The Rookie’s Guide to Finding Private Money for Your Next Property
The term “other people’s money” is common in the rental property industry. You may hear successful investors use it all the time—but what does it mean? Who are these “other people,” and why are they giving out money so freely? Don’t worry—rich relatives are not necessary for this episode of the Real Estate Rookie Podcast. We’re not talking about taking money from your Grandma. We’re talking about private money lending.
Who better to bring on to the show than Alex Breshears and Beth Johnson, authors of the new BiggerPockets book, Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending? Although tailored towards would-be passive private money lenders, Lend to Live drops some serious knowledge that the everyday investor can use. If you’ve ever wanted to know where to find private money, how it works, and how you can use it to grow your real estate portfolio, this episode is a great place to start.
Alex and Beth break down the fundamentals behind private money lending, what makes a great private money lender, and how to vet yours when accepting money. Private money can create phenomenal opportunities for active investors, but it comes with legal landmines that are easily activated if you don’t know what to look for. So, before you start accepting money from a local lender, be sure you read Lend to Live first!
In This Episode We Cover
What makes a great private money lender and the qualifications they should possess
Why become a private money lender and who private lending is best suited for
How to find private money even if you’re just starting to grow your network
Structuring a private money loan and keeping yourself legally protected
Private money red flags and what investors and lenders should look out for
Points, rates, and other lending lingo you need to know before taking a loan
And So Much More!
Links from the Show
Connect with Alex and Beth:
Check out the full show notes here: https://biggerpockets.com/blog/rookie-210
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