Private Lending Experiences

[Neil Rose]

Does anyone have experience lending their own capital for fix and flips? Looking for experiences both good and bad and what you learned and would or wouldn’t do again.

[Evan Polaski]

@Neil Rose, I have not lent my own money, but have spoken with several peoplethat have.  Maybe it is because I am talking to them, that the overall experiences were not great.  One had to threaten foreclosing on the property, because the flipper was not selling and trying to get more money for the project, even though the loan was due.  Others have to treat their flippers like tenants, chasing down monthly payments.

@Landon Bleau, those that I have borrowed from in the past, as a flipper, required very healthy reserves of at least 10% of the total loan balance, and a track record of at least 3 successful flips.