I’ve talked a lot about the advantages of being a Private Money Lender (PML), and they are many:
- You make many times the interest you would on a CD or other bank instrument.
- Your investment is secured by real property—something tangible.
- You’re in a debt position, as opposed to an equity position, if something goes wrong with the borrower.
- Lenders get paid before equity stakeholders when the property is liquidated.
- And many, many more.
Today, I want to give a bit of cautionary advice.