Newbie is interested in teaming up with pro private lender

[Denis Davydenko]

I am from CA. Have some money sitting in my bank account and elsewhere. I have a full time job so being landlord will realistically yield only ~6% (if I am lucky). Hence I am looking into trying out private money lending thing.

I am a noob in that area, so I would be interested in teaming up with someone who is seasoned in that area. To the table I would bring money. I do understand that I have to bring something else - however I am not quite sure what that something else might be. So I am open for suggestions.

My goal here is. Well, there are actually two goals:

1. Learn from the pro how this is done

2. Make some money without same amount of hassle that being a landlord has

Also, if I am being naive - please do not hesitate to let me know that in your replies :)

[Karen Margrave]

Welcome to BP! We use money from private parties like you, with the deals set up through a loan broker; and have done it many times. Though I do not have experience as a lender, I do as a borrower. It's very important for you to get an understanding of the lending process, types of loans, etc. before you venture into loaning out your money. Different types of loans require different processes, there's short term loans for purchase, construction loans, rehab loans, etc. All of them have ways in which they are administered, and funds released. You need to make sure you are covered.  There's also crowdfunding where you are part of a larger group of investors so that the risk is spread out. 

You might also want to look at joint venturing projects, and being more active in the deals your money goes into. 

I would say to take some time and consider the options. If you decide to move forward with lending, I'd suggest you do it in your local area (where there are some great projects) and you know. Be sure to check out the loan brokers licensing, bonds, and get detailed references. 

Maybe @Jay Hinrichs will weigh in too. Good luck!