AskBP

#AskBP 065: How Can I Become a Private Money Lender?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Real Estate Investing Basics, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP
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How Can I Become a Private Money Lender?

On this episode of the #AskBP Podcast, Brandon explores the topic of becoming a private money lender, someone who lends capital for real estate deals. He shares the process for getting started, as well as the red flags to watch for when lending out your cash. Private lending can be incredibly lucrative and passive… but dangerous if not done right. If you ever plan to put your capital to work funding other people’s deals, don’t miss this show!

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather, and How to Invest in Real Estate, which he wrote alongside Joshua Dorkin. A life-long adventurer, Brandon (along with Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.

    Tek Chai from Podunk, Washington
    Replied almost 4 years ago
    Thanks Brandon for your beginners’ guide to private lending. If a real estate investor wants funding on a short-term loan to flip a property, at what number in the flipping calculator would you be concerned if the property posed a risk to your investment or should you care, if you are only a private lender. This may be a different situation, if you are partnering with him/her as a funding partner of the flipping deal of which you have 50% of the net profit when the property is sold. Also, what implication if you are placed as a second lien on the deed of the property as a private lender, in an event the real estate investor defaulted in his/her project.