{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Infinite Banking Daily","title":"Episode 262: The Risk Mistakes New Lenders Make","html":"","width":"100%","height":180,"duration":223,"description":"Discover the five risk mistakes new lenders make—and how to avoid expensive lessons most learn the hard way—because knowing what not to do is just as important as knowing what to do when using your family bank for private lending. New private lenders get excited about returns skip fundamentals and learn expensive lessons, here are five biggest mistakes to avoid: First, lending to friends and family without proper documentation, you think you don't need promissory note because you trust them, then deal goes sideways relationship destroyed and you have no legal recourse, always document always even with family especially with family. Second, accepting second lien position because rate is higher, yes second position pays more because it's riskier, in foreclosure first lien holder gets paid first you only get paid if there's money left over there usually isn't, first lien position or no deal. Third, lending on borrower's story instead of numbers, borrower has great track record compelling vision solid reputation, none of that matters if loan-to-value ratio is eighty-five percent and there's no equity cushion, lend on asset and numbers not story. Fourth, no clear exit strategy, you ask how loan gets repaid borrower says I'll refinance or I'll sell, that's not plan that's hope, real exit strategy has specifics which lender are they refinancing with what's timeline what's backup plan if that doesn't work, no clear exit no loan. Fifth, overleveraging your own system, you have three hundred thousand in cash value so you take three hundred thousand dollar policy loan and lend it all on one deal, now you have zero liquidity and all eggs in one basket, never deploy one hundred percent of available capital keep reserves diversify across multiple loans protect your liquidity.\nWhat You'll Learn:\nMistake One: No Documentation with Family – Lending to friends and family without proper documentation, you think you don't need promissory note because you trust them, then deal goes...","thumbnail_url":"https://img.transistorcdn.com/NE9muFKf7ob9eJssBmXNvja0j-xOQGU8j1nPuVS77pI/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9jMjYz/MDY2M2Q1N2Q2YTA5/OWZmMWM4NTQwYzhi/Y2JiNi5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}