--- title: Using Private Money Lenders To Get Money for Real Estate Deals description: A possible solution to the common difficulty of finding funds for your real estate deals is private individuals and/or hard money lenders. image: https://www.trustdeedcapital.com/hs-fs/file-16480518-png/images/private-money-lenders-real-estate-deals.png --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [Using Private Money Lenders To Get Money for Real Estate Deals](https://www.trustdeedcapital.com/blog/bid/137858/Using-Private-Money-Lenders-To-Get-Money-for-Real-Estate-Deals) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Tue, Nov 06, 2012 - [Tweet](https://twitter.com/share) ![private money lenders | real estate deals](https://www.trustdeedcapital.com/hs-fs/file-16480518-png/images/private-money-lenders-real-estate-deals.png?width=191&height=260&name=private-money-lenders-real-estate-deals.png)With the continuing recession in the real estate market and the general malaise in the economy, it remains difficult if not impossible to finance anything other than a traditional, single [family real estate transaction](https://www.trustdeedcapital.com/blog/bid/136395/Borrowing-Money-for-Your-Real-Estate-Investments). In fact, if you have less than stellar credit, banks are reluctant to finance those deals unless the loan is backed by a government guarantee. While this situation is problematic enough for the individual who wishes to purchase a home for themselves, it creates far more significant problems for the [real estate investor](https://www.trustdeedcapital.com/blog/bid/135517/4-Qualities-Successful-Real-Estate-Investors-Must-Have). One possible solution to this problem is the use of funds from private individuals and/or hard money lenders.  ## Hard Money Loans Individuals with the resources to make [private money loans](https://www.trustdeedcapital.com/blog/bid/133614/5-Qualities-Private-Money-Lenders-Must-Have) have the business acumen to understand and fund real estate deals that traditional lending institutions would never accept. While these individuals are willing to accept a certain amount of risk, they are also concerned with obtaining a proper rate of return for their risk and with securing the proper safeguards on their investment. [Hard money loans](https://www.trustdeedcapital.com/blog/bid/125301/10-Must-Knows-About-Hard-Money-Loans) accomplish these goals and provide much needed funds for borrowers with excellent but non-conventional real estate deals. ## Benefits In the simplest terms, private money lenders provide the following benefits to a real estate borrower:  ***Availability*** There are enormous amounts of capital in search of reasonably constructed real estate deals. Lenders are usually knowledgeable in [real estate transactions](https://www.trustdeedcapital.com/borrower-process/) and can actually bring more to the table than just money. ***Flexibility*** Similarly, lenders are aware of the constraints of business deals and can maneuver through most intricacies or details that would invalidate a traditional lending institution from making the loan. ***Security*** All of the normal loan activities and legal niceties that one finds in a traditional [real estate loan](https://www.trustdeedcapital.com/blog/bid/128515/7-Amazing-Tips-on-California-Real-Estate-Loans-Investing) are also observed with a hard money loan. These actions ensure that both parties are protected and that both live up to the obligations of the contract.** ** ***Affordability*** With all fees and transaction costs included, private money loans are competitive with traditional loans. Naturally, riskier deals will require a higher interest rate or a more lucrative payoff scheme but all of these items are negotiable unlike with a bank. ## Private Money Lenders The use of [private money loans](https://www.trustdeedcapital.com/loan-programs/) is the surest, most convenient and most affordable way to fund a commercial or otherwise complicated real estate deal. Private money is always ready, willing and able.   [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/8c1ed7f8-91e0-4490-af38-0396a430c3d6.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/8c1ed7f8-91e0-4490-af38-0396a430c3d6) ### Have Questions? 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