Private Lending vs. REITs: Which One Actually Pays You First?

By Dan The Hard Money Man

REITs are great—if you like layers of fees, market exposure, and a mysterious quarterly dividend. But when you invest in private lending funds, your capital goes directly into secured real estate loans. And you get paid first.

In a typical REIT, your money is pooled and scattered across dozens (or hundreds) of properties, often with equity-style risk. That means:

• You get paid after debt holders
• Your returns are tied to market performance
• You often have zero transparency into the deals

Contrast that with a hard money lending fund like ours:

• Your investment is in first-lien debt
• You earn fixed, contractual interest
• You’re backed by real property, not stock market swings

In short: REITs make you a shareholder. Private lending makes you the lienholder. And lienholders eat first.