Unlocking Financial Freedom: Why Hard Money and Real Estate Investment Loan Brokering is a Great Side Hustle

By Douglas Katz – 09/28/2023

Are you dreaming of a side hustle that offers flexibility, lucrative earning potential, and low entry barriers? Look no further than hard money and real estate investment loan brokering. This exciting field not only provides these advantages but also allows you to leverage existing relationships, scale it into a full-time gig, and even grow your business alongside personal real estate investing. However, it’s crucial to approach this opportunity with care, choosing the right platform for the highest probability of success.

Multiple Benefits

Hard money and real estate investment loan brokering opens doors to a world of opportunity. From the flexibility that adapts seamlessly to diverse lifestyles to the immense earning potential that transcends traditional salary constraints, loan brokering offers a unique blend of advantages and benefits.


One of the standout benefits of hard money and real estate investment loan brokering is the flexibility it offers. Unlike traditional 9-to-5 jobs, you can set your own hours, work from anywhere, and even manage it alongside your current profession or commitments. Whether you’re a stay-at-home parent, a student, or a working professional, this side hustle can fit into your schedule like a glove.

Earning Potential

While the flexibility is fantastic, what truly excites people about this side hustle is the earning potential. As a loan broker, you earn commissions for connecting borrowers with lenders. These commissions can be quite substantial, especially when brokering loans for large real estate deals. Your income isn’t limited by a fixed salary; it’s driven by your efforts and the deals you close.

Low Barrier to Entry

Getting started as a loan broker is relatively easy, making it an attractive option for those looking to dip their toes into the real estate world. Not only do you not need a college degree or a vast amount of capital to start. you will not be required to pass any tests, achieve any certifications or earn any licenses. A passion for real estate, a solid work ethic, and some networking skills are often all you need to begin.

Leveraging Existing Relationships

If you’re already involved in the real estate industry as an agent, investor, or even a property manager, you have a significant advantage. Your existing relationships and knowledge of the market can help you jumpstart your loan brokering business. These connections can provide you with a steady stream of potential clients and lenders, giving you a head start in building your portfolio.

Your past relationships can and will add benefit, even if you are not a veteran of the real estate space.  Networks garnered in areas that touch investors like tax professionals or attorneys are also a treasure trove of business opportunity.  Even just a solid network of good relationships will help.  Everybody knows at least one person looking to get into or already actively investing.

Ability to Scale Up

What starts as a side hustle can quickly transform into a full-time career. As you gain experience and build your reputation, you’ll attract more clients and lenders. This growth potential allows you to scale up your business and eventually make it your primary source of income, providing financial stability and independence.  Once you have a happy client base giving you steady business, your business will grow based on the time you devote.

Synergy with Personal Real Estate Investing

Many lenders actively invest in real estate as their own side hustle. This is not a surprising as loan brokering complements personal real estate investing. As you broker loans for others, you’ll gain valuable insights into the industry, learning about market trends, financing strategies, and property evaluation. This knowledge can significantly benefit your personal real estate investments, helping you make informed decisions and maximize your returns.  Additionally, you can do your own loans at a discount which makes financial sense.

The Road to Success

While the benefits of hard money and real estate investment loan brokering are clear, it’s essential to approach this side hustle correctly to ensure your success. Here’s how you can set yourself up for victory:

Choose the Right Platform

Selecting the right platform or company to work with is crucial. Research various loan brokering companies and evaluate their reputation, support, and commission structures.  If you are working with a single source, you will sink or swim based on their performance and loan programs.  Some companies specialize in specific types of loans or regions, so find one that aligns with your interests and expertise.

If your working with a broker shop, there are more considerations.  Remember there is no barrier to entry for brokers, so you need to look at the owners and evaluate their character and level of support. Some will give you the basics such as access to their sources, while others will invest in technology marketing support and training to make you better.  Even more critical is a good process that provides the best assurances that your loans will be handled in a manner to build confidence in you.  This business is about client experience and many will forgo better terms for certainty.

Training and Education

Invest in your education. Many loan brokering companies offer training programs to help you understand the intricacies of the business. Take advantage of these resources to build your knowledge and confidence, but also own your own destiny.

There are exceptional free online real estate investing communities and forums where you can expand your knowledge just by following threads that you find interesting.  There are also a myriad of meet-ups and in-person groups that would be happy to have you.  This also benefits your network. I would not necessarily solicit business within these groups.  In some it is frowned upon or even prohibited.  Be active and put yourself in situations where learning and helping are the intent and people will find out what you do and it will benefit you at some point.

Build Your Network

Networking is key to success in this field.  Your phone will not magically ring.  Remember, there are a lot of other lenders out there because they could jump in and sell right away.  You need to out-maneuver them with relationships.  As I covered in training and education, attend real estate events, join online forums, and connect with fellow professionals. Do not stop with real estate specific groups.  Chambers of commerce and general business networking groups are essential.  If you are targeting a specific group such as veterans, join and volunteer with veteran focused organizations.  Building a robust in-person network can open doors to more clients and lenders.

While the in-person aspect of your network should take priority, an online presence is also key.  Make sure that your online profiles reflect your ability to finance real estate investment properties and projects.  This engages your old network into your side hustle.  Join groups relevant to real estate and real estate investment, but also any groups with which you have an affinity to further build your network.  Affinity could be anything being a veteran to being a graduate of a particular school to an enthusiast of a particular hobby or pastime.

Marketing and Branding

While updating your profile(s) will build your network, it will not be enough to build your brand.  Create a strong online presence and brand yourself as a knowledgeable and trustworthy loan broker. If you are the business, a professional website and active social media profiles can go a long way in attracting clients and lenders.  If you are working with a broker shop, look for one that will provide you a landing page and who will create marketing material for your use.  Either way you go, your digital footprint will be key to clients vetting you before applying.

Legal and Administrative Considerations

While it just seems like making introductions in the context of money, running a loan brokering business goes well beyond that.  To do it right, there is a lot to manage.  Everything from technology to lender relationships to marketing need to be managed at a minimum level of competency for things to work.  The answer to whether you want to do it yourself or to work on someone else’s platform so that you can focus on growing your business.

Beyond the administrative is the legal.  If you are doing it yourself, you need to ensure that you understand the legal aspects of loan brokering in the areas that you will operate. You will need to comply with all licensing and regulatory requirements to avoid any legal issues down the road.  This should also be a determinant in how you approach the business.

Patience and Persistence

Building a successful loan brokering business takes time. There will be a lot of rejection and disappointments.  You will be furious with the persistent noise of scammers and bad actors who make it hard to win deals.  You will be incensed at clients who waste your time and use you for information or to shop.  This job is not for the faint of heart, but it is also very profitable.  Be patient, stay persistent, and keep refining your skills. Success may not come overnight, but with dedication, it will come.

Hard Money Ain’t Easy (But It Pays Well)

The world of hard money and real estate investment loan brokering isn’t just a side gig; it’s a pathway to financial freedom and personal satisfaction. The flexibility it offers means you can be the boss of your own schedule. Whether you’re an early riser or a night owl, you can make your work fit your life, not the other way around. This flexibility is especially valuable for parents, students, or anyone looking to boost their income. With each deal you close, you get closer to your financial goals, and there’s no cap on how much you can earn.

Moreover, the chance to grow your loan brokering business opens up a world of possibilities. What starts as a part-time hustle can turn into a full-blown career, freeing you from the constraints of a typical 9-to-5 job. As your network expands, you’ll become more confident navigating the real estate market. This expertise isn’t just beneficial for your brokering work; it also transforms you into a savvy investor. With your finger on the pulse of the real estate industry, your personal investments become more informed and potentially more profitable. So, why wait? Seize the opportunity to embark on this exciting journey toward financial freedom, where the rewards are limitless, and the only limits are the ones you set for yourself. Your financial future starts now.

Have an immediate need for investment real estate financing or just looking to be ready  when you find that perfect property?