Why the Best Private Lenders Know Construction Before They Know Finance with Mike Seidl| 83

In this episode, I sit down with Mike Seidl — serial entrepreneur and private money lender — to break down what separates true private lending from the hard money world Wall Street funds. Mike has built three businesses across four decades, from medical alert systems in 1987 to a property damage construction company, to now deploying millions of his own capital in private real estate loans.We get into how Mike's construction background gives him an edge most lenders don't have, how he structures draws and protects his investors, and why he walked away from Wall Street after nine months of research he couldn't poke holes in. If you're looking to understand private lending from the inside out, this one's for you.⸻Episode Highlights[1:14] – Mike's intro: private money lender, serial entrepreneur, three companies over four decades[1:55] – Company #1: Medical alert systems started at age 23, sold after ten years to a public company[2:36] – Company #2: Property damage construction company doing 250–300 repairs a year, sold in 2017[3:45] – The Wall Street wake-up call: nine months of research that led Mike to pull millions from the stock market[5:11] – Hard money vs. private money: why the distinction actually matters for borrowers[6:22] – Expanding beyond single family: mobile homes, small multifamily, and rescue loans[8:51] – How Mike's lending community grew from personal capital to friends, family, and outside investors[10:48] – How due diligence has evolved: network-based reputation checks, PropStream, Redfin, and RealtyValue[12:42] – Why his construction background lets him catch what other lenders miss on scopes and photos[14:57] – A real example: catching an incomplete tile job by reading photos and calling the bluff[16:31] – Loan structure basics: 80% of purchase, 100% of repairs, max 70% all-in combined[17:24] – Cross-collateralization: how borrowers can lend 100% without coming to the table with cash[18:13] – Draw process: geo-tracked photos, before-and-after comparisons, and 48-hour fund release[20:22] – Terms, rates, and why interest-only loans with ACH debits keep everything clean[23:03] – Why 24% annualized is still a win for borrowers who keep 100% of the equity[23:22] – Documentation: notes, mortgages, personal guarantees, title insurance, and liability coverage[26:05] – What happens if a loan goes sideways: how Mike would manage or exit a foreclosure property[27:53] – Construction gem: how to find good contractors by asking whoever follows them[29:20] – Why borrowers don't need 25% down to pay contractors — and what to do if they ask for it[32:20] – Mike's entrepreneurial origin story and what's potentially next: flex space on a triple net lease[36:10] – Why Mike will never stop working: blue zones, mental stimulation, and living on purpose[37:04] – 40 countries, whitewater kayaking, and diving between two tectonic plates in Iceland⸻5 Key TakeawaysTrue private lending means your own capital and your own decisions — no Wall Street buy box required.Construction experience is an underrated edge in private lending — you can catch what others simply can't see.Draw management and geo-tracked photo verification protect both the lender and the borrower.Stress-test every deal and every borrower — your network is one of the best due diligence tools you have.Wealth without health and purpose is incomplete — build income streams that fund the life you actually want to live.⸻Links & ResourcesREI Capital Guys – https://reicapitalguys.com/Email Mike: [email protected] Topics: Private vs. hard money lending, draw management, cross-collateralization, fix-and-flip loans, rescue loans, multifamily bridge lending, blue zones⸻If this episode gave you a clearer picture of how private lending actually works — or inspired you to think bigger about building income around your life — make sure to follow, rate, review, and share the show.