What's in it for private lenders?

[Account Closed]

I'm not looking to get into private lending. A big reason is because I don't have that kind of money. I'm just wondering why people get into private lending. It seems like BRRR is where you make good money and get a lot of enjoyment from searching for and improving a home. So I am wondering, why people here like to do private lending over BRRRing?

[Martha Bueno]

George,

A lot of private money people have “day jobs” and buying properties, improving them, and managing them is a lot of work. Your money can go to work for you by lending it out to someone else for a %. Plus, if that person defaults they get the property as collateral, so it’s a nice deal either way.

Bottom line, not everyone is cut out to do the flipping, and there are many ways to make money. It’s like the gold rush story... more money was made selling the shovels than actually digging for gold.