Become a Private Money Broker

Becoming a private money broker is an incredibly rewarding role, acting as a matchmaker between investors in need of capital and private lenders searching for opportunities to lend.

This not only provides value to all parties involved, but also enables brokers to earn handsome fees from closings, with current averages ranging from $2,500 to $5,000, and often even higher. It’s important to note that loans are only available for non-owner occupied investment properties and must be made through a borrower entity.

Please be aware that the criteria outlined here is exclusively based on the state where the collateral property is located, rather than the state where the borrower is situated. This means that you can borrow for a deal in any “orange” state, even if the borrower/entity is carrying out the transaction remotely from a “grey” or “blue” state.

The states highlighted in grey are referral only, including Vermont, Minnesota, South Dakota, Utah, and Nevada.

Orange states provide opportunities for residential and commercial loans, with broker fees paid subject to final underwriting and compliance with applicable law. These states include Washington, Montana, Wyoming, Colorado, New Mexico, Texas, Oklahoma, Kansas, Nebraska, Iowa, Missouri, Arkansas, Louisiana, Mississippi, Tennessee, Illinois, Wisconsin, Indiana, Michigan, Kentucky, Virginia, West Virginia, Pennsylvania, Alabama, Georgia, South Carolina, Florida, Delaware, Washington DC, New Hampshire, Massachusetts, Connecticut, Rhode Island, Maryland, Alaska, and Hawaii.

Meanwhile, blue states only pay broker fees to individuals or entities that hold a valid active license issued by the state where the subject property is located. These states include New York, New Jersey, North Carolina, North Dakota, Idaho, Oregon, California, and Arizona. Please note that broker license requirements are based on the state where the subject property is located, rather than the state where the broker resides.

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