A private money lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and mortgage/deed of trust, for the purpose of funding a real estate transaction. Private money lenders are generally considered more relationship-based and focused on the property than banks or institutional lenders.  

Usually private money is used by real estate investors that develop property, rehab houses and resell (flippers) and those that buy at auction. But it can also include those that purchase rental properties. But private lending can also be for the purchase of a business or an interest in a business.

Technically a hard money lender is closer to an institutional lender, such as a bank or credit union. However, they may be making loans to the same group of people. Typically, the loans we are teaching here are private and relationship based. We are teaching the individual to lend money as a passive form of revenue. A hard money lender is typically a business operation. We are not teaching that here.

Private lenders can charge much higher interest rates than a regular mortgage. Private lending is the only real passive investment in real estate. No other strategy allows for nearly no involvement in real estate transactions. Borrowers get a loan based on the property value, not their credit, and can move more quickly than with a bank.

A borrower makes a request for funding for a project usually by submitting an application. The lender evaluates the property, the value and the repairs/changes to be made to the property. The title for the property is evaluated and the decision made to lend. Terms of the loan are issued by lender. Documents are prepared and the loan is made under controlled conditions. The project is funded with the title company and the term of the loan establishes the time and interest rate. The typical loan is for a six month term. The project is completed and sold or refinanced and the lender is paid.

Any investment of your money has a risk factor. Whether it's the stock market, your company retirement account or even a savings account. The trick is to minimize the risk as much as you can before you make the investment. Our program teaches exactly how to help you do that.

No. We get this question very frequently. We are not teaching the creation of institutional loans. This is the exact opposite. Bank loans are expensive, time consuming and take a long time. We are structuring our money to work for us. A mortgage lender license requires testing and certification courses. We do not need any of that. We make private loans to commercial and non-owner occupied properties. We do not need a license.