Newbie with reservations! Comments welcome

[Paul Gage]

I am a Newbie (sort of) from High Point, NC.  Ran manufacturing businesses for 30 years and did fairly well.   "Semi-retired" and looking to put some cash to work.   While I got really excited about real estate at first, I am finding that the returns come with a great deal of work and when you consider the time needed to be successful, I am not sure it is worth it.   I am actually more intrigued lending hard money as this seems to be more lucrative with less hassle.   Would love to "buy and hold" or flip some properties, but can't really make the numbers work when considering the time it takes to manage this.  I don't want another job with headaches like poor tenants (I have read the books about how to get good tenants, but this is not fool proof) and mtc. problems.  Comments would be welcomed.   

[Fred T.]

Money lending is the easiest thing to do, you simply stroke a check. 

You should be well versed in all aspects of the Real Estate and Mortgage Industry before you invest in someone else's deals. It's all about preservation of wealth and assessing risks that meet your tolerance levels.

Be sure to do your homework on the Sponsor (Investor/Developer) as well as the Deal itself prior to funding the deal.

Finally, there are some arrangements related to money lending as follows:

Debt Only, Debt+Equity and Equity Only

You will want to research each arrangement as it's related to your Taxes, Estate Planning, Return Expectations, Risk Tolerance, etc. and choose the best fit(s).

You should also have a Team around you like: CPA, Attorney, Mortgage Banker, Real Estate Agent and General Contractor to name a few to assist you in Underwriting the Deal and executing the loan in a fashion best suited to you and your overall wealth generation needs.

My suggestion is that you play in the other 3 levels of Real Estate Investing before you venture into the 4th Level. This way, not only can you relate better to the Sponsor, but your expectations will be more realistic then they may be at this time. 

I'm sure you worked hard for that nest egg...now is the time to start hatching chicks and grow your Net-worth responsibly for generations to come.

Happy Investing!/