How to lend as a private investor?

[Nick Shri]

Fellow BPers,

I am looking to invest funds as a private investor. Here are my thoughts -

1. Provide funds towards a BRRRR deal as a partner, I invest, my friend brings the deal, rehabs the property, manages the property
2. I provide funds as HM, my friend borrows the funds and then returns after specific time frame
3. Where can I learn about becoming HM lender and or a partner/investor?

[Chris Mason]

There are companies that will pool your funds and underwrite the deals for a fee, so it's a little more passive, and not as high risk.

If you want to be more directly involved, just join any given real estate investing related webinar, state that you are a private lender looking to deploy capital, and you will be inundated with folks soliciting you to borrow money like it's the brain eating zombie apocalypse and you have a brain the size of Einstein's. You will have to undercut the ridiculous fees most hard money lenders charge by just a tad, or be willing to take just a tad more risks than them. The former is probably easier, since you have less overhead anyways.

There may be state licensing requirements, check into that.