How to Protect Yourself as a Private Lender w/Keith Baker

<p><span style="font-weight: 400;">Private lending is one of the most effective ways to generate wealth - but it does present some risks, so we need to ensure we protect ourselves. Is it ever a good idea to agree to a loan without paperwork? Who should we be lending to, and should we always evaluate our current financial position before making a deal? On this episode, host of the Private Lender Podcast, Keith Baker shares how we can protect ourselves as private lenders. </span></p> <p> </p> <p><strong>Takeaways + Tactics </strong></p> <p><span style="font-weight: 400;">Don’t loan anything until paperwork has been signed. Paperwork protects us, and should be drawn up by licensed professionals - we should never try doing this ourselves.</span></p> <p><span style="font-weight: 400;"><br /> Work with people who have skin in the game. Our borrowers should have at least 10% of their own cash in the deal. </span></p> <p><span style="font-weight: 400;"><br /> Avoid taking on second positions. The risk skyrockets with these investments, so wherever possible, stick to first position loans.</span></p> <p> </p> <p><strong>Guest Bio- </strong></p> <p><span style="font-weight: 400;">Keith Baker is the co-founder of Asset REI, LLC, and the host of the Private Lender Podcast. After learning many lessons the hard way throughout his career in construction and real estate, Keith is passionate about teaching his listeners about the benefits of private lending done the right way. </span></p> <p><span style="font-weight: 400;"><br /> To find out more about Keith and to listen to his podcast, head to <a href= "http://www.privatelenderpodcast.com">www.privatelenderpodcast.com<br /> </a></span></p>