Securing funding is a crucial step in any real estate investor's journey. While traditional financing methods such as bank loans and government-backed mortgages are well known, private lenders are an often-underutilized yet incredibly powerful alternative. Private lenders can provide the flexibility, speed, and access to capital that traditional institutions sometimes can't offer.
This article walks you through a step-by-step process on how to find private & hard money lenders, helping you unlock the full potential of your real estate investing career.
Before diving into the how-to, it’s important to understand what private lenders are. A private lender is an individual or organization that provides loans using their own capital, outside of traditional banking institutions. These lenders may include:
Private loans are typically asset-based, meaning the investment property serves as the collateral, which makes them especially attractive for real estate investors.
Advantages of private lenders:
However, the key challenge is finding these lenders and earning their trust. Let’s dive into the process.
Before reaching out to lenders, be clear on:
This matters because different lenders specialize in different deal types. If you're flipping homes, you’ll want lenders who understand short-term, high-return models. If you're building a rental portfolio, you might prefer long-term relationship lenders. For example, PrivateLenders.com is especially useful for flippers and prospective landlords.
To build trust and mitigate risk, show you’re a serious investor. It’s a good idea to prepare the following items.
Highlight some of your real estate investments and accomplishments, like:
Create a mock or actual deal package including:
o Be sure to include the comps you used to calculate a purchase price
o Be sure to include the comps you used to calculate ARV
Connected Investors can help pull this information together by using advanced AI generated comparable tools and Investor grade calculators to illustrate numbers. (Claim a FREE trial today)
Especially important for new investors. Include things like:
One option when deciding how to find private money lenders itis to start with people you already know.
Don't ask for money directly. Instead, explain what you're doing and share success stories. Interested parties will inquire on their own. Be sure to meet with an attorney to draft any documents needed to protect yourself and investors and provide clear expectations.
Real estate investment clubs, local REIAs (Real Estate Investor Associations), and seminars are filled with experienced and beginner investors, many of whom have capital but lack deal flow.
Come prepared with:
Focus on building relationships first, not pitching everyone immediately.
Private lenders often research investors online before committing to a deal. Make sure your digital footprint works in your favor. Create some or all of the following to improve your presence in digital spaces.
This builds authority, visibility, and trust over time. Eventually, lenders will find you.
One of the most efficient ways to connect with verified private and hard money lenders is by using PrivateLenders.com. It’s a dedicated platform designed to match real estate investors with private lending opportunities across the U.S. Whether you're a new investor looking to fund your first deal or a seasoned pro scaling your portfolio, this site can be a powerful resource by providing multiple connections instantly.
PrivateLenders.com is a match-making service for real estate investors that connects borrowers with pre-screened private and hard money lenders. The site allows investors to input specific deal criteria such as property type, loan amount, and location, and match with lenders that fit their needs.
It’s especially helpful for:
PrivateLenders.com removes much of the legwork traditionally associated with finding private money. Rather than cold-calling, networking endlessly, or submitting applications to random websites, you can use one site to connect with already vetted lenders who are actively funding deals just like yours.
Simply, it saves incredible time as verified private lenders compete for your business. Unlike banks, these lenders provide fast access to funds, provide flexible loan terms, and have programs designed for investors.
These events bring together seasoned investors, private lenders, fund managers, and capital providers. Some recommended conferences include:
Bring a professional appearance, your business plan, and an open mind. Don’t just pitch. Instead, listen to lenders’ pain points and what they look for in a borrower.
Many individuals with retirement savings in Self-Directed IRAs (SDIRAs) are looking for ways to generate returns outside of stocks and bonds. Real estate loans secured by property are an attractive option for them. To find them, consider the tips below.
You can position your deals as secure, asset-backed ways to grow retirement funds.
Some professionals specialize in connecting real estate investors with private lenders. These may include:
While you’ll likely pay fees or points, it can save significant time, especially on larger or more complex deals.
Make sure you review the broker’s track record and understand the cost structure.
Once you find private lenders, your focus should shift to retention and trust-building.
Over time, one private lender might fund multiple projects or refer you to others that may be better suited for the deal at hand. Relationship equity is your most valuable capital source.
PrivateLenders.com has distributed nearly $500 billion in funding requests from more than 625,000 investors – and can help you secure the capital to acquire, renovate, rent out, or sell your next property. With so much money available, it should be a first stop for any real estate investor looking for outside, private loans.
Ready to see what a private lender can do to help you fund your real estate deals? Start the process on PrivateLenders.com. Get matched with a private lender for flip funding or for rental funding today.