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Private Money Lending
6.5
Fair
description Private Money Lending Overview
Private money lending involves acting as the bank for other real estate investors. You provide the capital for a flip or a BRRRR project, secured by a mortgage or deed of trust on the property. In exchange, you receive a fixed interest rate, typically ranging from 8% to 12%. This is a highly passive strategy that provides consistent cash flow without the responsibilities of property management.
It is ideal for investors who have capital but lack the time or desire to manage physical real estate, provided they have the expertise to properly vet deals and borrowers.
help Private Money Lending FAQ
What is Private Money Lending?
Private money lending involves acting as the bank for other real estate investors. You provide the capital for a flip or a BRRRR project, secured by a mortgage or deed of trust on the property. In exchange, you receive a fixed interest rate, typically ranging from 8% to 12%. This is a highly passive strategy that provides consistent cash flow without the responsibilities of property management. It is ideal for investors who have capital but lack the time or desire to manage physical real estate, provided they have the expertise to properly vet deals and borrowers.
How good is Private Money Lending?
Private Money Lending scores 6.5/10 (Fair) on Lunoo, making it rated in the Finance Insurance Banking category.
What are the best alternatives to Private Money Lending?
See our alternatives page for Private Money Lending for a ranked list with scores. Top alternatives include: SBA 7(a) Loan Program, Wise, Vanguard Personal Advisor.
How does Private Money Lending compare to SBA 7(a) Loan Program?
See our detailed comparison of Private Money Lending vs SBA 7(a) Loan Program with scores, features, and an AI-powered verdict.
Is Private Money Lending worth it in 2026?
With a score of 6.5/10, Private Money Lending is a solid option in Finance Insurance Banking. See all Finance Insurance Banking ranked.
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