Private Lender | Here is How to Become A Private Lender
Keith Baker began painting houses in high school and worked construction through college, renovating houses in addition to performing rental make readies and rehabbing flips for investors while earning a degree in Philosophy and German. He never took a class in real estate, finance, accounting or business. Everything he’s learned about business, real estate, and lending has been through practical experience: successes and failures.
He started his own construction/general contractor company after college. After closing his contractor business, Keith worked as a Construction Manager at McGuyer Home Builders (Pioneer and Plantation Homes). When the housing market peaked and began to crumble, he jumped head first into a field position with an oilfield service provider: Schlumberger and then parlayed my oilfield knowledge into a career as an energy loss adjuster.
When Keith decided to invest in real estate, he hadn’t yet developed the confidence to speak to sellers, so he bought his first investment property from his parents, just to get things moving. He and his wife then house hacked their way through their starter home, which we slowly flipped for a nice profit. Then Keith decided it was time to become a landlord, which was a painful experience.
Because he travels so much for a day job that he actually enjoys, Keith converted an old 401(k) into a self-directed IRA (with Quest IRA) and began private lending to local real estate investors to keep himself in the real estate investing loop, close to the action, and to expand his network. Through private lending, he bought my first rental property from a potential borrower and met his partner, Landon. Together he and Landon formed Asset REI, which focuses on providing owner financing for both buyers and properties that are neglected and overlooked by the conventional “too big to fail banks.” Thus they become the bank!
What you’ll learn about in this episode:
- How you can be a private lender
- Keith’s past and the path that led to him becoming a real estate investor
- The deal that got Keith started in private lending, and how the process works
- How you can be involved with rehab without taking the associated risks
- Different scenarios and types of loans Keith works with
- Why investing in real estate can be a better option than the stock market for many people
- How to mitigate the risk in real estate investing
- Why it has been tough to find good deals lately
- An example where foreclosure wouldn’t be a good option
- Why loaning money can be easier and more effective than renting
- The least active way to earn money in real estate
- How Keith turned his dream and passion for teaching into a reality
- Why everyone could benefit from having more private lenders in business
- The two rules Keith teaches all his students
- Why you should never be afraid to say no
- How Keith plans to scaffold his education business to ensure quality
- Avoiding the trap of the imposter syndrome