If you have capital to invest, you could generate interest on your money by becoming a private money lender… aka bank.
I’ve been reading up on it, and it seems like a good way to put money to work, especially if you’re not keen on traditional investment methods like the stock market. Private lending could offer better returns, and you get to set the terms. Of course, it comes with risks, but the potential seems worth exploring.
I’m curious…has anyone here ever done this or considered it?
I have some friends who do this by buying houses and then selling them with owner financing.
You can do this in a much safer way using decentralized finance. You lend stablecoins in a pool, and people use their crypto as collateral to borrow them. They pay you back over time.
If the value of their crypto drops too close to the borrowed amount, it’s automatically sold to cover the loan.
It us possible to be a broker by signing up with broker plan but it’s expensive.
It’s called usury. That’s illegal in most of countries.
I’ve thought about it, but I’m a bit worried about the risk of people not paying back. How do you make sure you don’t lose your money if someone defaults?
Av actually done private lending for real estate deals. It’s been a good experience so far, but I always make sure to have a solid contract and collateral. It’s not without risks, though.
Sounds interesting, but I prefer passive investments like index funds. Lending seems like it might require more involvement and legal know-how.
I’ve looked into it a bit. The returns can be great, but I’d be cautious about who you lend to. Has anyone tried it with platforms that handle the lending process for you?