Only few businesses are more lucrative than real estate development. However, getting funds is one of the biggest challenges faced by real estate developers—especially self-employed ones whose financial muscles aren't as strong as those of the big firms.

If you're single-handedly running a real estate development business and have a project at hand, you'll have virtually all odds up against you as regards getting funding.

Banks and other loan issuers would be reluctant to lend you money because to them you're not "big" or experienced enough. And the fact that you're self-employed would be seen as another red flag by most lenders.

But it's not a hopeless situation. Here are some smart ways to secure funding as a self-employed real estate developer.

1. Ask family and friends

Although many people aren't comfortable with this option, it remains one of the easiest ways to get funding for your next real estate development project. So, if you have a rich relative, feel free to approach them to back your project.

Most of the time, supportive relatives will give you some money as loan. In that case, you'll have to repay exactly what you borrowed. Less commonly, they'll practically invest in your project, expecting you to return the borrowed money alongside a proportionate share of profit you realize.

If you're able to secure funds from your relatives, be sure to confirm their payment terms and sign an agreement with them. This will come in handy if disagreements should arise later on.

2. Hire a specialist in freelance contractor mortgages

As a self-employed individual, you'll find it almost impossible to secure a mortgage or any other type of loan. This is because most banks and other loan issuers are concerned about your income, which is most likely unstable.

However, you can seek the assistance of a mortgage broker that specializes in securing mortgages and loans for self-employed professionals. This way, you're likely to have your request granted, especially if the broker has established a long term relationship with—and has generated huge business for—the lender.

By doing a simple web search, you'll find a good number of websites owned by reputable mortgage brokers who are vastly experienced in getting loans for self-employed contractors, developers, and other individuals. A good example is http://www.mortgages4.contractors.

3. Approach private investors

Virtually all private investors are aware that real estate development is really “juicy”. While many of them are willing to invest, they have no clues on how to go about it. If you approach such investors and pitch them your project development plan, you'll most likely win their backing.

It goes without saying, but most private investors will expect their money back after some time with a decent percentage of the profit. So, to get funding from them, you'll have to promise them irresistible returns on their investment.

If you're looking to get funds for your next real estate development project, try these commonly overlooked tips, and you'd most likely get what you need.