Become a private money lender on real estate deals
Fund one house at a time, secured by a recorded mortgage and title insurance. BAM Home Buyers has bought houses since 2006, and private lenders help us close quickly for homeowners who need to sell as-is.
- One lender per deal, no pooled funds
- Recorded mortgage and title insurance
- Self-directed IRAs welcome
What is a private money lender in real estate?
A private money lender is an individual who lends their own money, or money from a self-directed IRA, to a real estate buyer. The loan is secured by the property itself through a promissory note and a recorded mortgage. The lender is repaid on the terms written into the note.
With BAM, every loan funds one specific house for one lender. You see the property and the numbers before you decide, and you’re never pooled with other lenders.
How to become a private money lender with BAM
- Tell us about yourself. Fill out the short form below. It takes about two minutes and commits you to nothing.
- We talk first. We call to learn what you’re looking for and answer your questions. We only share deals with lenders we’ve spoken with and approved.
- See deals that need funding. Once you’re approved, we email you current deals, and they’re also available to you on our website. You sign in with just your email: we send a one-time link, no password to remember.
- Fund one deal. If a deal fits, you’re the only lender on it. The loan is documented with a promissory note and a recorded mortgage, and you get a title insurance policy.
- Get repaid. Payment terms and the payoff date are agreed for each deal and written into the note before closing.
A real estate buyer with a long track record
- 20+ years buying houses. We’ve been in business since 2006.
- 500+ houses purchased. We know what houses cost to buy, repair and sell.
- 120+ five-star ratings from homeowners we’ve worked with. Read our reviews.
- One lender per deal. No pooled funds. You know exactly which property secures your loan.
- We show the math. Each deal comes with the purchase price, repair estimate and our plan for the property, so you can make your own call.
Want to know more about who we are? See about BAM Home Buyers and how we buy houses.
What a private loan with BAM looks like
| Typical loan size | $75,000 to $750,000, and some deals go above that |
|---|---|
| Security | Promissory note and a mortgage recorded on the property |
| Protection | Title insurance policy |
| Rate and term | Set for each deal and discussed privately, unless already listed on that deal |
| Funds | Cash or a self-directed IRA |
| Where we buy | Across the U.S., with most Chicagoland deals in the south and southwest suburbs |
Private money lending vs. owning a rental
Both put your money into real estate, but the work and the risk look different.
| Private lending | Owning a rental | |
|---|---|---|
| Tenants and repairs | None. The borrower handles the property. | Yours to manage, or pay someone to |
| What you hold | A note and a recorded mortgage | The deed to the property |
| How long | A set term written into the note | Open-ended, until you sell |
| Your upside | The interest and terms in the note | Rent and any rise in value |
| If things go wrong | Your rights come from the mortgage and loan documents | You carry vacancies, repairs and price swings |
Lending from a self-directed IRA
A self-directed IRA can hold a real estate loan, so you can be a private money lender with retirement funds. Your IRA custodian sends the funds at closing and holds the note for your account, and payments go back into the IRA. Custodians have their own paperwork and timing, so tell us early if you plan to lend this way.
Talk with your custodian and tax professional about the rules that apply to you. The SEC’s investor education site has guidance on self-directed IRAs.
What every private money lender should weigh
Every loan carries risk, including loss of principal. Home values can fall, repairs can cost more than planned, and a sale can take longer than expected. If a loan isn’t repaid, enforcing a mortgage takes time and follows each state’s rules.
Here’s how we set up each loan to protect you: a recorded mortgage on the specific property, a title insurance policy, one lender per deal so nothing is shared, and repair estimates from a team that has bought more than 500 houses. Review each deal yourself and talk with your own financial, tax and legal advisors.
Private lending opportunities across the U.S.
We buy houses in more than 30 metro areas, from Chicagoland to Dallas, Phoenix, Atlanta and Southern California. If you want to become a private money lender in Chicago, most of our Chicagoland deals come from the south and southwest suburbs. See the markets where we buy houses.
Private lending FAQ
How do I become a private lender with BAM?
Fill out the form on this page. We’ll call to get to know you, and once you’re approved you’ll get current deals by email and on our website.
Is my money pooled with other lenders?
No. Each loan funds one property for one lender.
How much can I lend?
A typical deal needs $75,000 to $750,000, and some go above that. You choose which deals to fund.
Can I fund more than one deal?
Yes. Each loan is its own deal with its own note and mortgage, so you can fund several, one property at a time.
Can I lend from a self-directed IRA?
Yes. Loans can be funded through a self-directed IRA. Your IRA custodian funds the loan and holds the note for your account.
What secures my loan?
A promissory note and a mortgage recorded on the property, plus a title insurance policy. The loan documents spell out your rights if the loan isn’t repaid as agreed.
What are the rates and terms?
They depend on the deal. We go over them with you privately, and some deals list them up front.
How do I see current deals?
Once you’re approved, we email you current deals, and they’re also available to you on our website. You sign in with just your email address and a one-time link.
Is private lending safe?
No investment is risk-free. Your loan is secured by the property and backed by title insurance, but values, repair costs and timelines can change. Read each deal closely and talk with your own advisors.
Join our private lender list
Tell us a little about yourself and we’ll reach out to set up a call. Prefer to talk now? Call (312) 818-3954.
This page is general information only and is not an offer to sell, or a solicitation of an offer to buy, any security. Any loan is made only through signed loan documents. Every loan carries risk, including loss of principal. Talk with your own financial, tax and legal advisors before lending.