If you want to know what it really means to be a private money lender, be the bank or simply access more information to enable you succeed in the market; this article is for you.
But, before we get into how to become a private money lender, let’s look at what Private money lending entails.
What is Private Money Lending?
Private money lending is a really great way to put your money to work and to grow your wealth. It simply means to decide to be the bank for individuals and businesses. So, instead of people going to the traditional banks to access a loan, they come to you.
It is usually up to the private money lender to set the terms of the loan and also to take precautionary measures to secure the investment. If you need more detailed guidance, give us a call at American Made Home Solutions.
How to become a Successful Private Money Lender for Beginners
Find a Funding Source
Before you start out, you’ll need to sort out where you’ll be getting money from. Unless you have a sizeable amount of money lying around, you might need to take out money from savings accounts and other sources.
Find a viable investment Opportunity
Even though you might not be an active investor, you’ll need to vet every investment opportunity and property before deciding to finance it. You’ll also need to look into the background of the investor to ensure that they’re as good as they claim. Looking for an investment opportunity? Click here to get help.
Decide on the Loan terms
Agree with the borrower on loan terms like interest rates, interest type, time for repayment of loan, etc. if you’re confused about how to go about this, free to consult us at American Made Home Solutions.
Set up Protections
Do not forget to set up protections and have an attorney draft and review the necessary paper work for the sake of both parties. Some of those protections include getting listed on the deed of trust, having a promissory note and getting insured on the property.
Are you ready to start your journey to success as a private money lender? We want you to succeed and we’ll be happy to guide you through the entire process, help you grow your portfolio and even diversify your investments. Simply contact us today, and we’ll walk you through the process step by step.
