Let’s talk about something that holds a lot of people back from ever doing their first private lending deal:

Fear.

Fear of losing money.
Fear of a deal going sideways.
Fear of not knowing what you’re doing.

I get it. When you’re new to something, especially something involving your capital, it’s natural to feel unsure.

But here’s the truth:
Most of the common fears about private mortgage lending are based on myths, misinformation, or lack of education.

Let’s break a few of them down.


Fear #1: “What if I lose all my money?”

When done correctly, private lending is backed by a recorded lien on real estate. That means you’re secured by a hard asset — just like a bank would be. If the borrower doesn’t perform, you have legal recourse to recover your investment.

Lenders who lose money usually skip the fundamentals:

• No title insurance
• No equity cushion
• No recorded documents
• Lending directly to a borrower without closing through a title company

If you follow proper protocol, you dramatically reduce your risk — and position yourself to potentially profit, even if a deal goes off track.


Fear #2: “What if the borrower defaults?”

Most people think default = disaster. But when a deal is structured the right way, default often leads to a better financial outcome for the lender.

I’ve had lenders foreclose on properties (not mine!) and actually end up making more than if the loan had been repaid as agreed. Why? Because they lent with the right equity cushion and secured position from day one.

The truth is, if a deal defaults and you’re in first position with solid collateral — that’s your “safety net with upside.”


Fear #3: “I don’t know enough to do this yet.”

Everyone starts from zero. The difference is education.

In my book, The Private Lender Playbook, and in our weekly content, we lay out exactly how to analyze deals, work with borrowers, and set up your lending documents. You don’t need to be a financial pro — you just need to follow a proven process and surround yourself with trusted partners.


Final Thoughts

Here’s the good news: fear is a signal — not a stop sign.

If you’re asking the right questions, getting educated, and working with integrity-driven borrowers, private lending can become one of the most predictable, profitable, and secure investments in your portfolio.

And if you’ve got fears or doubts? Good. That means you care. Just make sure you’re learning from the right sources — not the loudest voices.

👉 Ready to learn more about how private lending can work for you? Let’s talk.