Real estate investors nationwide are changing how they fund their projects. Many now turn to private capital, which is money lent by private companies and investors instead of banks. Michael Iuculano has watched the shift closely over more than two decades in lending. He founded and leads MJI Capital, a Scottsdale firm that lends nationwide.
“Investors need capital partners who understand the market, act decisively, and focus on the asset rather than excessive red tape,” Iuculano said.
Why Speed Matters to Investors
In active markets, a desirable property can draw several buyers at once. An investor who can close quickly often has the advantage over one waiting on a bank.
Iuculano points to longer approval timelines and tighter underwriting at traditional banks. Underwriting is the lender’s review of the borrower and the property, and at a bank it can stretch on for weeks. Those weeks can cost an investor the property.
Private lenders work on a different model. They focus mainly on the property’s value and the borrower’s plan, so they can often make decisions in days. “We operate off speed and service, undeniably,” Iuculano said.
A National Reach With Arizona Roots
MJI Capital funds loans in states across the country. Arizona and California make up a large share of the firm’s volume, and Arizona remains Iuculano’s home market.
“Arizona remains one of the most active real estate markets in the country,” he said. His years in Scottsdale give him a close view of how one fast market behaves. The same pressures on speed and pricing appear in busy markets from coast to coast.
Who Uses Private Capital
Investors who buy older homes to renovate and resell often rely on hard money loans. A hard money loan is a short term loan from a private lender, approved mainly on the value of the property. The speed of that approval can help an investor secure a home before another buyer does.
Builders and developers may use private capital to buy land or fund construction. Some use a bridge loan to cover the gap between project stages. Flexible terms can keep work moving while a longer term loan is arranged.
Business owners who work for themselves face a different obstacle. Their income often does not appear on a traditional pay stub. A bank statement loan lets them qualify using deposits in their bank accounts instead.
Some business owners need cash tied to sales rather than property. MJI Capital also offers merchant cash advances, which give a business cash up front in exchange for a share of its future sales.
Speed With Structure
Iuculano adds that fast funding is only part of the job. “Private capital is not just about speed,” he said. “It is about structuring smart deals that help investors capitalize on opportunities while managing risk responsibly.”
MJI Capital reviews each request by searching for problems first. Iuculano wants to find any issue that could stop the closing before the borrower commits time or money.
“I want to know what is going to kill my deal, and I want to know it as close to the front side of the transaction as possible,” he said. “Now I know I am working on a deal that has a high probability of closing, which is the best use of my time and the borrower’s time.”
The same review lets him give borrowers early answers. When a deal has a low probability of closing, he tells the borrower before more time is spent.
A Recent Example
One recent client owned a home worth about $12 million with no mortgage. His company earned between $2 million and $2.5 million a month, and he had good credit. He still needed cash fast to buy inventory for a large order.
MJI Capital arranged a $4 million loan secured by the home. “He needed speed because he had a huge order,” Iuculano said. “He needed to pay for the inventory.”
Private capital is not only for borrowers who struggle to qualify at a bank. For this client, timing mattered more than anything else.
An Investor on Both Sides of the Deal
Iuculano does more than lend to investors. He buys and sells homes himself and holds rental properties. Over more than 24 years, he has bought and sold hundreds of homes.
On his own purchases, he weighs repair costs, holding costs, and closing costs before making an offer. Investors who borrow from him face the same math.
Experience That Investors Rely On
Iuculano has worked in lending since 2002. As of October 2026, he has closed more than 3,300 transactions and more than $2.3 billion in loans. He runs a branch of Barrett Financial Group, the mortgage brokerage behind his lending.
At Barrett Financial Group, he has earned President’s Club honors for eight years in a row, placing him among the top 35 of roughly 2,400 loan officers. A loan officer is a licensed professional who guides borrowers through the mortgage process.
He also founded Hard Money Lenders Arizona, a private lending firm with more than 300 positive online reviews. Much of his business comes from referrals.
What Comes Next
Iuculano expects private lending to play a larger role as housing demand continues and bank approvals stay slow. Investors increasingly want lenders who close reliably and make decisions directly.
For Michael Iuculano and MJI Capital, the work comes down to early answers and fast funding. In a market where good properties move quickly, those two factors can decide which investor wins the deal.
Michael Iuculano, Mortgage Loan Originator, NMLS ID 370470
