weird to approach an investor about being their private lender?

[Kellyn Cameron]

Hey everyone,

I was just curious if it would be weird for me to approach an investor that I know about being a potential private money lender for their flipping business. I went to high school with him and just recently discovered that he is flipping properties in my hometown and I really like what he is doing and would love to help fund future deals. Do I just reach out and tell him I am interested in being a private lender on a future flip and ask him to send me some more details about his portfolio?

Kellyn

[Rico Quatro]

My father once told me "Never loan money to friends; you risk losing both." Having said that, opportunities are everywhere.  Make sure you talk it over completely and in detail before loaning any $.  Make sure you are in a first-lien position, get proper paperwork drawn up by an attorney at a reputable title company.  Know what you are going to do when the property is sold.  Know what you are going to do if your "friend" doesn't pay.  Talk about interest rate, term, pymt amount, late fees, insurance, foreclosure. Ask your friend to show you paperwork from previous deals.  Have the hard conversations BEFORE investing.  Good luck.