The complete, plain-English guide to finding, structuring and succeeding with a money partner in the Australian market
Whether you have capital to deploy or deals to fund, money partnering is the strategy thousands of Australians are using to grow their property portfolios without needing a bank to say yes.
Why Australians are turning to money partnering
APRA's tighter lending rules mean the banks keep saying no to capable investors. Superannuation balances are sitting idle. And property prices have made the 20% deposit requirement nearly impossible without help.
Money partnering solves all three problems at once.
$1.1M+
Median Sydney house price
$3.5T
Superannuation pool in Australia
60%+
First-time investors blocked by access to capital
How a money partnering deal works
Every deal is different, but they all follow the same six steps
1
Identify
A renovation, flip, development, or buy-and-hold. The deal finder researches the deal and works out exactly how much capital is needed and for how long.
2
Approach
The deal finder presents the opportunity clearly — the return on offer, the timeline, and the security being provided.
4
Agree
Terms are captured in a formal written agreement: loan amount, interest rate, repayment schedule, and security.
3
Transfer
Capital moves directly to the solicitor's trust account via a Funds Direction Notice — full transparency, full paper trail.
5
Execute
The deal finder does the work. The money partner sits back and earns their return.
6
Repaid
Capital plus agreed interest or profit share is returned. Security is released. Deal closed.
Two parties. One powerful strategy.
Money partnering works because each party brings something the other lacks. Together, you complete deals neither could do alone.
| What the deal finder brings | What the money partner brings |
|---|---|
 Local property knowledge | The deposit or purchase funds |
Time to research and negotiate | Access to lending capacity |
Project management skills | A share of the risk |
Strategy and exit planning | Credibility with banks if needed |
Relationships with agents and trades | Patience for the investment timeline |
How money partnering compares to other investments
| Investment type | Typical annual return | Security | Liquidity | Effort required |
|---|---|---|---|---|
Bank term deposit | 4% to 5% | Government guaranteed up to $250k | High | Very low |
ASX shares | 6%–10% (historical avg) | None — price can go to zero | Very high | Low to medium |
Residential investment property | 6% to 10% (combined) | Title over physical asset | Very low | Medium to high |
Private money partnering* | 8% to 14% | First mortgage + personal guarantee | Low - term locked | Low (as money partner) |
Commercial property | 6% to 9% | Title over physical asset | Low | Medium |
Peer-to-peer lending | 5% to 10% | Varies - often unsecured | Medium | Low |
*Returns depend on deal quality, security, and structure. They are not guaranteed. Always seek independent financial advice.
6 common myths about money partnering debunked
You need to be wealthy to be a money partner
Most money partners start with $50,000 to $150,000. You don't need to be rich. You need capital sitting idle that could be working harder for you.
Money partnering is a grey area legally
When structured correctly with a solicitor, a Loan Agreement, and registered security, money partnering is a well-established and entirely legal activity in Australia.
Only desperate people use money partners
Many highly experienced investors use money partners as a strategic tool to scale faster, protect their borrowing capacity, or fund deals they couldn't do alone.
The money partner takes all the risk
In a well-structured deal, the money partner is the most protected party. They hold security over an asset and a personal guarantee. The deal finder carries more execution risk.
You need a financial licence to do this
For bilateral private lending for investment purposes, you generally do not need an Australian Credit Licence. See the Legal section for the full picture.
Returns of 8–14% are too good to be true
These returns reflect the risk premium for private lending versus a bank deposit. They are not guaranteed and depend entirely on deal quality and security.
Three ways money partners get paid
Fixed interest
The money partner lends a set amount and earns a fixed interest rate (typically 8%–14% pa) regardless of the deal outcome.
Best suited for: Short-term renovations, flips, and bridging situations.
Profit share
The money partner earns a percentage of net profit at the end of the deal rather than a fixed rate.
Best suited for: Longer developments where upside is harder to predict upfront.
Hybrid model
A lower fixed interest rate plus a share of profit. Balances security with upside for both parties.
Best suited for: Medium-term deals where both parties want skin in the game.
What types of deals work with money partnering?
Renovation flip
A property is purchased, improved, and sold within 6 to 18 months. Ideal for money partnering because the timeline is defined, the exit strategy is clear, and the value-add component reduces risk.
Returns: 9%–12% pa
LVR: 65%–75%
Terms: 6–18 months
Buy, renovate and hold
The property is improved and retained as a long-term rental. The money partner's funds bridge the gap between what the bank will lend and what the deal requires. Once renovated and revalued, the deal finder refinances through a bank to repay the money partner.
Returns: 8%–11% pa
LVR: 65%–75%
Terms: 12–24 months
Property development
Building new dwellings, subdividing land, or converting commercial properties. Private money partners often fund the deposit on a development site or bridge construction finance gaps. Hybrid return models are common.
Returns: 10%–14% pa + profit share
LVR: 60%–70%
Terms: 18–36 months
Bridging finance
Short-term capital for 30 to 90 days while waiting for another asset to settle or a bank loan to be processed.
Returns: 12%–18% pa
LVR: 60%–70%
Terms: 1–6 months
Commercial property
Purchasing and leasing commercial premises to business tenants. Tenant income often covers the money partner's interest payments. SMSF funds work particularly well here.
Returns: 9%–13% pa
LVR: 55%–65%
Terms: 12–36 months
Deal type comparison:
| Deal type | Typical term | Typical LVR | Typical return | Risk level |
|---|---|---|---|---|
Renovation flip | 6 to 18 months | 65% to 75% | 9% to 12% pa | Low to medium |
Buy, renovate, hold | 12 to 24 months | 65% to 75% | 8% to 11% pa | Low to medium |
Property development | 18 to 36 months | 60% to 70% | 10% to 14% pa + profit share | Medium to high |
Bridging finance | 1 to 6 months | 60% to 70% | 12% to 18% pa | Low (if asset is solid) |
Commercial property | 12 to 36 months | 55% to 65% | 9% to 13% pa | Medium |
Every money partnering deal requires three documents
These three documents work together as a system. Never use one without the others.
The Loan Agreement
The master document. Sets out: loan amount, interest rate, repayment schedule, loan term, what constitutes a default, and what happens when one occurs. A good Loan Agreement also covers less obvious scenarios — what if the property takes longer to sell? What if the deal finder becomes seriously ill? A standard internet template will not cover these. Always use a qualified property solicitor.
The Personal Guarantee
A separate document where the deal finder personally guarantees the debt. This means the money partner can pursue the individual personally — not just the company or the asset — if the loan is not repaid. For the deal finder, signing a personal guarantee should prompt a serious and honest evaluation of the deal.
The Funds Direction Notice
Specifies exactly where the money partner's capital is to go when transferred — to the conveyancing solicitor's trust account, the builder, or another agreed destination. This creates transparency and a clear paper trail, reducing the risk of funds being misappropriated.
How is the Money Partner Protected?
First mortgage or caveat
The money partner's interest is registered on the title of the property, giving them a legal claim over the asset if anything goes wrong.
Personal guarantee
The deal finder personally guarantees the debt - the money partner can pursue them personally if the deal does not repay as agreed.
Loan agreement
A legally binding contract sets out every term of the arrangement, including what happens in a default scenario.
Loan-to-value ratio (LVR)
Most prudent money partners lend no more than 70% of the property's value, providing a buffer if the asset needs to be sold to recover funds.
A real Australian deal and how the numbers worked
| Deal detail | Figures |
|---|---|
Property purchase price | $450,000 |
Renovation budget | $40,000 |
Total capital needed | $490,000 |
Money partner contribution | $150,000 (deposit + renovation costs) |
Bank loan (in deal finder's name) | $340,000 |
Agreed return for money partner | 10% per annum for 12 months |
Money partner earns | $15,000 interest |
Property sold after renovation | $580,000 |
Deal finder profit (after all costs) | Approximately $47,000 |
The money partner took on relatively low risk — secured by a first mortgage and a personal guarantee — and earned a 10% return in 12 months. The deal finder earned their profit by doing the work. Both parties won.
Where Australians find money partner
The best money partners rarely advertise themselves publicly. They are found through networks, referrals, and consistent relationship-building over time. Here is where to look.
Personal and professional networks
Many of the best arrangements happen between people who already have a relationship — a family member with super to invest, a colleague with a redundancy payout, or a retired professional wanting better returns than a term deposit.
Property investor groups and associations
Groups like PIPA, local REIN chapters, and state-based investor associations are where serious property investors gather.
Masterminds and mentoring groups
Paid property education programs often bring together deal finders and potential money partners. In a mastermind with 50 other investors, some are looking for deals to fund while others need capital
Online communities
Facebook groups like Australian Property Investors and forums like PropertyChat.com.au are active communities. These require careful due diligence since you can't always verify who you're dealing with online.
Referrals from solicitors and accountants
Professionals who work with property investors often know both deal finders and potential money partners. A warm referral from a trusted adviser is worth ten cold approaches.
Red flags: when to walk away
| Red flags for MONEY PARTNERS |
|---|
 Deal finder is vague about where the money will go or refuses to provide a Funds Direction Notice |
 They discourage you from getting independent legal advice |
Projected returns seem unusually high with no clear explanation |
They cannot explain what happens if the deal goes wrong |
Reluctant to provide references from previous money partners |
Wants funds transferred to a personal account (not trust or solicitor account) |
Pressure to decide quickly — 'the deal is about to close' |
| Red flags for DEAL FINDERS |
|---|
Claims to have funds but cannot provide proof in a reasonable timeframe |
Hints that the funds are borrowed from another source (chain of debt) |
Wants to be actively involved in managing the property beyond their role as lender |
Seeking equity in the property rather than a lending arrangement |
Pattern of disputes or legal action from previous investments |
Cannot confirm whether funds are from SMSF, personal savings, or another source |