Things to know before partnering with someone in private money lending?

[Patrick Hayes]

I was approached by someone about partnering with them in hard money loans and I love the idea but what are some things I need to look out for and how do I protect my investment?

[Beth Johnson]

@Patrick Hayes

Getting started in private lending is exciting and scary at the same time! When I first started there were little resources on the subject. Nowadays, there's more to help you better navigate the key considerations before you put your money out there. Just know that when people tell you about what to look for regarding the borrower, the property, the project, you need to be able to individually determine your own risk tolerance and deal criteria. Everyone does it differently and so you will want to establish personal goals and guidelines for private money. You're the one risking principal, not the resources that help educate you.

For help uncovering all the risks and retards associated with lending your money out to other active investors, check out the book I co-authored called Lend to Live: Earn Hassle-free Passive Income in Real Estate with Private Money Lending published by BiggerPockets.com/lendtolive last summer. Packed with information and resources. There's even a bonus video on advanced underwriting we did for those who purchase directly from BP rather than Amazon, etc.

Good luck!