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This Non-Traditional Financing Solution Lends Money to People Rejected By Banks Want to buy an investment property, but don't qualify for a traditional loan? When banks say no, this lender says yes.

By Janet Gershen-Siegel

Opinions expressed by Entrepreneur contributors are their own.

Real estate investing is big money, but not everyone qualifies for loans from big banks and other traditional sources. Yet there are private lenders willing to lend money.

Private money is a way for entrepreneurs with bad personal credit to become small business owners and flip houses. This makes small business ownership more accessible to traditionally underserved communities, such as minorities, immigrants and refugees.

Private money lending is generally funded by investors, banks or both. Lenders take funds from private investors and make private business-purpose loans with those funds.