Can you make money as a private lender?

Can you really make money by being a private lender? It seems like an attractive option, but is it feasible in today's market? Are there any risks involved? How do you go about finding borrowers and setting up the lending agreement? And most importantly, how do you ensure that you're getting a fair return on your investment? I'm curious to know if private lending is a viable way to generate income, and if so, what steps should I take to get started?