The banking sector makes hundreds of millions of dollars every year through money lending. You won’t be able to make that much, but you can start a private money lending service for a profitable career. This video will explain some tips to getting started in the private lending business.
A private money loan is when an individual or business lends their own private funds to another individual. It’s an alternative option to financing investment opportunities outside of the banking system. It’s useful for individuals who need an influx of cash for a short period of time (like people who flip homes).
Another reason someone may seek a private loan is to get around the strict requirements banks have for loans. Of course, the lender then needs to be aware of the risks they are taking on. Lenders need to understand their ability to exercise the power of sale. This means the lender can then sell the item the borrower took the money out to purchase, and pay themselves back this way.
Usually, private money lending is done in the real estate market. It’s easier to exercise the power of sale of property than a smaller good or service. For more information, check out the video above.