Private money lending has become a hot topic over the past few years. With rising equity and asset prices, more lenders have come out of the woodwork, and an equal amount of investors have sprouted up to match the need. But taking on private money isn’t a light decision, although most investors think of it that way. Doing a deal the wrong way could put your reputation in jeopardy and rack up an expensive bill you’ll need to pay back.

Before you accept (or lend) private money, there are a few things you should know. But you don’t have to go through trial and error to figure them out! Back on part four of this private money series is Amy Mahjoory, investor and private money expert. Amy goes into the nitty-gritty of private money, from debating debt vs. equity to the risk of raising capital, protecting your investors, and the type of interest rates you can charge and returns you can expect.

If you haven’t raised or lent private money before, we recommend watching the entirety of this four-part series, as it answers crucial questions that rookies can often overlook. We also follow up with some Q&As from the comment section about how to pay a private money lender back, why coaching is seen as scammy, and the three documents you’ll need to do a private money deal.