What is Private Money Lending?

Andrew King-Boswell • July 23, 2024

 Private money lending is a specialized financing option that has become increasingly popular among real estate investors, contractors, and even first-time homebuyers. Unlike traditional bank loans, private money lending offers flexibility, speed, and creative solutions for financing non-owner-occupied properties. At Private Money Brokers, we work closely with a network of over 200 licensed private lenders across 47 states, giving our clients access to more than a billion dollars in deployable capital. Whether it’s a $30,000 HELOC or a $100 million hotel development, private money lending can provide the financial tools necessary to make your project a reality.


What is Private Money Lending?


Private money lending is essentially financing provided by private individuals or organizations rather than traditional banks. These lenders are motivated by the opportunity to earn interest on their money while helping investors bring their real estate projects to life. Unlike conventional loans, private money loans are typically based more on the value of the property or project rather than the borrower’s personal credit score. This makes them ideal for non-owner-occupied properties, such as fix-and-flip projects, ground-up construction, or bridge loans.


Types of Private Money Loans
There are several types of private money loans designed to fit various investment needs:


  • Bridge Loans: Short-term loans used to bridge the gap between the purchase of a property and its long-term financing. Learn more about bridge loans.



  • DSCR Cashflow Loans: Loans based on the property’s cash flow rather than the borrower’s income. Discover DSCR loans.


  • Ground-Up Construction Loans: Funding for building new properties from scratch.


  • Multi-Family and Mixed-Use Financing: Designed for larger investment projects, including apartment complexes or properties with both residential and commercial components.


Why Choose Private Money Lending?
Many real estate investors don’t realize how competitive the financing market can be. With the right broker, you can have multiple lenders competing for your business, which often results in better rates and terms. Private money lending provides flexibility that banks often cannot, including quicker approvals, less red tape, and creative structuring options. At Private Money Brokers, we specialize in pitching projects to lenders, negotiating rates, and finding financing that meets your specific needs—without breaking the bank.


How to Qualify for a Private Loan
Qualifying for a private money loan is generally more straightforward than a traditional bank loan. Lenders typically look at the property value, your experience as an investor, and the projected ROI of your project. While personal credit may be considered, it is not always the primary factor. For example, a seasoned investor with a strong project plan may qualify even with less-than-perfect credit.


The Role of Private Money Brokers


Having Private Money Brokers act as your trusted partner, helps you navigate the competitive lending landscape. We not only connect you with the right lenders but also offer strategic advice on loan structuring, negotiation, and project planning. Our mission is to see our clients succeed—whether that’s closing a large deal, securing a critical contract, or executing a high-return investment.


How we can help
Private money lending is a powerful tool for investors and real estate professionals looking for flexible, non-conventional financing. Even if you have an existing lender, it’s worth exploring other options to ensure you’re getting the best rates and terms possible. Reach out to Private Money Brokers today to discuss your next project, run some numbers, and discover how our network of lenders can make your vision a reality.

By Andrew King-Boswell August 24, 2025
For real estate professionals, networking with private money lenders can open doors for clients and create opportunities for faster, more flexible financing. In a competitive real estate market, knowing the right lenders and understanding their offerings can make the difference between a deal closing smoothly or falling through. Private money lenders provide access to capital that banks may not, including bridge loans, DSCR cashflow loans, and creative financing solutions for fix-and-flip, multi-family, and mixed-use properties. At Private Money Brokers, we help professionals connect with over 200 licensed private lenders across 47 states, giving your clients access to over a billion dollars in deployable capital. In this post, we’ll explore how networking with lenders benefits your clients, the types of relationships you can build, and strategies for successfully pitching projects. Why Networking With Lenders Matters Strong relationships with private lenders provide multiple advantages: Faster Funding : Lenders familiar with you and your clients are more likely to expedite approvals. Better Terms : Repeat business and trust often lead to more favorable interest rates and loan structures. Access to Creative Solutions : Networking allows you to tap into lenders who offer unconventional financing options, including DSCR loans and bridge loans. By building these connections, real estate professionals can better serve their clients, helping them achieve project goals efficiently. Practical Ways to Network With Lenders 1. Attend Industry Events and Conferences Meet lenders face-to-face, learn about their lending criteria, and build relationships. Events focused on real estate investing, property development, or finance are excellent opportunities. 2. Leverage a Private Money Broker A broker like [Your Company Name] acts as a bridge between real estate professionals and lenders. We pitch projects, negotiate terms, and ensure lenders are aware of your client’s needs. Pitching Your Project to a Private Lender is key to showcasing potential investments effectively. 3. Follow Up and Maintain Communication Consistent communication builds trust. Keeping lenders updated on new projects, successes, and repeat business strengthens long-term relationships. 4. Offer Clear Project Documentation Lenders respond well to organized proposals. Include purchase agreements, renovation plans, financial projections, and timelines. Clear documentation shows professionalism and increases the likelihood of loan approval. 5. Negotiating Rates and Terms Part of networking involves understanding how to negotiate effectively. Private lenders are often willing to adjust interest rates, repayment schedules, and loan structures when they trust the borrower and the broker facilitating the deal. By positioning your client’s project strategically, you can secure terms that maximize profitability and minimize risk. Negotiating Rates and Terms: Insider Tips offers additional strategies for professional negotiation. A Recent Example A real estate agent introduced us to her client who was seeking a mixed-use property loan. By leveraging our network and pitching the project appropriately, the client secured a bridge loan within a week, which was significantly faster than a traditional bank would have approved. The project closed on schedule, generating immediate cash flow and strengthening the relationship between the agent, lender, and client. Networking and professional presentation proved critical to the success of this transaction. Helping You Build Your Network Networking with private money lenders is an essential tool for real estate professionals aiming to provide top-tier service to their clients. By attending events, maintaining communication, and leveraging the expertise of a private money broker, you can ensure faster funding, creative financing solutions, and better loan terms for your clients. Contact Private Money Brokers today to learn how we can help you build strong lender relationships and secure the capital your clients need to succeed.
By Andrew King-Boswell August 24, 2025
Landlords often need fast and flexible financing to acquire, renovate, or expand rental properties. Traditional bank loans can be slow and restrictive, leaving investors with missed opportunities. Private money lending offers a solution, providing quick access to capital and creative financing options tailored to the needs of landlords. From multi-family units to mixed-use properties, private lenders focus on the potential of the investment, rather than just the borrower’s personal credit. At Private Money Brokers, we connect landlords to a network of over 200 licensed private lenders across 47 states, offering access to more than a billion dollars in deployable capital. Let's take a look at how landlords can use private money, the types of loans available, and strategies for maximizing investment returns. Why Private Money is Ideal for Landlords Private money lending provides several advantages for landlords: Speed : Fast approvals and funding mean you can secure properties before the competition. Flexibility : Loans can be structured for short-term renovations, cashflow-based income, or long-term investments. Creative Solutions : Options like bridge loans or DSCR cashflow loans allow you to tailor financing to the property’s potential rather than personal finances. These benefits make private money an attractive alternative to banks, especially for landlords looking to scale quickly or invest in non-conventional properties. Types of Private Money Loans for Landlords Multi-Family Financing Multi-family properties can generate significant cash flow but may be difficult to finance through traditional banks. Private lenders often provide flexible terms that consider rental income and property value. Learn more about Multi-Family Property Financing . Mixed-Use Property Loans For properties with both residential and commercial units, mixed-use loans provide financing options that banks may not offer. Explore Mixed-Use Property Lending . DSCR Cashflow Loans These loans focus on the income generated by the property, rather than the landlord’s personal income. DSCR loans are ideal for rental properties with strong cash flow potential. Discover DSCR loans . Bridge Loans Short-term financing that allows landlords to acquire properties quickly, cover renovations, or bridge gaps between loans. See how bridge loans work . How Landlords Can Access Private Money Work With a Private Money Broker A broker can connect you with multiple lenders, pitch your project strategically, and negotiate rates and terms. At [Your Company Name], we specialize in helping landlords secure financing that fits their project needs. Prepare Your Project Details Lenders want to understand the property, potential ROI, and project timeline. Provide clear documentation, including purchase agreements, renovation plans, and projected cash flow. Build Relationships With Lenders Developing a network of trusted private lenders ensures quicker approvals and more favorable terms for future projects. Repeat business and strong relationships can also improve your credibility in the lending community. A Real Life Example A landlord wants to purchase a six-unit multi-family property requiring renovations. Traditional banks took weeks to review the application, risking the deal. Through a private lender introduced by Private Money Brokers, the landlord secured a multi-family DSCR cashflow loan within 20 days, completed renovations on schedule, and immediately began generating rental income. The speed and flexibility of private money financing allowed the landlord to grow their portfolio efficiently. A Trusted Partner Private money lending gives landlords the tools to acquire, renovate, and expand rental properties quickly and efficiently. From multi-family units to mixed-use investments, creative financing solutions like DSCR loans and bridge loans make scaling your property portfolio possible. Contact Private Money Brokers today to explore your financing options, connect with trusted private lenders, and take the next step in growing your rental property business.