How does private lending work?
A private lender funds a specific real estate transaction under negotiated terms. Before funding, review the borrower, property, budget, repayment plan, and written loan documents. Each opportunity has different terms and risks.

What should I review before deciding?
Ask for the property address and valuation support, purchase and renovation budgets, the borrower’s experience, a realistic timeline, insurance details, title work, and a clear exit plan. Confirm who will manage the project and how you will receive updates.

What documents usually define the loan?
A promissory note states the repayment terms. A mortgage or deed of trust may secure the note against real estate, subject to proper closing and recording. Ask your attorney and title or closing professional to explain lien position, insurance, and any other claims before funds are released.

Are returns or principal guaranteed?
No. Borrowers can miss payments, projects can exceed budgets or take longer than planned, and property values can fall. Collateral and a lien may provide legal remedies, but recovery can take time and money and may not cover the full loan. Do not commit funds you cannot afford to tie up or lose.

How are interest, timing, and repayment set?
They are negotiated for each loan and documented before closing. Ask whether interest is paid during the term or at maturity, whether extensions or early payoff are allowed, who pays fees, and what happens if the sale or refinance takes longer than expected. We do not quote a standard return or minimum contribution on this educational site.

What happens if a borrower defaults?
The written agreement and applicable law govern notices, cure periods, and remedies. A secured lender may have foreclosure or other rights, but lien priority, property value, senior debt, costs, and timing affect recovery. Ask an independent attorney to review the documents and risks.

Can I lend using a self-directed IRA?
Some retirement accounts may hold certain alternative assets, including notes, through a qualified custodian. Eligibility, custodian rules, fees, tax treatment, and prohibited-transaction rules matter. Speak with your custodian and independent tax and legal advisers before moving retirement funds.

What is the next step?
Review the free audio and one-page overview, browse our finished projects, then book a discovery call with Kevin. A conversation is for education and fit; any specific opportunity requires its own documents and independent review.