A private money broker (or private money lending broker) is a middleman who connects real estate investors or borrowers with private lenders offering short-term, asset-based loans, often for deals that traditional banks won’t finance.
🔑 What a Private Money Broker Does:
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Sources capital from individual investors or private lending firms
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Matches borrowers (usually real estate investors) to the right lenders based on the deal
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Packages and presents deals to lenders (loan amount, property value, exit strategy)
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Earns a commission or fee (usually 1%–5% of the loan amount, called points)
🏡 Who Uses Private Money Brokers?
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Fix-and-flip investors
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Buy-and-hold investors who can’t qualify for traditional loans
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Builders or developers needing quick funding
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Anyone seeking hard money or non-bank financing
✔️ Benefits of Using a Broker:
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Access to multiple private lending sources
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Faster funding (brokers know which lenders close quickly)
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Guidance on structuring deals
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Helps investors who may not have direct lender relationships