Frequently Asked Questions

A private lender is an individual, corporate entity, or financial entity such as a self-directed IRA or a Solo 401k, that loans or invests money.

Bel Air Lending is committed to providing passive investors with access to real-estate-backed lending opportunities designed to pursue attractive income potential while supporting their long-term financial goals and aspirations for future generations.

Bel Air Lending specializes in real-estate-backed lending opportunities, including buy-and-hold projects, fix-and-flip properties, new construction, and land development loans. Our goal is to provide attractive risk-adjusted returns through disciplined underwriting and multiple risk-mitigation measures.

Generational wealth involves creating a lasting financial legacy for your family. As Proverbs 13:22 states, 'A wise person leaves an inheritance for their grandchildren.'

We offer simple annualized interest rates accruing daily until the property is sold or refinanced. The interest rate depends on the length of the project.

Each investment has a stated anticipated term that is disclosed in the offering documents. While many opportunities are designed as short-term real-estate-backed loans, actual repayment may occur before or after the anticipated maturity date.

Real estate projects can experience delays related to construction, permitting, inspections, market conditions, borrower performance, or financing availability. For that reason, investors should understand that repayment timing cannot be guaranteed and that investments may remain outstanding longer than originally projected.

No, all funds are given or wired to our trust attorney, Steve Lowry, made payable to the attorney's trust fund and released after the proper documents are filed at the local county Register of Deeds.

Each loan is secured by a specific property with a first-position Deed of Trust and a promissory note (recorded in the county where the property is located), and borrowers sign personal guarantees. If a borrower cannot complete a project, Bel Air Lending may step in to manage or complete it. These measures are designed to reduce risk, but they do not eliminate it.

Title searches and title insurance are obtained. Builder's Risk or Hazard insurance is purchased: we are listed on the insurance policy as the mortgagee. When building new construction, we or the builder obtains Builder’s Risk, Liability, and Workman's Comp. insurances.

Yes, all interest earned or gains are taxable, and you will be receiving a 1099-INT in January. If you have loaned us money from your self-directed IRA, then we will send you a FMV (Fair Market Value) of your investment by December 31st of each year.

1. Self-directed IRA, 401k, Roth IRA (visit solo401k.com for options available to you for self-directing in real estate). Our lenders have used funds self-directed in real estate from an HSA (Health Saving Account), Roth IRA, Solo 401K & traditional IRA.

2. Cash loan- personal or business accounts.

If a property does not appraise at the expected value, several outcomes may be possible, including an extension of the loan term, a property sale, additional capital contributed by the borrower, alternative financing arrangements, or other workout solutions.

Each situation is unique, and outcomes depend on the specific circumstances of the project, borrower, market conditions, and available options at the time. As with any investment, repayment of principal and interest is not guaranteed, and investors should carefully review the risks described in the applicable offering documents.

Because your investment is structured as a secured loan rather than an equity stake in the project, your return does not depend on the project’s profitability — but the loan remains at risk if the borrower defaults and the collateral is insufficient to repay it. Here are some items we have in place to mitigate risk:

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• Your investment has collateral of real property in the form of a first-position lien.

• We have hazard & fire insurance. We are listed as the mortgagee. If the policy is cancelled, we get notified from the insurance company.

• All documents are created by an attorney and funds are only given to and released by an attorney.

• We have a Deed of Trust recorded on the property, with back up Promissory Notes and Personal Guarantees.

• We recommend and sometimes require a licensed home inspection report before purchasing. 

• Because we only lend locally, you can visit the project before you invest or anytime after to see the progress. You can touch and feel it, as well as talk to anyone there.

• We have extensive experience with building new homes and rehabbing homes (over 50 rehabs and 65 new builds as of May, 2026).

• We are big proponents of continuing education. Real Estate markets change from time to time. We want to know about it.

• We only use your funds for that specific project.