Real Life of a Private Lender - Should I Start this Thread? Your opinion needed

45 Replies

My private lender and I decided to pool our resources together and we're putting up a private lending company. 

Our goal is to ultimately put up a HEDGE FUND focused on lending money to real estate investors. 

As my forum thread - the Real Life of a Real Estate Investor (here's the LINK) is quite helpful to BP Nation, I was wondering if starting another forum thread - "Real Life of a Private Lender" will be equally helpful.

I can see the benefits this will provide to the BP Community are as follows:

1) BP members will understand how a private lender thinks (psychology of lending money and what lenders regard as "risks")

2) BP members will see why some deals get funded and some deals don't get funded (is it a DEAL or NO DEAL?)

3) BP members will see why some borrowers don't get funded and how you can AVOID their mistakes (of course, I will not share sensitive info about my borrowers - NO names and contact info will be shared); and

4) BP members will understand HOW TO RAISE CAPITAL (do you know that private lenders also lend other people's money, not just their own?) - BP members will also learn what you can and can NOT do when raising money.

I always get the complain that it's so hard to raise money. My hope is this new forum thread will help educate BP Nation on how a private lender thinks so raising money becomes easier for your real estate deals.

If you think a Real Life of a Private Lender forum thread will be good, then reply with a YES. If I get 20 or more YES's then I will start this forum thread. If not, I will keep my money lending and capital-raising "secrets" to myself :-)

Wendell

P.S. You might be wondering why am I willing to share these "secrets"? Well...my Real Life of a Real Estate Investor forum thread was helpful in my business as it helped me attract buyers, sellers, lenders and investors. My estimate is that my Real Life of a Real Estate Investor forum thread has a $100K contribution to my profit in the past 37 weeks (so that's like making over $2700 every time I post my weekly business updates!). So, my hope is that my Real Life of a Private Lender will also help make my private lending business more successful while helping the BP Community at the same time. So, if you want an inside-look into the mind of a private lender, reply NOW with a simple "YES"!

Yes, please do.  I always borrow and like to see how you think from the other side of the table.

Yes please! My goal is to purchase my first investment property in a few months, and this could be invaluable to me.

--Jason

This post has been removed.

Yes. I think this a great idea. I am new to Real Estate investing and this is an area my wife and I were interested in possibly pursuing.

Yes!

And Wow this really sounds interesting. I would like to see the day to day of how to build it into a hedge fund as well. Thank you for documenting your work. I look forward to seeing all of it. 

yes, always interested in this topic

yes but only if you lend in ga!  :)

@Cal C.  

  need a license in GA... were wendel is at in IL commercial purpose loans do not need NMLS many states require NMLS so this information as presented by him will be state specific... check your state.

I think it will be helpful to know rates and term lengths of various private lending.

Originally posted by @Jay Hinrichs :

@Cal C. 

  need a license in GA... were wendel is at in IL commercial purpose loans do not need NMLS many states require NMLS so this information as presented by him will be state specific... check your state.

 I was joking!

So far I have read only 2 pages of your original post and have learn some new info.....can't wait to read on....

Yes, Yes, Yes, I want to follow and learn more about the why's of private lending....

BP is Fantastic......

I think it will be helpful to know rates and term lengths of various private lending.

Account Closed Finding money and understanding more about how to do that is one of the most posted topics on BP, so I think your post would be well received. 

However; #3 I'm sure will cause quite a bit of hesitancy with anyone wanting to submit deals to you, as BP is a very small community, and even if you don't use names, it's very likely we could figure out who the rejected borrower was, I'd rethink that if I were you. 

You might want to list your loan criteria, and give readers the reasoning behind it, etc. Such as how you decide on property types, what niches, regional areas you like, LTVs, Borrower criteria, etc. (How borrower vs. property is weighted). Good luck! 

Yes, please...

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