Private lending and your team


Your Team

Private real estate lending is not a solo venture.

It requires the best team you can find to help you create the best note for you

and your family.

Private lending and your team.

Before we jump into who should be on your team, let’s remember that the cost of each one is normal for borrowers. They’re used to paying for these services. If anyone tries to talk you out of using one or all of these “teammates,” it’s probably a good idea to walk away and find someone else to lend your money to.

Below is the recommended minimum to get a loan properly closed.

Attorney. To make sure your paperwork is legal, proper and protects you.

Closing agent. A third party that handles the paperwork, filings, and money transfers.  This is typically an attorney, escrow company, or title company.

Valuation services. A realtor or appraiser who provides an as-is value for the property.

Title company. Provides title insurance to insure you are in the proper lien position (preferably first lien position).

Insurance company. Provides protection from fire or other loss on the property.

You may also wish to hire the following:

Servicing company. Will collect payments and verify taxes and insurance are paid in a timely fashion.

Note company.  Help find, underwrite, and close each loan.

Every closing and every state handle private notes/real estate differently, so it’s likely you will have a different team each of you will have a different team.


Step by step roadmap shows you the path of funding a private note.

Private lending and your team

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Private Lending the Basics-Terms


The Basics

There are some general terms every private note investor should understand before they being their journey. Here are some private lending the basics-terms:

Loan: A loan is the lending of money between one or more individuals or organizations to other individuals or organizations. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid in full. “In full” means that they will pay the lender back the principal amount, or the amount of the loan, plus interest.

Valuation: The current worth of a property.

Mortgage/Deed of Trust: A legal document that secures a property and legally puts it in your borrower’s name (trustee) and your name (lender).

Title Company: A vital third party that ensures a property is legally transferred and your loan is well-protected.

Loan Amount: The total amount the borrower is seeking for their project. This might encompass the property purchase price, renovation costs, and/or closing fees.

Lien: When you secure a loan on a property, you will be given a lien position. This is essentially your place in line to be paid back. So, you always want to try and be in first lien position


Payment Date: This is when the monthly/quarterly payments from the borrower are due.

Interest Rate: Your annual return on a loan. Your loan agreement should specify how often interest is to be paid (typically monthly).

Term: The length of the loan. Private notes can range from a month to many years. It just depends on your comfort level and what you’re looking for.


Learn more about returns and security from private notes in this blog addition.

Private Lending the Basics-Terms


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Private lending with your IRA


Private lending with self directed IRA's

How to lend with your IRA or other retirement plans…private lending with your IRA.


Private real estate notes are a great way to keep your retirement growing nice and steady without the roller coaster ride of the stock market.

But did you know you can fund one of these loans with retirement funds through a company that offers Self Directed IRA Plans?

Most large IRA companies only allow you to invest in stocks and bonds. Self-Directed plans, however, allow you to invest retirement funds in any investment the IRS allows.

This includes real estate and loans.

To invest in private notes using your retirement funds, you must set up an account with a company that offers the Self-Directed options.

Here is a list of some of the companies that offer Self-Directed plans:

  1. The Entrust Group
  2. Equity Trust
  3. Pensco
  4. New Direction IRA
  5. IRA Services Trust Company
  6. Midland Trust
  7. Mainstar Trust
  8. Vantage IRA’s

Of course, you can check the web for other local options, too.

Once you establish an account with one of these companies or another you feel comfortable with, you can start funding loans!

Our suggestion is to select two or three companies you can see yourself working with and shop them for fees and customer service.

Some companies charge just an annual fee, and some charge every time you create or payoff a loan. Other companies might charge you both fees. So, it’s smart to take a few hours and see what best matches your needs.

If you’re interested funding short-term loans (3 to 6-month loans) and have a funds moving back and forth, you might want to stay away from companies that charge larger fees per transaction.

On the other hand, if you’re more interested in long-term loans that go on for years, you probably want to find a cost structure that has a lower annual fee and a larger per transaction fee.

It’s truly up to you and what you’re comfortable with.

So, go check out a couple. Find the fees that match your goals and the customer service reps who will answer the phones and your questions.

If you have any questions on private lending with your IRA you can reach out to us through the contact us form and we would be glad to help.


What are private real estate notes?


Private lending with your IRA


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private notes done right

In our last post (Ways to make your private notes a lot more secure. Part 1) we discussed 5 ways to keep your private notes more secure.  In this post we are going to wrap up our conversation on this topic with the remainder of our top 10.

Private notes are a great way to earn above market interest rates and this is a few ways to keep them more secure and well protected.

6.  Check how committed your borrower is to their promises by asking them to put things in writing. That’s what a loan agreement is for—to spell out every term of the loan.  You will find a lot gets promised and don’t try to commit it to memory.

7.  Walk away if a borrower offers outrageous rates. If it’s over market rates, it’s probably a scam. Good borrowers don’t want to pay inflated rates. In fact, they want to pay and negotiate the lowest rate they can get.

8.  Always escrow funds for fix ups. That means you hold the renovation funds back at closing and release them later, as work is completed on the property. This will ensure the property value is reached by all the worked being completed as agreed.

9.  Ask for a borrower’s “story.” Learn about the good, the bad, and the ugly. This will build trust and prove if a borrower is trustworthy. If their story changes each time you talk to them, walk away. Don’t be talked into a bad loan relationship. Get all of your agreements in writing and fact check as much as you can.

10.  When someone needs to close a deal SUPER-fast (in hours or a day or two), run, don’t walk. This “emergency” to fund NOW will likely become a pattern and those loans will become a headache for you for years to come.  The borrowers will also likely want to skip steps that protect your money…there are too many loans out there to take on this extra risk.


If you have any questions on how to keep your loans as secure as possible please reach out to us on the Contact Us form.

Secret to better returns

Have a great day.



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private notes done right

Ways to make your private notes a lot more secure. Part 1

Putting money to work in private notes is a savvy, safe way to invest your money. But like all investments, there are there are a few ways to make them even more secure.  Please understand that the fees and costs of these items should always be picked up by the lender.  These costs are a lot less than they would pay with a traditional lender.

Here are 1-5 of our top 10:

  1. Always insist upon using a third party to create your closing documents. Have your attorney complete or review all the documents (this should be covered by the borrower and not you). Do NOT let the borrower write them for you.
  2. Hire an appraiser or local realtor to valuate each property to so you know the real current market value.  Do put all your trust in the valuation provided by the borrower. It doesn’t mean they’re trying to lie. They simply might not know the value of the property.  The loan to value is key to keeping your money secured.
  3. Require each loan be closed, insured, and recorded by a title company and or attorneys office. If a borrower claims closing/recording through title is a waste of time or money, they are not the type of borrower to receive your money!
  4. Always pay for title insurance and request first lien position. First lien position will ensure you get paid back first, before anyone else.  If you just order title and don’t request to be in 1st lien position you may end up in a jr lien position.
  5. Always verify wire instructions verbally with your title company to avoid fraudulent activity. Do this each time you send or receive a wire. Wire fraud has increased and always take the time to protect your money.

Next up Ways to make your private notes a lot more secure. Part 2. 6-10

Private notes secured

If you have questions or what to learn more about private real estate lending reach out to us today through the Contact Us form.


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Private notes-Income and Security #3


Better rates and returns

At this point, you know having a good loan means having good properties and good borrowers.

But there’s still one more key component that will help you build a solid foundation for your investments:

Good security.

We all interpret the same conversation in different ways. For example, a conversation between you and a borrower might be understood in two different ways: your way and their way.

That’s why it’s so important to know these top 3 ways to secure your loans:

  1. Get it in writing and get it signed by both parties.
    • No verbal agreements allowed.
    • Record agreements like rates and terms.
  1. Always have an attorney prepare your documents.
    • Use YOUR attorney, not the borrower’s.
    • Require the borrower to pay the cost of the attorney (not you).
    • Ensure defaults are in place.
    • Include all documents required by the state.
  1. Close through a title company
    • Make sure you’re in the proper lien position (first).
    • Make sure the lien gets recorded.
    • Make sure the closing is handled by a third party (title).

All of this might seem like a lot of work, but these simple steps will protect you, your loved ones, and your money.

Creating good returns with good loans can be easy and profitable. All you need to do is use the 3 key building blocks I’ve shared with you to create a strong foundation.

  • Good Properties
  • Good Borrowers
  • Good SecurityBetter returns

    Ready to build your foundation for good loans? Contact us today and see how we can help you succeed in private lending.

    • Email us a question at
    • Schedule a 30-minute consultation.
    • Enroll in my personalized coaching services.

    Did you enjoy Private notes-Income and Security #3?  Check out:

    Private notes-Income and Security #1

    Private notes-Income and Security #2






Private notes-Income and Security #3


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Private notes done right

What’s one of the best things about investing in loans?

It doesn’t matter if the market is up or down. Your money will be always be protected (if you do them right), and you’ll always find checks arriving in your mailbox.

But before you invest in loans, you need to make sure they’re good ones.

Last post, I shared the first foundation block to a good loan: good properties.

Today, I want to reveal the second key foundation: good borrowers.

In hot and cold markets, you want someone you can depend on to 1) keep you protected and 2) confident your payments will arrive on time.

So, what makes up a good borrower? Here are my top 3 requirements:

  1. Proof and history. They have a solid history and proven concepts for their business (be that rentals or other investment like fix and flips).
  2. Reliable income and reserves. They do not solely rely on the property to make their payments.
  3. Honest communication. They do not hide any material facts, they’re happy to keep you updated, and they’re never late with payments.

Basically, you need to find a borrower who you enjoy working with and creates a win-win relationship. A loan with this person should not create extra work for you.

It’s really as simple as that.

So, now that you have a good property and a good borrower to work with, how can you make sure your loan is secure? That’s up in our next post.

Private lending

Ready to build your foundation for good loans? Contact us today and see how we can help you succeed in private lending.

  • Email us a question at
  • Schedule a 30-minute consultation.
  • Enroll in my personalized coaching services.

Did you enjoy Private notes-Income and Security #2?  Check out:

Private notes-Income and Security #1

Private notes-Income and Security #3


Private notes-Income and Security #2


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Better returns with private notes

Is your money well protected?

Does it produce income?

A strong asset and payment stream are the keys to backing all your investments.

How do you do this? By establishing a solid foundation of good returns through good loans.

Good loans are made up of 3 key components:

  1. Good properties
  2. Good borrowers
  3. Good security

Lets start by looking at number 1 in this post and follow up in future posts with 2 and 3.

Good properties.

How can I keep my money working safely for me in any economy?

The first step is to find good loans. And the first step to finding good loans is to find good properties. Because real assets are the BEST way to protect your money.

That’s what I want to chat with you about today.

Good properties.

They are the first foundation block to creating good loans. But what makes a good property?

Here are my top 3 musts:

  1. Must be highly marketable. That means it should be:
    • In an area of demand
    • In good condition
    • A functional home
  1. The property must produce income for the borrower.  Think rentals, small commercial or fix and flips (from the sale).
  2. Must be in locations you understand and like. Loan in areas that fit your comfort level.  If you are from a small town loan in small towns.  If you are from the city put your money to work in the city.

Remember, a real asset (that you like) to protect your investments is the first key building block to good loans.

Private lending done right

Ready to build your foundation for good loans? Contact us today and see how we can help you succeed in private lending.

  • Email us a question at
  • Schedule a 30-minute consultation.
  • Enroll in my personalized coaching services.


Did you enjoy Private notes-Income and Security #1?  Check out:

Private notes-Income and Security #2

Private notes-Income and Security #3

Private notes-Income and security #1


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Private Lending Warning #5


Private Lending Warning #5…FAKE OWNERS

How would you like to lend someone money on a property that you think you’re in a good, secure position with? But then you find out they never owned the property to begin with?

Trust me, it happens.

Everything looks great until payments don’t arrive, and you hire an attorney to foreclose on the property. That’s when you find out the borrower never owned the property and had no right to put a lien on it. Worse, if a lien was actually placed on the property that someone else owns, you will have the extra cost of releasing the lien.

Believe it or not, there are brazen thieves in the world who will fake ownership in properties. They might rent and/or borrow money on them.

So, where does that leave you and your money?

Unfortunately, by the time you discover all of this, most or all of your money will be gone. You’ll probably never find the person who stole it. If you do, they will likely have spent it all.

How do you protect you and your money from a fake owner?

Most thieves are always looking to talk you into a shortcut.

They will tell you, “It’s just a waste of money to involve outside resources for a simple process like a loan.” After all, you both can go right down to the county and record the mortgage or deed (aka, the lien). You can literally watch them hand the lien over to the county and get a receipt to prove it’s recorded.

Guess what?

The county does not check who owns the property when an item is recorded. They simply record what’s handed to them.

So, great. They recorded the lien, but the lien is not valid, and your money is not secured. More likely, it’s gone.

This is another reason you should involve outside resources on such a large money transaction.

The key to stopping thieves is to require every loan be closed, insured, and recorded by a title company. A title company will check and verify the borrower actually owns the property and you’re in the lien position you’re expecting.

If a thief is good and brazen enough to fool the title company, the title company will pay you back your money and write off the loan. But this only happens if you actually pay for a title insurance (aka, a loan title policy).

Title insurance gives you peace of mind that your loan is secured and valid.

Most thieves will never agree to this because they know they’ll get caught. To avoid getting caught, they will try talking you out of purchasing title insurance. They usually do this by pointing out the costs and time involved.

Regarding these so-called costs: If a borrower goes to a traditional lender or bank, they will pay thousands of dollars more than a private lender. So, the cost of title is on the borrower, not you. If they don’t want to pay for title insurance, then fine. They can find another lender and you can find a better borrower; someone who’s grateful and happy to pay a little extra to ensure your funds are secure.

Never listen to a borrower if they claim these costs are nonessential. A quality borrower will be focused on protecting your money by using third party resources, like a title company to close and record.


Check out:

Warning #1

Warning #2

Warning #3

Warning #4


Private Lending Warning #5

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Private lending marketing system

Where to find more loans than you could ever fund, or ever want to.


The Simple Private Loan Marketing System

You’ll be surprised by how quickly people will start calling and asking you to lend them your money.

Truly, it’ll shock you.

Private Notes for Beginners

So, if you’re worried about being loan-less, don’t. You’ll have plenty to pick from.

It won’t be about finding people to talk to you. It’ll be about sifting through and figuring out the loans and deals that are good for you.

Start where the demand is and the loans can be secured…real estate investors.

Lets keep this simple and just the top five ways to find private notes.

  1. Join the meet-ups.  One or two posts will typically be all you need.
  2. Talk to local property wholesalers.  Quick Google search will help you locate them.
  3. Call other private money lenders.  They always have deals they can not fund.
  4. Check with you local small community bank.
  5. Post on places like

Here is the secret…there are more people looking to borrow money than there are active lenders.  So be selective and only fund loans you feel are good solid investments.

Before you start lending have a plan for your money and what terms you are willing to offer.  Don’t go looking for private notes until you know your ideal loan and borrower.

If you have a question or need help finding good secured notes you can reach out to us and we would be glad to assist.  You can reach out to us through the contact us form located at the top of the page.

Be careful and read about the some of the big warnings before you start.


The Simple Private Loan Marketing System

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