Ep. 90 | Should You Lend Your Own Money? The Real ROI of Investing Personal Capital in Private Mortgages

In this episode, Ryan and Neal delve into one of the most crucial decisions a private lender can make. Should you invest your capital, or stick with using other people's money (OPM)?

They explore how lending your funds can significantly boost your returns, improve flexibility, and build investor trust. In this episode, Neal and Ryan break down when it makes sense to deploy your cash, the risks involved, and how to structure deals smartly.

If you're a private lender, broker, or investor looking to take your business to the next level, this episode is for you! Listen and enjoy the show!

Show Notes:

02:30 - Halifax housing costs are now on par with Toronto

04:46 - The housing correction in Ontario

05:53 – Halifax’s real estate trends, military investment, and market structure

09:24 - Should you invest your own money in private mortgages?

10:25 - Traditional MEC model using investor capital and margins

11:32 – Lending your own money: fees, interest, and total ROI

13:12 – How to recycle capital with short-term loans

13:40 - $150K loan returns $12K in six months

15:25 - Key risks of using your own money 

17:20 - Mitigating the potential dangers of using your cash for lending

17:48 - Smart strategies: low LTVs, known borrowers, exit plans

20:21 – AB loan structures to boost returns while protecting investors

21:21 - Final thoughts on risk, return, scaling up, and lifestyle benefits

22:30 - Real estate investing is the same as private lending

Resources:

• Keystone Capital Group
• CPLP Instagram: @cplpodcast
• Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn

Find Ryan on:
LinkedIn
E-mail: ryan@keycap.ca