How do you start real estate private money lending with only $50,000? In this video, I break down exactly how I made my first private money loan and how I eventually grew from lending $50,000 to millions of dollars in real estate loans.
Learn more about ZIP Capital:
00:00 How to Start Private Money Lending With $50,000 00:29 How I Discovered Private Money Lending 02:07 Why I Chose Lending Over Rental Properties 03:19 My First $50,000 Real Estate Loan 04:13 How Much I Made on My First Loan 04:51 Direct Lender vs. Mortgage Broker 07:52 How to Find Your First Borrower 09:53 How Private Money Lenders Make Money 12:53 Why Investors Use Private Money Lenders 15:03 Why I Only Want First-Position Mortgages 16:00 Lending Yourself vs. Investing in a Fund 17:51 How to Protect Yourself as a Private Lender 18:16 Promissory Notes, Mortgages & Personal Guarantees 18:53 Property Insurance & Title Insurance 20:14 How I Underwrite Real Estate Loans 21:20 My 70% ARV Rule 21:29 Final Thoughts & Next Steps
Private money lending is a completely different way to invest in real estate. Instead of flipping houses or owning rental properties, you become the lender. You provide capital to real estate investors and secure the loan with real estate.
I walk through my experience starting with $50,000, how I find borrowers, how private money lenders make money through interest and fees, why I focus on short-term real estate loans, and how I think about protecting principal and managing risk.
I also cover some of the most important parts of real estate lending, including first-position mortgages, promissory notes, personal guarantees, property insurance, lender's title insurance, borrower underwriting, ARV, comparable sales, rehab budgets, and loan-to-value considerations.
If you're interested in private money lending, hard money lending, real estate investing, real estate loans, or becoming a private lender, this video gives you a behind-the-scenes look at how I personally got started.
This video is for educational and informational purposes only and should not be considered investment, legal, tax, or financial advice. Any discussion of ZIP Capital is intended to share my personal experiences building and operating the business. Past performance does not guarantee future results. Investments involve risk, including the possible loss of principal. Any investment opportunities discussed are available only to investors who meet applicable legal and regulatory requirements. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary.
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By: Zach Pasquariello - Bookkeeping Expert Title: How To Start Real Estate Private Money Lending With Only $50,000 Sourced From: www.youtube.com/watch?v=3oQiimDxyZ8
