Brant: Hey everybody, I’d like to welcome a good friend of mine and a longtime lender, Dave. Dave, how are you doing?

Dave: Doing great, Brant. Great to be here.

Brant: Thanks for hopping on. For those watching who are considering private lending, can you share what first drew you in? And give us some context—when was your first loan?

Dave: Our first loan was probably close to 10 years ago. My wife and I have always been interested in real estate. We have relatives in the business, so we had a lot of support and exposure. We started learning about how deals are structured and decided to take the plunge. There was a lot of hand-holding early on, but we started by lending out of our IRA.

It’s been a very fruitful endeavor. We’re not chasing sky-high stock market returns—we’ve always wanted steady, reliable returns. Our priority has always been understanding the deals we’re involved in and working with people we trust.

Brant: What were some of the fears you had early on?

Dave: Understanding how the process really worked. We’d bought homes before and even had one rental, but that surface-level knowledge wasn’t enough. I had to learn about title insurance, surveys, the document process, and more. You have to educate yourself, or you’re flying blind. If I don’t have a comfort level, it’s hard for me to move forward.

Brant: That makes sense. Unfortunately, there are bad actors in the industry—borrowers with poor plans or inexperience—and that can hurt lenders. But you can safeguard yourself with the right due diligence. Roughly how many deals have you done?

Dave: I’d say between 30 and 40 deals. Most of them have been with you, Brant. We’re still actively doing deals together. After we sold a business and had some cash, we invested heavily with you, then eventually branched out into our own real estate projects—Airbnbs, funding a local builder’s new construction, and more.

Brant: That’s awesome. Of course, not every deal works out perfectly.

Dave: True. Market timing can shift quickly. We’ve had a few projects that didn’t go as expected, but that’s part of the journey. What matters most is knowing who you’re dealing with. When things go sideways, you need partners who do the right thing. That gives me peace of mind—knowing I’m working with people of integrity who follow through.

Brant: Have you ever had a borrower not perform?

Dave: No, we haven’t.

Brant: That’s huge. Real estate isn’t always easy. It can be great or it can be a nightmare—it’s not for the faint of heart. But if the borrower has the mindset to fix problems and push through, you can weather tough markets. It’s also about evaluating the borrower’s experience and having multiple exit strategies.

We focus heavily on affordable housing for that reason. We can flip, rent, owner finance, or Airbnb. Having options is key in lean times.

So, Dave, what advice would you give to someone brand new to private lending?

Dave: Educate yourself as much as possible. Read books, talk to people in the industry—realtors, builders, title companies. There’s so much to learn about how deals actually work, and you need to understand that to know what to watch for.

I don’t consider myself an expert, but I know who to turn to when I have questions. Also, be realistic. A lot of people sell flashy deals that sound too good to be true—and they often are. There are great salesmen out there, but not all have a solid track record.

Real estate gives you more control if you understand it. You can see all the pieces of a deal. With the stock market, you have no control. You’re just hoping it works out.

Brant: That’s well said. Private lending isn’t just set it and forget it. You need to be actively involved in the process.

Dave: Exactly.

Brant: Dave, I appreciate your time and your wisdom. I know the people reading or watching will get a lot out of this.

Dave: Happy to help, Brant. It’s always a pleasure working with you. I’ve really appreciated our relationship and getting to know you.