How to Buy Real Estate Without Banks (Private Money Lending)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 4 July 2025

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Can’t (or don’t want to) get a bank loan? We have another option for funding your real estate investments: private money lending! If your DTI (debt-to-income) is too high, you’ve maxed out how many mortgages you can get, or you need quick cash to finance a renovation, house flip, or BRRRR (buy, rehab, rent, refinance, repeat), private money loans can float you. Today, we’re sharing how to find a private money lender, what interest rates they charge, who these loans are best suited for, and what documents to bring to get approved. Dave is out on a search to find the perfect pickle for his sandwich, so we brought in a seasoned investor and trusted Real Estate Rookie host, Ashley Kehr. Today, she’s invited her private money lender, James Dainard, to the show to explain how private money works, how much money you’ll need to put down, rates and terms you can expect, and red flags a lender looks for. But this isn’t just for borrowers. If you’ve got a serious sum of cash and want to lend to investors and pocket the interest payment, James will show you how. Plus, Ashley shares her exact private money lending structure that she worked out with James on a recent deal he lent to her. No bank loan? No problem—here’s how private money works! In This Episode We Cover Private money explained, who should use it, and which investment properties it works best for Interest rates and mortgage points you’ll pay with private money loans Ashley’s actual recent private money loan broken down with her lender (James!) What lenders look for in a borrower and the exact documents you should bring to a lender Private money vs. real estate partnerships: which works best for which investors? And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1143 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	If you're low on cash and your DTI is maxed out, there is another option to grow your real estate investing business, private money.
0:09.0	I know it can sound intimidating or expensive, but private money is one of the most powerful tools available to investors if you use it safely.
0:18.4	Today, we'll explain how.
0:21.6	Thank you. if you use it safely. Today we'll explain how.
0:30.7	Hey everyone, I'm Ashley Care filling in for Dave Meyer today as guest host of the Bigger Pockets Real Estate podcast. Today, I'm going to bring you all inside a private money deal
0:36.4	to explain how it works and how you can
0:39.2	use it to scale your portfolio. And I'm bringing on one of my favorite lenders to help me do it.
0:45.7	I think you'll recognize him because it's James Dainard. James, welcome back to the show.
0:51.4	How you always just hit me up for money? You like treat me like an ATM now.
0:54.5	It is great having a sugar daddy.
0:56.0	I will say that.
0:57.3	So James and I are going to break down all the details of a recent lending deal we did together
1:02.4	with full transparency about our numbers.
1:05.2	You'll get to hear what makes a strong lending partnership from both sides of a deal.
1:09.8	Typical interest rates to expect how both
1:12.4	borrowers and lenders can avoid some of the common red flags and so much more. So James,
1:18.3	let's jump right into this topic. Hey, everyone, it's Dave. Before we get into the show, I wanted to
1:24.1	let you know about something really fun, Henry and I are doing that I am
1:27.8	really excited about. We are taking Bigger Pockets on the road this summer, and we'll be
1:33.6	driving around the Midwest to multiple different markets, looking for deals, meeting with
1:38.6	agents, talking to the Bigger Pockets community, attending meetups, it's going to be a great time.
1:44.8	We're calling it the Cash Flow Road Show, and it's happening this July, from July 14th to 18th, across three
	...

Transcript will be available on the free plan in 18 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.