All Forum Posts by: Jonathan Warner

I've got a few tips- like any other business, this is a relationship based thing. Get to real estate meetups and network with people out there doing deals. Here are a few high level thoughts for you as a beginner:

-Don't lend in second position

-Don't do deals with new investors

-Don't experiment with new strategies, even with experiences investors- ie, don't jump in to a first development project with someone just because they've flipped 20 houses.

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly. They can help make sure your contracts reflect your equitable interest in the deal.

-Vet contractors and builders that your clients want to work with. The trades can make or break a good deal.

There are a billion more, but that's a start.

Good luck!

This is great, thank you. So basically, get an attorney to put my contracts together as the first step, reviewing them with a title agency as the second step, putting the other team members together as the third step, and starting the search for borrowers as the fourth? Or do you mean for me to approach the borrowers first?

You bet! Finding borrowers won't be an issue, so I wouldn't worry about that piece, just making sure you have an agreement you are comfortable with and borrowers and properties you are comfortable with. Definitely vet the deals, they might end up becoming your properties.

Best of luck!

Got it! Any tips on finding qualified (key word) borrowers in my local area? Working with an agent should help me there, correct?

0 Votes

Quote from @Jacqueline Wright:

Starting in private lending can be an exciting way to get involved in real estate while leveraging your capital. Here’s a quick guide to help you get the ball rolling:

1. Understand the Process – Before lending, make sure you have a solid grasp on the private lending process, terms, and risks. Knowing the ins and outs will help you navigate deals confidently.

2. Legal Protection – It's important to have a solid contract in place, typically a promissory note and a security agreement that outlines the loan terms, interest rates, repayment schedules, and collateral (often the property being financed). A good attorney specializing in real estate can help draft these.

3. Work with Professionals – Consider forming relationships with local appraisers, title companies, and attorneys to help with due diligence. You can also ask for referrals from other lenders or investors who have worked in the area.

4. Build a Network – To get your name out there, you can join local real estate investment groups, online forums, or platforms like BiggerPockets. Networking with real estate agents and flippers who may be looking for private financing is also key.

5. Marketing Yourself Locally – Focus on word of mouth and local networking. Consider attending real estate investor meetups and sharing your lending interest. Creating a website or social media presence highlighting your lending criteria can also help attract potential borrowers.

6. Know the Risks – Be prepared to perform thorough due diligence on any borrower or property. Always make sure the loan-to-value ratio (LTV) aligns with your risk tolerance (usually 60-70% for fix-and-flip loans).

Once you're prepared with contracts and a local network, you can start talking to borrowers and agents to find opportunities. Would you like recommendations on resources or contracts?

I have responded to your DM! I’d love to discuss further. Thank you for the advice. I’m garnering that it’s best to start with contracts and a team local to my area. And the. I’ll be prepared to start generating leads of borrowers.

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Quote from @Corby Goade:

Quote from @Jonathan Warner:

Quote from @Corby Goade:

-Don't lend in second position

-Don't do deals with new investors

-Don't experiment with new strategies, even with experiences investors- ie, don't jump in to a first development project with someone just because they've flipped 20 houses.

-Vet contractors and builders that your clients want to work with. The trades can make or break a good deal.

There are a billion more, but that's a start.

Good luck!

Best of luck!

I’ll start with the lawyer and the contract then. Thank you.

1 Vote

Hello. I'm looking to connect with other private lenders in the Tuscaloosa, Al, Birmingham, Al, or Huntsville, Al areas.

Send me a DM and let's discuss the local market!

,West

1 Vote

Tuscaloosa, Alabama

Quote from @Chris Seveney:

Quote from @Mike Grudzien:

Jonathan,
Hands down, this is the "bible":
https://store.biggerpockets.com/products/lend-to-live
Don't leave home without it!

I second this - Beth is great and has a group as well where you can learn a ton on private lending.

To the poster who mentioned giving them 100% financing - as a private lender NEVER give someone 100% financing. Biggest mistake I see people make

Hey Chris, great to see you offering me advice once again, its greatly appreciated.

I joined Beth's FB group. It's great.

I can only assume the guy asking for 100% financing is doing a little trolling haha.

1 Vote

Quote from @Corby Goade:

-Don't lend in second position

-Don't do deals with new investors

-Don't experiment with new strategies, even with experiences investors- ie, don't jump in to a first development project with someone just because they've flipped 20 houses.

-Vet contractors and builders that your clients want to work with. The trades can make or break a good deal.

There are a billion more, but that's a start.

Good luck!

0 Votes

Quote from @Mike Grudzien:

Jonathan,
Hands down, this is the "bible":
https://store.biggerpockets.com/products/lend-to-live
Don't leave home without it!

Hi Mike,

I've read it and it's great. I'm just a bit confused as where exactly to start. I guess that is implied in the chronological order of the book, but I dont see a 1-2-3 step-by-step process. Someone advised me to start with an attorney so I suppose that is my jumping off point.

1 Vote

I've done a bit of research on the private lending space and I'm coming to the conclusion that it is the way I would like to enter the real estate space. I have significant enough assets and capital that I can make a few loans while still maintaining a healthy stock portfolio to keep my money working for me.

I'm curious if you guys have any tips for me as a beginner. How do I get the ball rolling?

Do I begin by getting a solid contract?

Do I contact appraisers and local title insurance agencies to begin to find one that I could use?

Or do I start by just getting my name out there and then get those pieces in place once I find a borrower? I'm assuming I should be somewhat prepared before doing this, as I don't want to come across as a "not serious" waste of time to any agents or borrowers.

Since I only want to lend locally, how do I get my name out there to start my search for borrowers?

Any advice would be greatly appreciated.

Thanks,

West

1 Vote

Quote from @John Mason:

Jonathan welcome to Bigger Pockets!

Some of the books which are relevant would be the The Millionnaire Real Estate Investor by Keller.
The Slight Edge and Atomic Habits too.

and

https://www.amazon.com/Building-Wealth-One-House-Time/dp/007...

Hey John,

I've finished Millionare real Estate Investor and Slight Edge

I thourougly enjoyed Millionare Real Estate Investor. I like the practicality of it because a lot of what I've read hasn't really gotten into the weeds of how to structure deals or network properly. However, I noticed it was written in 2005 and I can definitely see tones of "real estate mania" that got brought back to earth in 2008 aha. Specifically, the idea that just buying it right is enough to make it work.

I enjoyed Slight Edge as well. It's a great framework I can apply to all areas of my life which I'm sure will all, directly and indirectly, come back to by future business ventures. I did feel like I was having the same nail hammered into my head at different angles for the first half. But by the end, I realized why he did it that way. It's now one of my favorite books. It was a good nail!

Anyways, thanks again. I'm here for more reccomendations if you have them.

0 Votes

Huntsville, Alabama

Quote from @Chris Seveney:

Quote from @Jonathan Warner:

Quote from @Chris Seveney:

Quote from @Jonathan Warner:

Hello all. I’ve been self-educating about real estate for about 4 months now. I’m starting to lean more towards private lending as a way to get my toes wet and get my money working for me in a relatively stable way.

I’m looking for educational resources or literature. Any help would be greatly appreciated.

Lend2Live written by @Beth Johnson and her FB group is a great place as well to get information. Also American association of private lenders is one trade group,

Thanks for the response, Chris. I’m reading Lend to Live right now actually. Seems like a great book but would like to find another book or two on the subject. Even if it’s something tertiary to the subject of lending I’d be happy to give it a read.

Im looking for her FB group and can’t find it. What’s the name of it?

Lend2Live: A Private Lender Collaborative | Facebook

Got it! Thanks.

0 Votes

Tuscaloosa, Alabama

All Forum Posts by: Jonathan Warner

Jonathan Warner has started 5 posts and replied 23 times.

Post: Private lending. Where do I start?

Post: Private lending. Where do I start?

Post: Private lending. Where do I start?

Post: Looking for other private lenders

Post: Private lending. Where do I start?

Post: Private lending. Where do I start?

Post: Private lending. Where do I start?

Post: Private lending. Where do I start?

Post: Looking for literature reccomendations

Post: Im considering private lending