Avoiding the Pitfalls of Private Lending

Get Creative with Pace Morby

Welcome to a new episode of Get Creative! In this episode, our speaker delves into the world of private money lending, sharing invaluable insights and strategies to help you navigate the risks and maximize your returns. From the importance of trust and documentation to the necessity of having a solid recourse plan, this episode is packed with practical advice to ensure your private lending ventures are a success.

Highlights:

"Even if you follow all of these rules, plan on losing every mother freaking Penny when you wire that money."

"Do not trust anyone. I don't care who they are. I don't care if it's your grandma. I don't care if they spend time with me."

"Anytime you feel pressure, you walk away. Feel pressure, walk away."

"When wiring money, plan on never, ever, ever, ever, ever seeing it again. Ever, ever, ever, I follow all of these rules. The money's effing gone. It's gone. Plan on it."

Timestamps:

0:00 - Lending Money: Risks and Rules

2:58 - The Importance of a Transaction Coordinator (TC)

4:00 - Ensuring Recourse and Collateral

5:53 - Higher Risk, Higher Reward

10:34 - Recording and Documenting Everything

12:53 - Planning for the Worst-Case Scenario

13:07 - What If Scenarios

13:34 - The Role of Personal Guarantees

14:50 - The Importance of Control

25:12 - Final Thoughts and Key Takeaways

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► Want to Become a Private Money Lender? Join Us For The Upcoming LIVE Training this Saturday to Learn How to Lend Money on Real Estate Deals:

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