Private Money Loans for Real Estate Investors
Private money loans give real estate investors a non-bank way to finance investment property. SpaceCoast Unlimited is a loan broker based in Melbourne, Florida, working with investors nationwide. We don't lend our own money. We review your deal and connect you with private lenders whose criteria may fit it.
Private money is one of the loan types we broker, alongside hard money, DSCR, and ground-up construction loans. Here's how it works, how it compares to hard money, and how to request a quote.
What is a private money loan?
A private money loan is investment-property financing that comes from private individuals or private lending companies rather than a bank or credit union.
Because private lenders set their own guidelines, they may be more flexible than traditional lenders about the property, the timeline, or the structure of the deal. That flexibility is the main reason investors look for private money. It also means terms can vary widely from one lender to the next.
Private money loans are business-purpose only. They're for investment properties, not a home you plan to live in.
Looking for a private money lender? How our broker service works
If you searched for a "private money lender," you're probably looking for someone who can review your deal quickly and give you a straight answer. Here's how a broker helps.
Finding private lenders on your own can take a lot of calls, and every lender has different appetites for property types, locations, and deal sizes. We do that legwork for you:
- We review your deal: the property, the numbers, your experience, and your exit plan.
- We introduce it to private lenders we work with whose published guidelines may fit.
- We help you compare the options that come back, so you understand the tradeoffs.
We don't fund loans or make credit decisions. Private lenders set all terms, and they decide whether to move forward.
Private money vs. hard money: what's the difference?
Investors often use "private money" and "hard money" interchangeably, and there's real overlap. Both are non-bank, business-purpose loans that tend to focus on the property and the deal. The differences are mostly about who the lender is and how standardized the program is.
| Private money | Hard money | |
|---|---|---|
| Who lends | Private individuals or private lending companies | Lending companies that specialize in asset-based loans |
| Guidelines | Set by each private lender; can vary widely | Often more standardized programs |
| Main focus | The deal, the property, and the lender's own criteria | The property and the deal, such as value, rehab budget, and after-repair value |
| Common uses | Purchase, rehab, new builds | Purchase, rehab, fix & flip |
| Terms | Vary by lender, property, borrower, and market | Vary by lender, property, borrower, and market |
Want more on the hard money side? See our hard money loans page.
Common ways investors use private money
Purchase and rehab
Many investors use private money to buy a property that needs work and fund the renovation. Lenders typically look at the purchase price, rehab budget, and after-repair value. Compare with hard money loans, which are built for the same kind of project.
Ground-up builds
Some private lenders finance new construction, such as spec homes or build-to-rent projects on a lot. Expect a close look at plans, budget, timeline, and the builder. See ground-up construction loans for more.
Short-term hold before a DSCR refinance
Investors sometimes use private money to buy and stabilize a rental, then refinance into a longer-term DSCR loan once the property is rented. This is a common step in the BRRRR strategy. Whether the refinance works depends on the DSCR lender, the property, and your file.
What private lenders typically look at
Every private lender has its own criteria, but these are the factors that commonly come up:
- Property value and after-repair value (ARV): what the property is worth today and after improvements.
- Deal numbers: purchase price, rehab or construction budget, and projected costs.
- Exit strategy: how you plan to pay off the loan, whether by selling, refinancing, or another plan.
- Experience: your track record with similar projects. Some private lenders also work with newer investors.
- Entity: many private lenders lend to an LLC or other business entity.
- Liquidity: cash or reserves available for the down payment, closing costs, and surprises.
Requirements vary by lender, property, borrower, market, and documentation.
How to request a private money quote
- Tell us about your deal. Share the property address, purchase price, rehab budget, ARV, your completed flips or experience, and an estimated credit score through our quote form.
- We review it. We compare your scenario with the guidelines of private lenders we work with.
- A lender issues terms. If a lender is interested, it provides its own terms.
- You decide and close with the lender. The loan closes directly with the lender.
Private money in Brevard and Central Florida
Our home base is Melbourne, and we know the Space Coast and Central Florida markets well. If your deal is local, visit our pages for Brevard County, Melbourne, Palm Bay, and Orlando. Investing somewhere else? We work with investors nationwide, so send us the deal. See all service areas.
Private money loan FAQs
Is private money the same as hard money?
They overlap a lot. Both are non-bank, business-purpose loans that often focus on the property. Private money can come from individuals or private companies with their own guidelines, while hard money usually refers to lending companies with set programs.
Who are private money lenders?
Private money lenders can be private individuals, groups of investors, or private lending companies that finance real estate investment deals outside the banking system.
Can I get a private money loan for a primary residence?
No. The loans we help investors find are business-purpose loans for investment property only.
What do private lenders look at when they review a deal?
Commonly the property's value and after-repair value, the deal numbers, your exit strategy, your experience, your entity, and your liquidity. Each lender weighs these differently.
How fast can a private money loan close?
It depends on the lender, the property, and how quickly documents, title, and any appraisal come together. Share your timeline with us up front so we can look for lenders whose process may fit.
Does SpaceCoast Unlimited lend its own money?
No. SpaceCoast Unlimited is a loan broker, not a lender. Private lenders fund the loans and make all credit decisions. SpaceCoast Unlimited does not pull credit. Lenders may run a soft credit inquiry to provide a quote, which does not affect your credit score.
Can I refinance out of a private money loan with a DSCR loan?
Often, yes, if the property is a rental. Many investors refinance into a DSCR loan once the property is renovated and rented. Eligibility depends on the DSCR lender and the property.
Related loan programs
- Hard Money Loans: purchase and rehab financing
- DSCR Loans: long-term rental financing
- Ground-Up Construction Loans: new build financing
- All Loan Programs
Ready to talk about your deal? Request a free quote · Call 321-499-2652 · Follow us on Facebook
SpaceCoast Unlimited LLC · Mailing address: 4880 Stack Blvd Ste E6 #806, Melbourne, FL 32901 · 321-499-2652 · tommy@spacecoastunlimited.com · Mon–Fri 8am–5pm ET.
SpaceCoast Unlimited, LLC is a loan broker, not a lender. We do not fund loans, extend credit, or make credit decisions. All loans are made by independent third-party lenders and are subject to lender approval, terms and conditions. Business-purpose loans for real estate investors only; we do not offer consumer or owner-occupied residential loans. See our full Disclaimer.
SpaceCoast Unlimited is a loan broker, not a lender. All loans subject to lender approval. Business-purpose loans only.