The Interest Rate Is The Wrong Question In Private Money Lending | Ep 143

<p>In this conversation, James and Jessi walk through the questions that actually matter when you&#39;re lending money on real estate. James breaks down why the difference between a 10% and 12% rate is often just a few hundred dollars, and why the smarter question is what your guaranteed minimum payout is if the loan gets paid off early. From there they get into why a capped, guaranteed loan can beat an uncapped equity position, what your lien position actually determines if a deal goes underwater, and why a lender takes a lien instead of just taking the deed outright.</p><p>They also cover why the person borrowing the money matters more than the deal itself, how extensions and early payoffs typically work (spoiler: you usually can&#39;t get your money back early, but the note itself can be sold), and what happens if either party dies before the loan is repaid. It closes with a pre-wire checklist: read the default and remedies section first, name every human signer, and remember you&#39;re not buying a rate, you&#39;re buying an exit.</p><p><br></p><p><strong>Chapters</strong></p><ul><li>(00:00) Introduction</li><li>(03:24) What Actually Counts as a Private Money Lender</li><li>(05:22) Why a 10% vs. 12% Rate Barely Matters</li><li>(06:51) The Minimum Floor: A Smarter Question Than the Rate</li><li>(10:38) Equity vs. a Fixed-Rate Loan</li><li>(12:51) Lien Position, Worst-Case Math, and Deed vs. Lien</li><li>(22:20) Underwriting the Borrower, Not the Deal</li><li>(24:17) Extensions, Early Payoff, and Selling Your Note</li><li>(28:34) Death, Disability, and the Pre-Wire Checklist</li></ul><p><br></p>