Resources for getting started with lending money

3 Replies

I have a small rental portfolio built with traditional mortgages.  I'm looking for smarter ways to fund future property acquisitions.  I have a buddy that has some money burning a hole in his pocket.  He has never done private money lending before.  What resources are out there for us to learn how to structure contracts so my buddy can act as the bank (hard money lender?) to loan money for my real estate deals and keep our friendship intact?

@Ben Schofield Suggest reading "Real Estate Note Investing" by Dave Van Horn. There is probably more information that needed to get started but Dave goes into every aspect of note investing there is. A little extra knowledge can't hurt.

Originally posted by @Ben Schofield :

I have a small rental portfolio built with traditional mortgages.  I'm looking for smarter ways to fund future property acquisitions.  I have a buddy that has some money burning a hole in his pocket.  He has never done private money lending before.  What resources are out there for us to learn how to structure contracts so my buddy can act as the bank (hard money lender?) to loan money for my real estate deals and keep our friendship intact?

 There are numerous crowd funding companies these days.  Check out Groundfloor and others.  I'm not advocating for them and have never used any of them, but they seem interesting and something that may work for your friend.