How to become a private lender?

Question

Hello. I am exploring the option of becoming a private lender - would like to limit myself to local market. Where should I begin? Attend real estate meetups to connect with potential investors?

Thank you!

Alfath Ahmed · Answer

You can lend money in-state or out-of-state. Just make sure that person is someone you can trust them with your money. Their biggest responsibility is to make sure you are taken care of. You should always be paid first before they take any share for themselves.

Kenneth Garrett · Answer

@Vasudev Kirs

If you want to be a local private lender yes you should attend local REIA groups to network with flippers and BRRRR investors.

You’ll need to know how to identify deals that are worth investing in. It’s important to invest in the investor as much as the deal. You’re looking for someone who can execute the deal and find out when things go sideways on a deal how did they resolve it.

Always lend through a title company. Never give money to the investor direct. Secure your interest with a promissory not and mortgage or deed of trust depending on your state.

How to become a private lender?

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