getting involved in private money lending

[John Jasko]

How does one get involved in private money lending?  

[Chris Seveney]

Quote from @John Jasko:

Quote from @Account Closed:

Quote from @John Jasko:

How does one get involved in private money lending?  

 That depends on the state you are in, the amount you lend, the number of times a year you lend, what your goals are, etc.

DM me for more details

In WV.  I have capital but I’m not sure I have the extra time to dedicate to managing a rental property.  I am considering lending as a way to get in the game and assist others.

To be in private lending, you will want to go to some local REIA events and let people know you would consider private lending. If someone were to approach, you will want to analyze not only the deal as if it were one of your own, but also the sponsor. You will want to know their track record, have them show you prior deals, including loans they have taken so you can call those lenders to see if they paid it back. Run a background check etc. Always make sure they also have skin in the game.

Other option would be to invest in yield based syndications, which are similar to private lending as you get interest only payments back monthly, do not have to worry about finding the deal, and the returns are very similar or better if the sponsor structured the offering in ways that could provide tax preferential treatment (dividend vs. ordinary income).