Private lending - real estate
Hi all, Occasionally, I see people on Blind asking for advice on how to get passive income. I invest in real estate, in particular private lending. If you live in Canada and am curious about how to break into investing in real estate, DM me. I'd love to have a conversation with you. I want to do my part to help people get out of the rat race.
With rates so low why would someone borrow from a loan shark like you over a traditional lender?
It’s Canada. Their lending scene is sad
Banks don't like lending money out for things like fix and flips. So that leaves room for private lenders to lend out their money. Plus banks love paperwork and renovators value easy access to money. Also, if done right, real estate investors can get extremely high rates of return. So if they can secure a deal with some privately lent money at, say, 12% interest, they'll go for it if the numbers work.
I'm in the US but I'm curious how you initially broke into this? How did you get quickly up to speed, what's your evaluation criteria, preferred terms, kind of deal, etc. It's something I'd like to look into myself after a few more years of real estate investing.
I understand your fear. For me, the key is finding the right sort of people to work with. If you can find a dedicated and good real estate investor to continually lend money to, your money will be in safe hands. So it's not just about evaluating the fixer upper. Real estate investing is a lot about making the right connections. You mention you live in the US. I do know some very good real estate investors who do private lending in US. DM me if you are interested.
So you are a bank