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Tips For Starting Your Own Private Lending Business
Focus on a single region or area. When it comes to private lending, the most successful businesses are the ones that serve a specific local region. Ideally, all of your clients should be located within a 100-mile radius of where you have set up shop. Keeping all of your business in a local region like this allows you to become intimately familiar with the market, which can help you make smarter decisions. At its core, private lending is an investment-based business model. By sticking to a region that you know well, you are less likely to make risky decisions. As an example, our business is based in Northern California. Because of that, we typically don't accept applications from borrowers in Southern California. Market yourself based on your average funding capacity. If most of the investments that you make fall between $50,000 and $250,000, you should use that range in all of your marketing materials. Ideally, the clients that you want to attract are the ones that you are best set up