Learning How to Make Money and Reduce the Risk
Private money lending can put you on the fast track to real estate wealth. As long as people have staked claim to land, real estate has been a great investment. So it makes sense that the first market investors seek to invest in is real estate. Considering that land is a finite commodity, in other words the land we have is all that we’re going to get, even when the market is down, real estate investing is still a great bet.
However many people are rather shortsighted when it comes to entering the field and only look to buy parcels of land or become landlords – that’s too bad because the real money in real estate is not in ownership of land or building – it’s in the control of the financing that lays beneath it.
If you really think about it there is a reason why banks are not landlords, it’s really too much work. You have to find and qualify tenants; there are day-to-day maintenance issues, personality conflicts and a host of other details that can really suck the enjoyment out of your investment. Furthermore, it may take years before you realize any return on that initial investment.
As a private money lender, you will lend money to other investors and realize an immediate return of 15% or more immediately. These loans can yield a return of 15% or more within six months. I know that may seem too good to be true and in any other field it may be.
However as a short-term lender serving other real estate investors, these deals are structured to be quick and profitable to both you and the investor by saving the time and expense of going through traditional conventional lenders you are rewarded with a swift and attractive return. Private money financers have been supporting the real estate market for years.
By providing the financing for the deals that don’t qualify for conventional financing these private lenders are in the position to inject money into the real estate market and get things moving again while increasing their own net worth. The market opportunities right now has never been better. Many investors are wondering if there is any good money left in real estate investing. Of course there is as a private rehab lender!
Due to the recent housing downturn there are an abundance of properties that can be snatched up for less than half of their value. Unfortunately, many banks aren’t lending money and the ones that are lending have strict requirements that automatically disqualify many distressed properties. This is where you as a private rehab lender can realize a very attractive yield on your investment dollar.