Let’s be honest—if you’ve been feeling whiplash from the stock market lately, you’re not alone. One minute it’s climbing, the next it’s tanking, and even when things look stable, there’s always another headline or political move that sends it swinging again. For those of us trying to build long-term wealth or secure a decent retirement, that kind of volatility makes it hard to sleep at night.
That’s why more and more people are looking beyond the typical Wall Street route—and private lending is quickly becoming one of the smartest alternatives out there.
Now, if you’re not familiar with private lending, here’s the basic idea: instead of putting your money into the stock market and hoping for the best, you lend it directly to real estate investors. They’re out there buying properties, renovating them, flipping them, or refinancing—doing all the hands-on work—while you provide the funding and earn interest. You’re basically acting like the bank, but on your own terms.
And here’s the best part: these loans are short-term—think a few months to a year or two. You’re not locking up your money for decades like with a traditional mortgage. Plus, you’re usually earning way more than what a bank would give you. We’re talking interest rates in the 10 to 12 percent range, depending on the deal. Compare that to the 4 or 5 percent a lot of people are getting from their IRAs or savings accounts, and it’s easy to see the appeal.
But it’s not just about high returns. These loans are secured by real estate, which means you’ve got collateral. If something goes wrong and the borrower doesn’t pay you back, you’ve got legal options—like foreclosing on the property and getting your money back that way. It’s a level of security you just don’t get when you’re buying stocks or crypto.
Speaking of IRAs, did you know you can actually use retirement funds for private lending? If you roll over your IRA into a self-directed IRA, you can use that money to fund private loans—and still enjoy all the tax advantages that come with retirement accounts. Instead of watching your retirement balance rise and fall with the market, you’re putting it into deals that you understand and control.
Of course, this isn’t a “set it and forget it” kind of thing. You’ve got to do your homework. You need to understand what the property is worth, whether the borrower has a solid track record, and what the plan is for paying you back. It’s not complicated, but you do need to be thoughtful and cautious—especially if you’re new to real estate investing.
And here’s a quick heads-up: while it might sound easy to just lend to a friend or family member doing a flip, that can get messy fast. Personal relationships don’t always translate into good business decisions. It’s usually better to work with experienced real estate operators who’ve done this before and know how to protect everyone involved.
If you’re someone who wants to be involved in real estate but doesn’t want to deal with tenants, toilets, or renovations, private lending is a great fit. You’re not managing properties—you’re managing your money. You get to decide which deals make sense for you, how much risk you’re comfortable with, and when to put your capital back to work.
Finding deals does take a little effort, though. Unlike stocks, there’s no app where you just click and invest. You’ve got to network, connect with real estate professionals, maybe join a local investor group or use a private lending platform. Over time, you’ll build a pipeline of opportunities, and you’ll start to develop a real sense of what makes a solid deal.
So, why consider private lending right now? Because while the markets might recover, the truth is, most of us can’t afford to keep gambling on “maybe.” We need options that offer real returns, with real security. Private lending gives you a way to grow your money without giving up control or dealing with the daily chaos of the stock ticker.
It’s not about ditching the stock market altogether. It’s about adding something smarter and more stable to your strategy—something that works in today’s world, not just in textbooks or retirement seminars from twenty years ago.
If you’re ready to start taking a more active role in your financial future, private lending could be exactly what you’re looking for. It’s simple, powerful, and best of all—it puts you in the driver’s seat.