In this episode, mortgage agent Reshma Shaik discusses the dark side of private lending, focusing on Ponzi schemes and financial scams that have affected many investors. Elizabeth explains why these scams occur, touching on common mistakes such as over-leveraging, inadequate due diligence, and lack of financial oversight. They emphasize the importance of understanding loan-to-value ratios, knowing your position on a property, and seeking professional advice before investing. Elizabeth shares personal experiences and offers advice on safeguarding investments, including the risks associated with promissory notes, the importance of securing legal support and conducting thorough due diligence. They conclude by discussing how individuals can recover from financial losses by focusing on health, cash flow, and future opportunities, encouraging listeners to explore small business ventures for additional income streams. 00:00 The Dark Side of Private Lending 03:50 Understanding Ponzi Schemes in Real Estate 06:24 The Risks of Over-Leveraging 08:54 The Importance of Due Diligence 11:37 Learning from Mistakes 14:45 Navigating Financial Recovery 16:59 The Role of Promissory Notes 19:41 Finding Solutions After Loss 22:41 Starting a Business for Cash Flow 25:13 Building a Support Network 28:00 The Importance of Asking Questions 30:18 The Need for Financial Literacy 32:57 The Future of Real Estate Investing