CalculateRealEstateROI

Strategy

Private Money Lending

Lending capital to other investors at 8–12% interest, secured by deed of trust on specific property.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Underwriting

Loan-to-cost cap (typically 70%), borrower experience, exit strategy.

Documentation

Promissory note, recorded deed of trust, title insurance.

Examples

  • $100k loan at 10% interest-only, 12-month term, secured by $150k ARV property.

Practical applications

  • Retirees seeking yield.
  • Investors with idle capital between deals.

Common mistakes

  • Lending without title insurance.
  • Underwriting borrower without verifying track record.