642: Private Money: What the Experts Warn Against Before You Lend (Or Borrow!)

<p>Is private money lending the next best way to invest? To the everyday landlord, home flipper, or once-in-a-while investor,<strong> private lending seems completely foreign</strong>. Why would you lend money when you can put it into your deals? And even if you wanted to, wouldn’t it take millions, or at least a few hundred thousand dollars to get started? Surprisingly, <a href="https://www.biggerpockets.com/blog/private-money-lending-is-a-perfect-alternative" rel="noopener noreferrer" target="_blank"><strong>private money lending</strong></a><strong> is available to more people than you think</strong>, and it could be your next way to make truly passive income.</p><p><strong>Alex Breshears</strong> and <strong>Beth Johnson</strong> were <strong>neither millionaires nor active investors </strong>when they started lending private money. Over time, they realized that they had grown relationships with <strong>active real estate investors</strong>, many of which always<strong> needed funding </strong>for the next deal. While swinging hammers and painting baseboards may sound fun to active <a href="https://www.biggerpockets.com/guides/brrrr-method" rel="noopener noreferrer" target="_blank">BRRRR</a>ers or flippers, to Alex and Beth, the <strong>passive income</strong> that came in from private money lending was even better.</p><p>They’re now so ingrained in the world of private money lending that they’ve written<strong> the newest BiggerPockets book, </strong><a href="https://store.biggerpockets.com/products/lend-to-live" rel="noopener noreferrer" target="_blank"><strong><em>Lend to Live</em></strong></a>, where they talk about how to build “<strong>hassle-free passive income</strong>” by lending private money. In this episode, they go over how a new investor can start lending, what to look out for in a lender when you need money for deals, and how even with a few thousand dollars, you too can<strong> start building truly </strong><a href="https://www.biggerpockets.com/blog/passive-real-estate-investing" rel