What the Experts Warn Against When Using Private Money Lending

Is private money lending the next best way to invest? To the everyday landlord, home flipper, or once-in-a-while investor, private lending seems completely foreign. Why would you lend money when you can put it into your deals? And even if you wanted to, wouldn’t it take millions, or at least a few hundred thousand dollars to get started? Surprisingly, private money lending is available to more people than you think, and it could be your next way to make truly passive income.

Alex Breshears and Beth Johnson were neither millionaires nor active investors when they started lending private money. Over time, they realized that they had grown relationships with active real estate investors, many of which always needed funding for the next deal. While swinging hammers and painting baseboards may sound fun to active BRRRRers or flippers, to Alex and Beth, the passive income that came in from private money lending was even better.

They’re now so ingrained in the world of private money lending that they’ve written the newest BiggerPockets book, "Lend to Live", where they talk about how to build “hassle-free passive income” by lending private money. In this episode, they go over how a new investor can start lending, what to look out for in a lender when you need money for deals, and how even with a few thousand dollars, you too can start building truly passive income streams.

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Join BiggerPockets for FREE:
https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none
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Grab the New Book, “Lend to Live”:
https://store.biggerpockets.com/products/lend-to-live?utm_source=youtube&utm_medium=description&utm_campaign=none
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Why Private Money Lending is a Perfect Alternative to Active Investing:
https://www.biggerpockets.com/blog/private-money-lending-is-a-perfect-alternative?utm_source=youtube&utm_medium=description&utm_campaign=none
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The Perks & Process of Becoming a Private Lender:
https://www.biggerpockets.com/blog/private-lending-checklist?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Alex and Beth on BiggerPockets:
Alex: https://www.biggerpockets.com/users/alexatlend2live?utm_source=youtube&utm_medium=description&utm_campaign=none
Beth: https://www.biggerpockets.com/users/bethjohnson2021?utm_source=youtube&utm_medium=description&utm_campaign=none
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Get in Touch with Alex and Beth for Private Lending:
https://www.lend2live.com/
https://flynnfamilylending.com/
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Email Alex and Beth:
[email protected]
[email protected]
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Connect with Rob (Robuilt) on YouTube, Instagram, TikTok, and Twitter:
Youtube: https://www.youtube.com/c/Robuilt
Instagram: https://www.instagram.com/robuilt/
TikTok: https://www.tiktok.com/@robuilto
Twitter: https://mobile.twitter.com/robuiltchannel
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Connect with David and Rob on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/

Episode 642

Show notes at: https://www.biggerpockets.com/blog/real-estate-642?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
01:55 Quick Tip
03:57 Why is Private Money Becoming
06:47 What is Private Money Lending?
10:17 Lending to People vs. Properties
15:41 How to Start Lending Private Money
23:50 How to Protect Your Private Money
31:28 How to Vet a Private Money Lender
45:18 Famous Four

#biggerpockets #realesatepodcast #ep642