Evaluating a Potential Loan: The Borrower
Wednesday, December 04
The Borrower: The 3 C’s of Credit Borrowers are evaluated based on the 3 C’s of Credit: Character, Capacity and Capital. There are some gurus selling courses on how to find private money who say that your credit doesn’t really matter. They claim that all you need is equity in the deal (col...
To Whom Do I Lend?
Tuesday, December 03
The investors I lend to are a diverse group. Most are experienced but I have funded the purchase of one investor’s very first rental home and another’s first rehab project. (Both of these investors had significant personal funds in the deal. The rehabber owned a construction trade company ...
Why Do I Lend?
Wednesday, November 20
Sometimes I lend because I want to strengthen a relationship with a fellow investor. That’s right. Lenders want to partner with investors. After all, I have this SDIRA. I can’t take the funds out until I am 59 ½ years old without paying taxes and penalties on the funds withdrawn. I have ...
Confessions of a Private Lender.
Sunday, November 17
I am a private lender, have been for nearly 4 years. I am not wealthy. The first deal I funded was for $50,000. That may seem like a lot of money right now but I assure you that if you follow a real estate investing plan you may soon find yourself in control of considerably more than that. ...