Getting into private lender

8 Replies

Hi,

I'm starting out and trying to diversify.  I have some good funds saved up and looking into private lending.  I appreciate any thoughts on how to get it going?

Thanks,

Stan

go to local REIA type meetups talk to flippers and let them know your interested in lending.. pretty simple.

use a lot of caution though as you start out.

Originally posted by @Jay Hinrichs :

go to local REIA type meetups talk to flippers and let them know your interested in lending.. pretty simple.

use a lot of caution though as you start out.

 Thanks!  What kind of contract, risk assessment that I should do, mostly to protect myself from losing the funds?  I'm being curious as well on the typical rate you would get being a private lender?

@Chris Seveney   Chris is someone  U may want to talk with I believe he will let you invest along side him and that is a great way to get some experience without taking on untold risk.. 

@Bob Malecki   has a fund ( not sure if its accredited or not) but they are in the business of managing debt instruments.

So maybe you check into these two as some sort of alternativeto get some experience.

the BP is full of threads of beginner lenders asking for help after the fact.. 

its not super complicated but experience matters when it comes to lending.. its not like buying a rental home and sticking a tenant in it.. anyone can grasp those concepts.

Originally posted by @Jay Hinrichs :

@Chris Seveney   Chris is someone  U may want to talk with I believe he will let you invest along side him and that is a great way to get some experience without taking on untold risk.. 

@Bob Malecki   has a fund ( not sure if its accredited or not) but they are in the business of managing debt instruments.

So maybe you check into these two as some sort of alternativeto get some experience.

the BP is full of threads of beginner lenders asking for help after the fact.. 

its not super complicated but experience matters when it comes to lending.. its not like buying a rental home and sticking a tenant in it.. anyone can grasp those concepts.

 Thanks!

@Stanley Nguyen Hey Stanley, Usually you can go to REIA's in San Jose and see if you can find someone who accepts private money lending. For risk assessment, you must be able to read all the numbers and see if the deal is risky or not. Next, you look at the operator and assess if they can do the operations on the deal or not. Typical interest rate is around 10% interest from what I see. Keep in mind Usury Laws.

Originally posted by @Bob Malecki :

Hi @Jay Hinrichs our fund is available to sophisticated as well as accredited, thanks for the mention. 

Is Sophisticated a new threshold  created by the JOBs act.  not familiar with it.  But would be great to allow more folks into these deals that are not quite there on the accredited investor qualifications..