Tired of banks saying no to your real estate deals? You’re not alone. But there’s a faster, smarter way to get funding—private money loans for real estate investing. With this step-by-step guide, you’ll learn how to raise capital, find private investors, and fund more deals—without credit checks, banks, or red tape.
Private money is when a person—not a bank or lending company—gives you money to buy or fix a property. This money often comes from their savings or retirement accounts. Unlike hard money loans (which go through companies), private money lending is a personal agreement between you and the lender.
The private lender acts like a bank, but you don’t have to give up part of the property. They just want their money back with interest. It’s a win-win!
Private money is helpful because it’s:
You can also raise as much as you want. There's no cap on how many people you can work with or how much they can lend.
Pros of Private Money
Cons of Private Money
Private money is great when you need cash fast or when a regular loan isn’t an option. For example:
In these cases, having private money ready lets you act fast and win the deal.
You might wonder, “Why would someone give me money to invest?”
Here’s why:
Start by listing people you already know. Look through your phone, email, and social media. You probably already have friends, family, or co-workers who want to earn more on their money.
Write down:
Also think about anyone in real estate, finance, or business who might be open to investing.
Reach out in a simple and friendly way. You’re not pitching a deal—you’re starting a conversation.
Try asking, “Do you have savings or retirement money that isn’t earning a high return right now?”
Or say “I’m working on some real estate projects and could use your help. Can we chat?”
These soft openers spark interest without pressure.
Once someone is curious, give them a short audio message that explains what private money lending is. This helps them learn without you needing to explain everything.
Make sure the audio talks about:
This step builds trust.
When they want to learn more, set up a meeting (in person or on Zoom). Show them a simple PowerPoint presentation.
Cover:
Be clear, calm, and honest. Your goal is to teach, not sell.
After your talk, ask them if they’re ready to get started. Find out if they want to use savings or a retirement account. If they choose retirement funds, introduce them to a self-directed IRA company.
This turns interest into real money you can use for deals.
What is private money in real estate investing?
Private money is when a person lends you their own savings or retirement funds to help you buy or fix real estate. It’s not from a bank. It’s faster, simpler, and gives the lender a better return than most savings accounts. The loan is backed by the property to help protect the lender.
Watch this quick video to see how private money works in real estate—and how you can start using it to fund your next deal today!
Q: How do I find private lenders for real estate?
Start with your existing network—friends, family, or business connections. You can also meet potential lenders through local real estate groups, social media, and networking events.
Q: Is private money better than bank financing?
Often, yes. Private money is faster, more flexible, and doesn’t require credit checks. It’s perfect for fast-moving deals like auctions or fix-and-flips.
Q: Is private lending safe for the lender?
Yes, when done right. Loans are secured by real estate (just like a mortgage), and lenders can earn strong, stable returns.
Getting private money doesn’t have to be scary or complicated. When you keep things simple and honest, people will want to work with you. Just follow the five steps, and you’ll be on your way to funding more deals, making better offers, and growing your real estate business.
Start talking to the people you already know. Teach them how private lending works. Show them you’re someone they can trust. You’ll be surprised how many will say yes—and how fast your business can grow.
Start today. The money is out there. You just need to ask.