Let’s Talk: Understanding How Private Money Works in Real Estate

[Felix Bamirin]

Hey everyone,

I’ve been seeing more investors lately trying to scale their real estate portfolios but running into one common challenge — funding. Traditional lenders have their place, but many successful investors use private money as a flexible alternative.

Private money lending is essentially relationship-based financing — where individuals or small groups fund deals based on trust, experience, and the property’s potential rather than just credit scores or bank rules. It’s helped a lot of investors move faster and seize opportunities that might otherwise slip away.

From my experience in the space, here are a few key things worth understanding:

✅ Private money isn’t “hard money” — terms and relationships are often more personal and negotiable.

✅ Transparency and communication are critical. Both parties need clarity on expectations and timelines.

✅ It’s not just about the deal — it’s about building mutual trust and consistent success.

I’d love to hear from others:

• Have you used private money before?
• What’s worked well (or not so well) in your experience?
• Any lessons learned about structuring deals or maintaining good lender-borrower relationships?

Let’s make this a helpful discussion for those exploring creative funding options in today’s market.

– Felix