Episode #56

Never a borrower nor a lender?

Another way to (indirectly) make money from property is to lend money to others who need financing for development projects. Alternatively, you might be looking to borrow from private individuals in order to do more deals without relying on expensive bridging finance.

In this episode, I talk about my recent experience of lending money out. If you've got spare cash on the sidelines, I cover how to lend safely and reduce your risk as far as possible. On the other side, if you want to raise private finance, it will give you an insight into how to structure the arrangement and allow the lender to be confident that their interest is protected.

Listen to this week’s show and learn:

Note: This discussion is limited purely to loans where a fixed percentage return is offered, irrespective of how well the project goes. “Joint venture” agreements (where, for example, profits are split) are entirely different and require an understanding of PS13/3.