Private money lending is when individuals lend their own capital to other investors or professionally managed real estate funds, while securing said loan with a mortgage against real estate. Essentially, private money lending serves as an alternative to traditional lending institutions, like big banks.
What Is Private Lending?
A private lender is an individual who provides money for real estate investments. The money can be used to purchase residential, commercial or rental real estate or to supplement funds to cover down payments or renovation costs.