I'd like to become a private lender- Los Angeles mentors welcome!
Hi BP!
I recently purchased my first residential property, no financing. I purchased this as a rental property, and I am aiming to have it rent for $4000-$5000 a month. It should be ready in about a week for photos to be posted on rental sites through the property management company.
I live out of the country 50% of my time, which makes it increasingly difficult to have a normal job in the states. My goal is to keep up my traveling while having my money work for me- and not just sit in a bank. A nice cash flow.
I will be back in CA soon, and wanted to inquire about becoming a private lender for real estate investors in my area. I have $200,000.00 that I am working with.
Is this a good idea ? Are there better ideas for someone like me? Are you a seasoned private lender? How much money do private lenders start with? Is it wiser to split up the money into multiple investors ? How quickly are these private loans paid back- and at what rate usually? What happens when the buyer can't pay/ doesn't pay within the time? How do you find responsible investors who need private lenders?
All comments , advice , opinions , questions welcome!