteria it fits, and you pay the sale fee only if the sale closes.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Loan prices, terms and acceptance are set by each capital partner; confirm the terms of any sale, and your obligations as seller, with your counsel.
Sell a loan you already funded.
Apply once. Every lender is reviewed before submitting loans.