A question from someone I mentor reminded me of a simple but sometimes difficult step to take in due diligence of a new borrower – ask for lender references. It seems like it can be very hard to bring yourself to do this – the borrower looks great, they are experienced and have liquidity… if they aren’t working with their … Read More →
Crowdfunding continues to grow in popularity as an alternative investment vehicle. The ability to invest directly in people, real estate and even companies without an intermediary is empowering for many. And with the concurrent rise in mobile and other technologies, access and security for these powerful lending tools is better than ever.
A 2014 report from the financial market research … Read More →
With peer-to-peer lenders filling a void in the loan market, attracting private loan borrowers is not a difficult proposition. Plenty of borrowers, particularly those in the real estate investment industry, are willing to pay premium prices in order to obtain the quick, short-term funding they require.
However, in order for private lenders to minimize risk, it's vital they properly evaluate potential … Read More →
No matter your goals for creating passive income, one thing all investors have in common is the need for smart strategy. Unfortunately, it's all too easy for individuals to follow popular opinion or outdated advice when trying to reach their wealth-building objectives.
Contrary to what financial pundits and so-called experts may say, there are some wealth-building myths that need to … Read More →
There are plenty of moving parts to be aware of when you enter the private lending game, and compliance with local laws and regulations is chief among them.
However, instead of getting bogged down in legal minutiae or feeling overwhelmed by lending guidelines, it's important to put things in perspective.
"Contending with compliance issues is an essential part of any … Read More →
Risk is a part of every investment, no matter how safe and secure it may appear. The key is to select an investment strategy that allows you to minimize risk as much as possible while maximizing returns.
Experts from across the financial industry regularly weigh in on which investments are most hazardous. From stocks and bonds to money market funds … Read More →
Ever see the TV show Storage Wars on A&E?
You’ve got just 30 seconds to size up the contents of an abandoned storage locker – stuffed to overflowing with someone’s forgotten treasures – in order to determine whether or not you’d like to place a bid.
If you’re lucky enough to win the foreclosed unit, you have the … Read More →
Imagine you’re a ninth grade boy, in your parents’ dimly lit basement, about to lock lips for the first time with the cute girl who lives next door. She slowly leans in toward you. With sweaty palms, and a racing heart, you nervously press your lips against hers…
And then your worst nightmare happens: your braces lock.
Well … Read More →
We’ve all done it.
Our hearts are racing to start a new venture, like private lending, with visions of wild success. Then a week or two into the fancy-schmancy program we ordered that’ll lead us to the promised land, we find ourselves hopelessly distracted. Suddenly, you become obsessed with flossing your cat, rearranging your sock drawers or clearing your … Read More →
Networking is hard. Especially when you don’t have a clue what you are doing. You may feel like an ill-prepared contestant on Survivor, stranded in the wilderness of the complex private lending industry. Fortunately you’re not. You won’t have to forage for food and water, or build a structure out of drift wood and palm fronds to survive as
a … Read More →
“Baaaaaa” went the sheep as he walked into the mortgage lending office. “Yum!” went the mortgage broker behind the desk…
“Have I got a loan for you!”
There are many times when investors need to take out mortgage loans as leverage to grow their private lending business. And the friendly mortgage broker strongly suggests a loan based on the best … Read More →
Imagine being on a pro sports team that wins every game.
This is kind of like being on the Harlem Globetrotters. Of their 22,000 games they’ve only lost 345 times to the Washington Generals. That’s a 98.5% win percentage.
“Of course!” You scoff. “The generals are supposed to lose.”
But the fans love to watch the Globetrotters great … Read More →