Borrowing from individuals instead of institutions — flexible terms, fast decisions, relationship-driven.
Private money lending is when an individual — not a bank or institution — loans you funds to purchase real estate. These lenders are typically high-net-worth individuals, family members, friends, or fellow investors who want to earn a return on their capital secured by real property. Terms are negotiated directly between borrower and lender, making this one of the most flexible financing options available.
Find a Private Lender
Identify an individual willing to lend — often through your network, investor meetups, or referrals.
Negotiate Terms
Agree on interest rate (typically 6–12%), loan term, repayment structure, and collateral (the property).
Draft a Promissory Note
A legally binding note and deed of trust are prepared by a real estate attorney to protect both parties.
Fund & Close
The lender wires funds to escrow, you close on the property, and begin repayment per the agreed schedule.
Private money is perfect for investors who have a strong network but limited liquid capital, or who need flexible terms that a traditional bank won't offer. It's especially powerful for value-add deals where the property needs work before it can qualify for conventional financing.
Ready to put your capital to work?
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