What Is a Private Money Broker (and How Do They Get Paid)?
The role in plain English
A private money broker is a matchmaker between real estate investors who need funding and private lenders who provide it. Instead of lending their own money, brokers package a borrower's deal, present it to lenders in their network, and help move it toward closing.
How brokers get paid
Brokers typically earn a fee (often expressed in 'points') on the loan amount when a deal funds. On a $250,000 loan at a 1.5% broker fee, that's $3,750 per closed deal — and active brokers work multiple deals per month.
Do you need a license?
Requirements vary by state and loan type. Many private/business-purpose real estate loans don't require a mortgage-originator license the way consumer mortgages do. Always confirm the rules in your state — our training covers the compliance basics.
How to get started
The fastest path is to get trained on loan products, underwriting basics, and deal packaging, then plug into an existing lender network. Our free certification course does exactly that and gives you an access code to our private lender platform.