What is Private Money Lending?

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.  

How Does Private Lending Work?

  • Who uses private money?

    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.

  • What are benefits?

    Private lenders can charge much higher interest rates than a regular mortgage. Borrowers get a loan based on the property value and can move more quickly than with a bank.

  • How long is the money lent?

    Typically these are short term loans. The terms can vary, but they are typically six to twelve months

How Does the Process Work?

How does a lender decide to lend money privately?

  • A borrower makes a request for funding for a project usually by submitting an application

  • The lender evaulates 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

Why Become a Certified Private Lender?

What does it mean?

As a certified private lender, you will have learned to work through the process of making a loan from start to finish. You will have step-by-step instruction on how to evaluate properties and repairs effectively, read title and evaluate for problems, steer clear of legal issues,  and avoid common traps that effect your profit.


  • Do I need this course to become a private mortgage lender?

    No. Of course not. But taking the course may save you a lot of time and money. It may also stop you from making a questionable loan or learning the hard way. It's often better to have a road map then potentially get lost.

  • Is private lending risky?

    Any investment of your money is risky. Whether it's the stock market, your company retirement account or even a savings account. All of these have risks. The trick is to minimize the risk as much as you can before you make the investment. Our course will help you do that.

  • How do I find borrowers?

    We recommend that you work with professional private mortgage brokers. It should not cost you any money to do so. Their job is to bring legitimate borrowers to the table and to help you evaluate the potential loan and the property. However, we still recommend you do your own analysis. Never rely on anyone else to do this for you. it's your money and your responsibility. We can show you how.


  • Amy Farrow

    Amy Farrow

    Amy is an attorney and real estate investor in Wisconsin. She has handled hundreds of closings, rehabbed properties, helped private lenders fund transactions and litigated many complex legal disputes. As a lawyer for over twenty-two years, and an investor for over seventeen years, Amy has the knowledge and experience to help both new and experienced private lenders become lending professionals.
  • Matt  Hedstrom

    Matt Hedstrom

    Matt Hedstrom owns and manages multiple businesses between Milwaukee and Chicago. He has created these businesses with a vision to serve and elevate others with core values centered in honesty and integrity. With over 20 years in real estate and contracting experience there isn’t a problem that Matt can’t find a solution for. His unique knowledge, contacts, and experience are all put to work helping him find the best solution for his clients.

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