How do I become a private lender?

[Alicia Evans]

I have heard there are smaller lending groups where you can purchase a note of the loan for a private investor with fairly good return rates. I live in the Bay Area and I want to get into real estate, but there's just not a lot on the market right now and what is on the market is selling for hundreds of thousands of dollars over asking price. I am looking for connections to vetted private lending groups to learn more about my options as a smaller lender. 

P.S. Any advice on how to avoid a scam in private lending is welcome! Thanks BP folks (: