Conceptually, private money lending isn’t difficult to grasp. Chances are, you already understand the basics of a loan transaction. If you’ve ever purchased a home or a car, you’ve witnessed the essentials of the process. A lender agrees to allow a borrower to use their money for a specified purpose and period of time, and the borrower agrees to pay a specified rate of interest to the lender for the use of that money. In a secured transaction, the borrower also must provide the lender with collateral that can be liquidated or sold in order to repay the loan in the event that the borrower should fail to meet its obligations.

For more on the basics of private money lending, you can download the MMG Capital Guide to Trust Deed Investing. Or, request an Investor Kit and become a Priority Investor to receive a free hard copy.