If you’re ready to discover the best private money lending books of 2024, read on!
When you’re set on making a large investment, there’s a good chance that you’ll need to find funding from a non-traditional source to help you do the deal.
Apologies for the mansplaining, but we feel like we need to say that the most common sources for funding include banks and other traditional lenders…
But there’s also hard money lenders and private money lenders.
Private money lending involves securing a loan from an individual or private company.
And as you’ve already guessed, this post is gonna hook you up with an in-depth look at private money lending AND some of the best private money lending books that will help you better understand this smart strategy.
Shall we? We shall!
The Best Private Money Lending Books of 2024
Alrighty, now it’s time for us to be a bit like Oprah… you get a book and that gal gets a book!
There are loads of well-written books on the market that offer comprehensive, useful information about private money lending and when you can/should use it for an investment.
Let’s take a looksie at a few we like:
“How to Find Private Money Lenders for Your Real Estate Investing Deals” by Joe Crump
- Find out how to raise private money and where to find lenders
- Learn how to approach lenders and make a deal
- Details how to automate the entire process
Have a looksie at this private money lending book on Amazon.
“Private Money Lending” by Gustavo J. Gomez
- Describes how to use private money lending to generate passive income
- Why this alternative investment strategy isn’t as risky as investing in the stock market
- How you can positively change your life by raising funds with private money lending
Check out this private money lending book on Amazon.
“Lend to Live” by Alexandria Breshears, Beth Pinkley Johnson
- Details how to use private money lending to earn hassle-free passive income
- Guides readers on what it takes to reach financial independence
- Step-by-step guide on using the C.P.R. private money lending strategy to secure investments
Learn more about this private money lending book on Amazon.
“10 Other Real Estate Investments” by Michael Lantrip
- Covers a wide range of different real estate investment strategies
- Includes a comprehensive section about private money lending and when it should be employed
- Provides more resources that can help you find private money lenders
Check out this private money lending book on Amazon.
Now that we’ve broken down the best private money lending books, let’s look at private money lending more in depth.
What Is a Private Money Lender?
Ok, private money involves any loan that’s given to a company or person by another individual or private organization. This entity is referred to as a private money lender. I know, thanks Captain Obvious.
Now, this type of loan is typically available to borrowers who are unable to meet the usual qualifications that a bank requires OR those who don’t want to use a bank for several reasons… red tape, interest rates, time, paperwork, so much paperwork and on and on. The latter typically applies to you, Mr./Mrs. Investor.
Even though private money lending can be risky, borrowers have much more freedom when it comes to obtaining the loan and even how they use it. While the level of risk involved can lead to a highish interest rate, the average interest rate for private money lending could be similar to what you get from traditional banks. Each lender is different.
Let’s say you’re thinking about buying a fixer-upper that needs a lot of work. If you request a loan from a national bank, they’ll likely deny it. Most banks automatically refuse to approve loans for any property that’s been seriously damaged.
In comparison, private money lending thrives on these types of transactions. Hooray!
How to Use a Private Money Lender for RE Investing?
Private money lending is when individuals or companies give their own capital to an investor — OPM: other people’s money — after which the investor uses the funds to scoop up real estate deals.
Since private money lending is available to borrowers like investors, it’s definitely a smart option to consider.
Who Are Private Money Lenders?
Private money lenders are often affluent individuals and private organizations that have extra capital and are willing to provide loans to REI investors.
It’s even commonplace for investors to act as private money lenders too.
If you’ve built a network of investors, one of them may give you access to private money for your next investment.
But also consider these folks as potential private lenders:
- Friends
- Family
- Your dentist, general practitioner, surgeon
- Insurance agent
- Attorney
- Any professional in your sphere of influence… you get the idea
How to Find Private Money Lenders?
Ok, now that you know who private money lenders could be, it becomes much easier to find them.
While lenders who focus on private money lending aren’t as prevalent or vocal about it as traditional lenders, there are plenty of options. (The list above is just a handful of suggestions of the many. Have a brainstorm sesh with a pal for more ideas!)
Remember, private lenders are individuals or companies that aren’t affiliated with a financial institution. One of your friends or family members can be a private lender, like we mentioned above.
While it’s common for investors to get funds from people they know, there are also bunches of private money lending companies to consider. While some of these companies offer private money loans for many different types of investments, others focus specifically on real estate. Find them!
The Bottom Line: Private Money Lending Books
There you have it: the best private money lending books & everything you need to know about private money lending!
Finding private money lenders to help you invest in real estate deals can be a super effective method to deal after deal.
You can avoid traditional lenders and will likely be able to benefit from favorable terms.
We’d suggest you start learning how to do private money lending deals by checking out one or more of the private money lending books we shared above.
Each private money lending book offers in-depth tips and suggestions that should make you more knowledgeable about private money lending.
Then, all that’s left is to actually get some private lending and do deals. Excitement awaits!
Looking for other books on real estate topics? Check out our best wholesaling real estate books and our real estate books for beginners.
