Is private money lending the next best way to invest? To the everyday landlord, home flipper, or once-in-a-while investor, private lending seems completely foreign. 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, private money lending is available to more people than you think, and it could be your next way to make truly passive income.
Alex Breshears and Beth Johnson were neither millionaires nor active investors when they started lending private money. Over time, they realized that they had grown relationships with active real estate investors, many of which always needed funding for the next deal. While swinging hammers and painting baseboards may sound fun to active BRRRRers or flippers, to Alex and Beth, the passive income that came in from private money lending was even better.
They’re now so ingrained in the world of private money lending that they’ve written the newest BiggerPockets book, Lend to Live, where they talk about how to build “hassle-free passive income” 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 start building truly passive income streams.
David:
This is the BiggerPockets Podcast show 642.
Beth:
I think a lot of people say they have to have a specific structured mindset, and they got to be really goal oriented, and put out into the universe what they want. Oftentimes, for some people, they’re so over engineered in their goal setting, that they may not be… They might have blinders on to what kind of opportunity exists out there. I think, both Alex and I shared our stories about how we just happened upon private lending, and every aspect of real estate investing involves some chance encounter with someone with some…