Private lending can be a safe and profitable way to build wealth if you know how to judge the risks. But even experienced lenders sometimes get uneasy when a deal doesn’t feel right. Knowing when that feeling is valid can help protect your money and keep your lending decisions smart.

In this episode of Growing The Money, Rich Lennon shares the key questions private lenders should ask before funding a deal, especially when the money isn’t going directly into the property. He explains how to evaluate the borrower, why free-and-clear assets matter, and the number one rule: protect your money first. Rich also breaks down how to spot red flags when borrowers come back for more and the simple legal tool every lender should know, the Substitution of Trustee.

You’ll Learn How To:

• Evaluate when it’s safe to lend against a free-and-clear property
• Decide whether to approve loans not used for property improvements
• Understand when it’s okay for borrowers to hold funds longer than planned
• Use the power of compounding to grow your returns faster
• Navigate the substitution of the trustee and foreclosure procedures with ease

Who This Episode Is For:

• Private lenders looking to strengthen their decision-making process
• Real estate investors managing or considering private lending deals
• New lenders are learning how to assess risk and protect their capital

Why You Should Listen:
Smart lenders know lending isn’t just about high returns. It’s about keeping your money safe. Knowing when to lend, how to protect your position, and how to handle unexpected borrower behavior can make the difference between steady growth and avoidable problems. This episode helps you identify the moments when being cautious isn’t fear, it’s just smart.

What You’ll Learn in This Episode:

[00:00 ] Why your number one focus should be loan security

[03:00 ] Lending on free-and-clear properties can work well if structured properly

[04:00 ] Watch out for borrowers with inherited or unearned assets

[05:00 ] Always lend in first position — second position puts your money at risk

[06:00 ] Longer loan terms can be fine if your security is solid

[07:00 ] Collecting regular interest payments helps you build steady returns

[08:00 ] How a substitution of trustee can protect you in a foreclosure

[09:00 ] Why choosing the right trustee matters and how to change them if needed

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