Private lending. Where do I start?

[Jonathan Warner]

I've done a bit of research on the private lending space and I'm coming to the conclusion that it is the way I would like to enter the real estate space. I have significant enough assets and capital that I can make a few loans while still maintaining a healthy stock portfolio to keep my money working for me. 

I'm curious if you guys have any tips for me as a beginner. How do I get the ball rolling? 

Do I begin by getting a solid contract? 

Do I contact appraisers and local title insurance agencies to begin to find one that I could use? 

Or do I start by just getting my name out there and then get those pieces in place once I find a borrower? I'm assuming I should be somewhat prepared before doing this, as I don't want to come across as a "not serious" waste of time to any agents or borrowers.

Since I only want to lend locally, how do I get my name out there to start my search for borrowers?

Any advice would be greatly appreciated.

Thanks,

West

[Corby Goade]

I've got a few tips- like any other business, this is a relationship based thing. Get to real estate meetups and network with people out there doing deals. Here are a few high level thoughts for you as a beginner:

-Don't lend in second position

-Don't do deals with new investors

-Don't experiment with new strategies, even with experiences investors- ie, don't jump in to a first development project with someone just because they've flipped 20 houses. 

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly. They can help make sure your contracts reflect your equitable interest in the deal. 

-Vet contractors and builders that your clients want to work with. The trades can make or break a good deal. 

There are a billion more, but that's a start. 

Good luck!