Private money lenders can offer loans in two different ways - a mortgage or as a deed of trust. A mortgage loan involves the lender providing funds directly to the borrower which is repaid over a specific time period. A deed of trust, on the other hand, involves the lender investing in the investor’s loan. The investor is then responsible for paying back the loan to the lender.
Finding a reliable private money lender can be challenging but not impossible. Start by asking friends or family members who have experience in real estate investing. You can also attend industry-specific events like conferences and networking events to connect with potential lenders. Another great way to find private money lenders is through real estate investment groups that you are a part of. Click here