Tips for Successful Private Lending | Avoid Lending to Friends & Family | Loan Portfolio Diversification & More
In order to be a successful private lender, there are a few things to avoid. First, do not lend money to friends or family. Secondly, make sure to diversify your portfolio by lending to different types of people and businesses. Third, do not put all of your eggs in one basket by lending too much money to one person or entity. Fourth, do not let emotions get in the way of making smart lending decisions. Finally, make sure to keep good records and communicate often with your borrowers. By following these tips, you will be well on your way to becoming a successful private lender.