How to learn more about becoming a private money lender?

How to learn more about becoming a private money lender?

Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes

I'm looking into the possibility of working with a fix-and-flip investor to loan money on his projects, but I have never personally made any private money loans before. I'd like to educate myself more on the topic and basically learn what I need to look out for and how to properly secure my investment.

I tried searching the articles and posts for more information on the topic, but it seems like all the ones I found focus on how to GET private money.

Can anyone point me in the direction of an article, post, book, etc on where I should go to start learning about actually loaning out private money? I don't want to jump into it before educating myself on the ins and outs of this type of investing.

Thanks in advance for your suggestions/guidance.

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  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y
  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    13y
    Originally posted by Steve Babiak:

    LOL. Yes, they do. Thanks (as usual) Steve Babiak

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    13y

    How about any books on the subject? Does anyone have any recommendations? I saw a few online, but it's hard to know which ones are good or not. Sometimes it seems like the reviews are written by friends of the author. Maybe someone on BP has some personal experience with a book they'd care to recommend?

  • Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
    13y

    I've never actually found any that blew me away. I have read "Private Mortgage Investing" by Teri B Clark and Matthew Stewart Tabacchi.

    It focuses on residential mortgages, and was written in 2006, so the SAFE act and the real estate crash made much of this book obsolete.

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