What is Private Money Lending?

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.
- Fix-and-Flip Loans: Financing specifically for investors renovating and reselling properties quickly. See our guide to fix-and-flip financing.
- 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.

