Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

52
Posts
11
Votes
Aaron Akins
  • Investor
  • Boise, ID
11
Votes |
52
Posts

Giving Personal Loans?

Aaron Akins
  • Investor
  • Boise, ID
Posted

Does anyone have experience providing personal loans to individuals with the intent of both helping out an acquaintance and making a return due to charging interest?

In 'Rich Dad, Poor Dad', Kiyosaki mentions giving short term personal loans to folks as one of the many ways he makes money. This is essentially what I'm trying to do. But don't have any experience in doing so. 

With all conversation pertaining to the potential consequences of lending money to a friend/family left off the table (lets just assume that I've considered all the risks/implications), I'd like to know information about how a contract might look.

Anyone willing to help/make suggestions? 

Most Popular Reply

User Stats

10,252
Posts
16,111
Votes
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,111
Votes |
10,252
Posts
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

@Aaron Akins when I've done it, it was to fill a need that didn't check traditional lending boxes.  

For instance,  a friend of a friend had tow truck experience, his employer was retiring and he wanted to hang his shingle.  He tried other lenders with no luck and put his truck title as collateral.    

A BIL owned land and wanted to build a house on it.  Banks weren't interested until it was at least to roofed shell stage.  We got got a note and mortgage (we didn't record) and funded it. 

The common denominators for me are a promissory note, collateral and filling a lending void.  

Loading replies...