How to Invest the Ancient Way: Private Lending
Since the beginning of time, people have needed money, and they’ve always needed to borrow it from someone.
Why not you?
You see, when it comes to making money in real estate, most people assume they have to fix and flip or rent properties. But there are other ways that don’t involve picking up a hammer.
And one of those ways is private lending.
What is private lending?
Private lending is exactly what it sounds like: you lend money to someone who needs it.
In the real estate world that means you lend it to someone who’s looking to fix up a property and either flip it or rent it.
It’s just like in the olden days when a person needed a loan and got it from a bank, a business tycoon, or a neighbor. Or just about anyone else who had money to lend.
So, how do you make money in private lending? Well, it’s fairly simple. You:
- Find someone you trust
- Create a secured, private note
- Collect interest payments.
Now, you might be thinking, “What is a private note?”
It’s basically an IOU.
Essentially, a private note is an agreement between you and your borrower, and it outlines things like:
- Loan amount
- Interest rate
- How long you’ll let your borrower use your money (aka, the term)
- And the date you expect them to pay you back in full.
And if a borrower can’t pay you back, then fear not. Your money is secured by the property. So, as long as you do your homework and make sure it’s a worthwhile investment, then your money is safe.
And if you’d rather someone else do the homework, including prepping the private note and overseeing the life of the loan, then you can use a licensed and experienced company like ours to handle it. All you have to do is kick back, relax, and watch your interest payments arrive in your bank account.
Ready to talk about investing your money in real estate without picking up a hammer? Great! Our team is always here to chat.