Playbook #010: Private Lending
🖼️ The Big Picture
If you have cash sitting in the bank, losing money to inflation, then being a private money lender on real estate can be a sensible way to earn strong returns, with potential longterm upside or equity, secured by a mortgage. You can invest as an individual, or through your small business via:
- Bridge loans (short term loan until permanent financing is secured)
- Development loans (usually for single family or multifamily projects)
- Residential rental loans (for rehab and sale or rental)
- Commercial loans (for office buildings, hotels, mobile home parks etc.)
You can lend on individual projects as a sole investor, participate in a group of investors on a single project through a syndicate, or invest through a fund where your money could be used on any number of projects.