BiggerPockets Real Estate Podcast - Interest Rates, Returns, and Private Money Red Flags

Private money lending has become a hot topic over the past few years. With rising equity and asset prices, more lenders have come out of the woodwork, and an equal amount of investors have sprouted up to match the need. But taking on private money isn’t a light decision, although most investors think of it that way. Doing a deal the wrong way could put your reputation in jeopardy and rack up an expensive bill you’ll need to pay back. Before you accept (or lend) private money, there are a few things you should know. But you don’t have to go through trial and error to figure them out! Back on part four of this private money series is Amy Mahjoory, investor and private money expert. Amy goes into the nitty-gritty of private money, from debating debt vs. equity to the risk of raising capital, protecting your investors, and the type of interest rates you can charge and returns you can expect. If you haven’t raised or lent private money before, we recommend watching the entirety of this four-part series, as it answers crucial questions that rookies can often overlook. We also follow up with some Q&As from the comment section about how to pay a private money lender back, why coaching is seen as scammy, and the three documents you’ll need to do a private money deal. ~~~~ Join BiggerPockets for FREE: https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Watch the Other Episodes with Amy: Part 1: https://www.biggerpockets.com/blog/real-estate-636?utm_source=youtube&utm_medium=description&utm_campaign=none Part 2: https://www.biggerpockets.com/blog/real-estate-637?utm_source=youtube&utm_medium=description&utm_campaign=none Part 3: https://www.biggerpockets.com/blog/real-estate-654?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Listen to Our Episode with Alex Hormozi: https://www.biggerpockets.com/blog/real-estate-649?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Grab the Private Money BiggerPockets Books: Lend to Live: https://store.biggerpockets.com/products/lend-to-live?utm_source=youtube&utm_medium=description&utm_campaign=none Raising Private Capital: https://store.biggerpockets.com/products/raising-private-capital?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Amy: Website: https://amymahjoory.com/ LinkedIn: https://www.linkedin.com/in/amy-mahjoory-bb299511 Instagram: @amymahjoory or https://www.instagram.com/amymahjoory/ ~~~~ Connect with Rob (Robuilt) on YouTube, Instagram, TikTok, and Twitter: Youtube: https://www.youtube.com/c/Robuilt Instagram: https://www.instagram.com/robuilt/ TikTok: https://www.tiktok.com/@robuilto Twitter: https://mobile.twitter.com/robuiltchannel ~~~~ Connect with David and Rob on BiggerPockets: David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Follow David on Instagram: @davidgreene24 or https://www.instagram.com/davidgreene24/ Episode 655 Show notes at: https://www.biggerpockets.com/blog/real-estate-655?utm_source=youtube&utm_medium=description&utm_campaign=none 00:00 Intro 04:00 Quick Tip 05:50 The FACT Framework 07:57 Getting Investors Paid (and Into Deals!) 14:43 The Downsides of Equity vs. Debt 25:12 The Benefit of Big Deals vs. Small Deals 31:16 Deploying the DollarsPrivate Money Red Flags 34:00 Private Money Red Flags 48:03 Contracts, Coaching, and Cash Flow Q&A 01:06:45 2022's Best Investing Opportunities #biggerpockets #realestatepodcast #episode655