For average investors, private money lending has been mentally squared away as “something mega-wealthy people do.” Most investors will write off lending money because they think they lack the experience or funds to do a successful deal. But what if we told you private money lending requires less money than you thought, that it’s almost completely passive, and that today’s high-interest-rate environment may be the perfect time to start?
Alex Breshears and Beth Johnson are graciously coming in as our private money messiahs, teaching us all how easy (and lucrative) it is to be a private money lender. They’ve been lending for years, not only to supplement their real estate portfolios but often to outright replace them. Private money is far more passive and flexible than performing a flip or BRRRR yourself, and almost anyone (and yes, we mean anyone) can do it in one way or another. It’s such a good way to make more money that Alex and Beth wrote the new BiggerPockets book, "Lend to Live," on this exact subject.
But before you print off business cards that say “private money expert” under your name, listen to what Alex and Beth have to say. They drop some valuable gems on who should (and shouldn’t) be a private money lender, how to protect yourself when you lend, points, rates, and fees you can charge, and building a pool of borrowers you can trust. If you’re anything like Scott and Mindy, then there’s a good chance you’ll walk away from this episode far more interested in private money than before!
~~~~ Grab the New Book, “Lend to Live”:
~~~~ Show Notes at:
~~~~ Join the BiggerPockets Money Facebook Group:
~~~~ Check Out Alex and Beth on The “BiggerPockets Real Estate Podcast”:
~~~~ Read Beth’s BiggerPockets Articles on Private Money Lending:
~~~~ Connect with Alex and Beth on BiggerPockets: Alex: Beth: ~~~~ Get in Touch with Alex and Beth for Private Lending:
~~~~ Email Alex and Beth: [email protected] [email protected] ~~~~ Want to Be a Guest on the BiggerPockets Money Show? Apply Here: Guests: Finance Friday: ~~~~ Connect with Scott and Mindy on BiggerPockets: Scott: Mindy:
Episode 328
00:00 Intro 05:12 Who Can Lend Private Money? 09:24 Lending vs. Active Investing 11:44 Is 2022 the Perfect Time to Become a Private Lender? 18:52 Private Money Points, Rates, and Laws 29:51Building Your Private Money Team 33:36 How Much Can You Make? 41:12 Vetting Potential Deals 46:45 Lending in The "Second" Position 53:12 Can You Sell Your Loan as a Note? 56:45 Finding Better Borrowers 01:01:50 Private Money vs. Hard Money 01:05:26 How to Start Lending 01:12:44 What if a Borrower Goes Bust? 01:19:24 Private Lending Red Flags 01:26:35 Becoming a "Passive" Private Money Lender 01:36:35 Grab Alex and Beth's New Book! 01:38:29 Ready to Start Lending?
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By: BiggerPockets Money Title: Want Serious Passive Income? Try Private Money Lending in 2022 Sourced From: www.youtube.com/watch?v=U-cB2IyqlY8
