The Basics of Private Real Estate Lending
3.3 (24 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
611 students enrolled

The Basics of Private Real Estate Lending

Learn the basics of how to invest in real estate without the mess of managing properties
3.3 (24 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
611 students enrolled
Created by Dan Schwartz
Last updated 10/2013
English [Auto]
Current price: $34.99 Original price: $49.99 Discount: 30% off
5 hours left at this price!
30-Day Money-Back Guarantee
This course includes
  • 33 mins on-demand video
  • 2 articles
  • 1 downloadable resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
Training 5 or more people?

Get your team access to 4,000+ top Udemy courses anytime, anywhere.

Try Udemy for Business
What you'll learn
  • Learn the benefits of private lending
  • Walk through a REAL-LIFE private money deal
  • The anatomy of a private money loan
  • The paperwork you should be familiar with
  • Which real estate investors to work with
  • Learn what happens if you are not paid back
  • Discover the type of funds you can use for private lending
  • Best practices for lending out of your retirement accounts
  • Basic financial knowledge

Did you know you can become the bank and lend money for real estate purchases?

Did you know you can earn interest completely backed by real property as collateral?

Did you know you can invest in real estate out of your IRA and earn passive income completely TAX-FREE?

  • Learn all this and more in this comprehensive guide outlining the basics of private mortgages.
  • Learn from an investor whose company has borrowed close to $1,000,000 in private funds for successful real estate acquisitions!
  • See an entire real life private money deal from start to finish.

We will discuss WHY private lending works and how real estate investors can afford to pay higher rates of interest than what you may be used to earning.

Cash is king in the new real estate market, and private lenders are certainly cashing in on a unique opportunity to make highly secure, profitable investments. Take control of your life savings instead of leaving it to the whim of the stock market.

See you on the inside!

Who this course is for:
  • If you're sick of inconsistent, low rates of return on your hard earned money, you should familiarize yourself with private mortgage investing
  • If you don't want to put the fate of your savings at the whim of the stock market
Course content
Expand all 24 lectures 37:47
+ Welcome
3 lectures 07:56

Welcome to your crash course in private lending.

Feel free to email us anytime at

or you may reach us at 443-848-8028

Please read the disclaimer section at the bottom of the course curriculum.

Preview 01:20

Learn why the economy has given us a golden ticket to get involved with private mortgages for real estate.

Preview 03:23

We truly walk the talk! Our investing business in Baltimore has been around since 2010 and we've done over 100 transactions of all different shapes and sizes, including close to $1,000,000 in successful private money deals. We currently own rental properties throughout the city and in the middle of renovating several other for retail.



Office: 443-848-8028

Preview 03:13
+ Private Mortgage Lending 101
5 lectures 07:40

What makes a private money loan different from a regular loan? Let's talk basics first before going into the details.

Preview 01:15

Find out if you fit into any of these categories.

Preview 01:05

How are investors able to pay private lenders higher rates of returns? It's all about the real estate...

WHY Does This Work?

This is a quick summary of a private money deal from start to finish.

It's much simpler than you think. Don't forget to ask questions!

What is the Process?

1. Promissory Note

2. Deed of trust (mortgage)

3. Insurance policy

What Documents Do I Need?
+ Example Private Money Loan
3 lectures 03:23

To summarize:

We purchased and renovated the property using a short term private lender's funds. After renovating the property, we put a tenant in place, then applied to refinance the house with a traditional bank for a longer term loan.

When refinancing, typically bank will lend you up to 60% of the value of the property. This bank gave us a little less, but it was enough to pay off our initial private mortgage lender + their interest.

The best investors acquire properties at steep enough discounts to ensure the security of their investors. If the numbers don't make sense, we won't do the deal.

For more information about other deals, shoot me an email to and I'd be happy to explain further. It's important to have a full understanding of this process so you know your funds are secure.

Example Deal: The Alameda

Page 1: Buy-Side HUD-1 Settlement Sheet. You will see the purchase price and amount of private money loan circled on this document.

Page 2: Deed of Trust (Mortgage). You will see the loan amount circled. This document is recorded in the official state land records.

Page 3: Appraisal: At the bottom of the page, you will see the amount the property appraised for to give you an idea of the amount of equity our lender had backing the loan.

Page 4: Refinance HUD-1 Settlement Sheet. This is how we paid our private lender back. You will see the total payoff amount circled, which included their principle + interest.

*Lender name blacked out for privacy reasons*

Private Money Paper Trail
4 pages

This simple diagram will give you a visual representation of how a private loan will outperform traditional forms of investing.

Private Loan vs. Traditional Savings
+ Funding
2 lectures 03:44

Most people don't know that you can lend money out of your IRA or 401K. Traditional IRA custodians don't want you to know this because it does not benefit them (or the mutual fund companies). Learn about different funding sources on this lecture.

Where Do Funds Come From?

Self-Directed ROTH IRAs are the most powerful retirement investment vehicle for those that want to be in control of their money. Learn how to use them and how simple they are to create in this video.

Be sure to check out and for more information about how to start your self-directed Roth IRA or roll over your traditional IRA into one.

Self Directed IRAs
+ Frequently Asked Questions
7 lectures 06:37

If the investor defaults, private lenders DO have options. If the investor buys cheap enough, they can end up taking ownership of a high-equity house that they can resell for a profit. Be sure to choose the investors you work with by speaking with their other lenders and making sure they have a solid track record.

What Happens If Investor Doesn't Pay?

How much do private lenders lend? We discuss this briefly here. It all comes down to the real estate investor's particular business model.

Is there a Minimum Investment?

We don't recommend it, but there are ways to get your money back early. It is not ideal.

Can I Liquidate the Loan?
Who Handles the Details/Paperwork?

There are several ways to structure how exactly you will get paid your interest and principal. Learn how here.

How Do You Get Paid?

Short term vs. long term? You have options.

Can I Make Long-Term Loans?

Please contact us at or reach our office at 443-848-8028.

Any Additional Questions?
+ Benefits of Private Lending
2 lectures 03:30

The benefits of private mortgage lending. This is just the tip of the iceberg!

What's In It For You?

Please read the disclaimers on the next page!

Final Thoughts
+ Disclaimers
2 lectures 00:57
Consult Legal Advice