Private money lending is a real estate financing strategy where individuals or private companies fund loans secured by real property. It serves as an alternative to bank loans, offering fast access to capital with fewer restrictions. This type of lending benefits both borrowers—who gain speed and flexibility—and lenders—who earn solid returns backed by physical assets. Private money is especially useful for fix and flip projects, land purchases, and unconventional properties. Terms vary widely, so clear agreements and due diligence are essential. It’s a powerful tool for real estate investors and a popular wealth-building strategy for private lenders.