In this episode of Coffee with Carl, Attorney Carl Zoellner shares loan fundamentals and how to reduce the risk associated with private money lending.

Private money lending to other real estate investors can yield lucrative payouts, especially if you’re gaining enough experience in fix-and-flips or rental property management on your own to be able to evaluate proposed deals critically. Leaving your real estate investment earnings in a savings account is not a great way to establish wealth. Thus, many established and rookie investors have begun striving to aim higher with other ways to invest their hard-earned money.

Watch now as Carl covers the basics of private money loans and what you need to look out for if you are or are thinking about becoming a private money lender. He then shares some lesser-known but advantageous options when it comes to promissory notes and the security instruments used by successful investors. 

Ultimately, success in private money lending depends on organizing and executing the right documents. Having a team of attorneys and accountants on your side who understand the legal and tax implications of real estate investing as a whole helps to ensure that the risk you take is sufficiently compensated in your private money deals. Want to learn more? Listen to this podcast about hard money loans for real estate investors.

If you have any questions, comments, or feedback about this episode, let us know at cwc@andersonadvisors.com.