Private lenders are a precious resource for real estate investors, and especially property wholesalers. Who are they? Where do you find them? How do you get a real estate loan from private lenders?


Private money lending is becoming much more popular in real estate than it used to be. This is thanks to more awareness of the opportunity, highly respected publications touting its benefits, and changes in the economy and financial markets. It used to be that real estate investors had to rely on their own cash savings, main street banks, and mortgage bankers or brokers for institutional mortgage loans. After the crises of 2008, the banks left investors hanging and these big lending institutions lost a lot of credibility among savers and all types of investors. They simultaneously created a big void in financing for real estate and sent individuals with capital scrambling for ways to safely and profitably put their money to work where they would be appreciated. Now we have an explosion of private individuals eagerly looking to loan their money on real estate.

To ​locate Private Lenders in your area, Click Here.

Who Are Private Money Lenders?

There are some companies which pool private money to broker loans on real estate deals, but private lenders are really individuals with money to invest. They can be anyone who has savings and capital for investment. Some are already actively loaning on real estate, others are waiting for the opportunity.

They may be:

  • Doctors, lawyers, and CEOs with great incomes and surplus cash
  • Individuals with sizable retirement savings in 401ks or IRAs
  • Retirees needing streams of passive income
  • Beneficiaries of estates and trusts
  • Tech entrepreneurs with successful startups
  • Lottery winners
  • Your friends, family and neighbors

Why They Lend

There are lots of reasons that these individuals are compelled to invest this way, including:

  • Needing to grow nest eggs faster
  • Lack of acceptable returns elsewhere
  • Need for passive income streams
  • Attraction to real estate investment, but lack time and knowledge
  • Excited about this new way to invest
  • Desire for secure investments
  • Terms Private Lenders Expect
  • What do private money lenders expect out of making loans?

    • Safety for their capital
    • Good reporting and communication
    • Consistent returns
    • Above average returns
    • Ongoing income
    • Some type of documentation securing their investment
    • Some private lenders already have experience and have some specific loan terms they like to include. Others are highly flexible and may entertain a wide variety of loan terms and features providing they meet their goals and satisfy their need for security.

    The Benefits of Using Private Lenders

    • Faster closings
    • More flexibility in loan terms
    • No underwriting hassles
    • Attractive rates
    • Unlimited number of deals can be funded
    • Not encumbering personal credit
    • Being able to fund deals that banks won’t


    There are many more private lenders, and potential private lenders out there than most investors are aware of. However, they have often been elusive to find. Finding and securing them as a financial partner has taken up many weeks and months, and dollars of investors’ time. The more wholesalers can streamline this process the faster they can just get to flipping houses and bringing in the money.

    So where can you find private money lenders for your real estate deals?

    • Local real estate investment clubs
    • Real estate seminars and events
    • Through mortgage brokers
    • Online real estate forums
    • Referrals from other investors
    • How To Find Private Mortgage Lenders
    • Public Records

    If you know what to look for you can even find private lenders who aren’t out there offering their money. You can beat the competition to the capital and the most attractive sources of financing. After all many wealthy individuals don’t want to post an open casting call to the world to knock on their door asking for a dollar. So how do you find these lenders?

    Public records can reveal a lot about your real estate market, property owners, properties, and yes – lenders too. Public records can be tapped for information on who is making loans on properties, who owns properties free and clear, who owns investment properties, and more. These are all clues to finding private mortgage lenders. You can get this information by going to your local records office and searching yourself. Of course that can take an immense amount of time. Fortunately, technology and the best real estate software is making it easier than ever to get these records online, and to hone in on the ideal private lender candidates.