What Every New Passive Investor Should Know About Lending

What Every New Passive Investor Should Know About Lending

If you're new to passive real estate investing, one of the most accessible and rewarding entry points is private lending. Instead of owning property, you act as the bank—providing capital to real estate investors in exchange for steady, secured returns. But before jumping in, there are a few things every new passive investor should understand.

1. You’re the Bank—Not the Landlord

As a private lender, you don't deal with tenants, toilets, or repairs. You simply provide funding for a real estate deal and earn interest on your money. The loan is typically secured by a mortgage or deed of trust, giving you legal rights to the property if the borrower defaults.

2. Your Investment Is Backed by Real Estate

This isn’t just an IOU. Your investment is tied to a physical asset—real estate. This collateral provides a layer of protection that makes private lending safer than many other high-yield options, like unsecured personal loans or speculative stocks.

3. You Can Use Retirement Funds

Many private lenders use self-directed IRAs or 401(k)s to invest. This allows your retirement savings to grow tax-deferred (or tax-free, in the case of a Roth), all while earning above-average returns.

4. Partner with Experienced Borrowers

Vet the people you’re lending to. Make sure they have a solid track record and a clear plan for the deal. Your confidence in the borrower is just as important as the numbers on paper.

5. Everything Should Be in Writing

Never proceed without proper legal documentation: a promissory note, mortgage or deed of trust, and title insurance. These protect your capital and clearly define the terms of repayment.

Private lending is a powerful tool for building wealth passively—when done right. Start small, ask questions, and partner with the right team.

Would you like to know more about investing passively from your IRA?   Contact Alex at [email protected] or call 501-580-2598

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Navigating Probate and Foreclosure: How I Help Families Through Tough Transitions

In recent weeks, I’ve been working more closely with probate cases—and with good reason. A surprisingly common trigger for foreclosure is the passing of a property owner. When this happens, mortgage payments often stop, and foreclosure proceedings can begin before the heirs even know what’s going on.

One of the biggest hurdles families face in these situations is a lack of understanding about the probate process. Many heirs don’t realize that in order to sell or transfer a loved one’s property, the estate must go through probate—a legal procedure that grants them the authority to act on behalf of the deceased. Unfortunately, the cost of this process is a major barrier, often running $5,000 or more in attorney’s fees.

That’s where I come in.

My mission is to guide families through these complex and emotional transitions. I help heirs understand their options, whether that means keeping the home or selling it. When the decision is made to sell the property, I often step in to help cover the upfront legal fees required to initiate probate. This allows families to move forward without the burden of immediate out-of-pocket costs, and it creates a path toward resolution and peace of mind.

Real estate isn’t just about buying and selling houses—it’s about solving problems and helping people when they need it most. And that’s exactly what I strive to do every day.

Would you like to know more about how to help families in difficult financial situations while growing your retirement nest egg? Contact Alex at [email protected] or call 501-580-2598