Posted on October 27th, 2025.

Who this is for: real estate investors, flippers, and landlords who need speed and flexibilitymore than a bank’s lowest rate.

What you’ll learn: what private money lending is, how hard money loans fit in, where private lenders and mortgage brokers come in, typical funding options and loan terms, and how to get from “deal found” to “funded.”

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First, the point: you don’t get paid for paperwork. You get paid for speed.

Deals are perishable. Sellers set short fuses. Wholesalers push assignments to whoever can perform. If you’ve ever watched a bank underwriter take a nap on your file, you already know why private money lending exists.

Private lenders and private-money brokers exist to solve a different job than traditional banks: help real estate investors close fast with common-sense, asset-based underwriting. In plain English: if the property and exit make sense—and your file is clean—you can often move in days, not weeks.

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What is private money lending?

Private money lending is real estate financing from non-bank capital: individual investors, private funds, or companies focused on speed and collateral over deep borrower profiling. These are short-term, often interest-only loans designed for acquisitions, rehabs, wholetails, BRRRRs, and quick refis into long-term products.

You’ll hear two phrases used interchangeably:

• Private money loans (umbrella term)
• Hard money loans (a common subtype in real estate)

Both are asset-based: the property, purchase price, rehab budget, after-repair value (ARV), and exit plan do most of the heavy lifting. That’s why real estate investors use them to win time-sensitive deals.

Keywords in play: private money lending, hard money loans, real estate financing, private lenders, real estate investors, funding options, loan terms.

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Private money vs. traditional bank loans (the 20-second version)

• Speed: Private = days. Bank = weeks.
• Underwriting: Private = asset-focused (LTV/LTC, scope, exit). Bank = borrower-focused (DTI, tax returns, W-2s).
• Flexibility: Private = draw schedules, interest-only, creative structures. Bank = standardized products, stricter boxes.
• Cost: Private is usually pricier than banks—but the opportunity cost of missing a deal is often higher.

If you need a rental for the long haul, you’ll often bridge with private moneyand refi to a DSCR or agency product later. That’s the “bridge-to-DSCR” path many operators run.

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When private money shines (use cases)

1. Fix & Flip / Wholetail
   Acquire under market, execute value-add, exit quickly. Private money lenders for fix and flip projects keep you moving when inspection/appraisal delays would kill your contract.
2. BRRRR / Rental Stabilization
   Close fast, rehab, lease, and refinance into long-term DSCR. This is where private money lending for rental properties makes sense: speed now, cheaper hold later.
3. Auction / Assignment / EMD Crunch
   You’ve got how to get a private money loan for real estate on your mind because the EMD is due or the seller’s threatening to walk. Private funds plus clean title = you can perform.
4. High-Equity or Distressed Properties
   When condition spooks banks, private lenders look at collateral and plan.

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How private money lending works in real estate (step-by-step)

1. Deal snapshot
   Address, contract price or payoff, rehab budget, timeline, exit (flip vs. refi). Be specific.
2. Quick comp logic + budget sanity check
   Your broker or lender validates ARV ranges and looks for red flags (scope creep, under-budgeted labor/materials, permitting).
3. Indicative terms
   A non-binding summary of loan terms (amount, interest-only rate, points, term length, fees, draw process). This is where you decide if the math still pencils.
4. Title + insurance + entity docs
   Keep your entity clean, insurance ready, and liens cleared.
5. Close + draw management
   On rehab deals, funds are controlled via draws. You request, provide photos/invoices, and keep the job moving.
6. Exit
   Flip and close, or hit DSCR metrics and refinance into a longer, cheaper hold.

Want this to be hands-on? Book a 15-minute private money consult