What is a Private Note?
Categories: Blog Posts
What is a Private Note?
You have a variety of options when it comes to making money for retirement.
The most obvious and popular ways are retirement saving accounts and the stock market. But retirement saving accounts can be questionable, and the stock market constantly fluctuates up and down.
But, fear not. Did you know there’s another, more secure way to save up for your future?
We’re talking about investing in private notes. They’re an easy, lucrative method to boosting your cash flow…and your retirement funds.
You see, when people think about investing in real estate, they assume they have to fix and flip or rent properties. But private notes allow you to make money in real estate without ever picking up a hammer.
Basically, you become a bank for a fix and flipper or a rental owner.
But what is a private note?
Well, in a nutshell, it’s an IOU.
Essentially, a private note is an agreement between you and your borrower, and it outlines things like:
- How much money you’ll lend.
- The amount of interest you’ll charge.
- The length of time you’ll let your borrower use your money.
- And the date you expect them to pay you back in full.
And if you’re thinking, “Well, what if they can’t pay me back?”, then don’t worry. 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 sound.
Now, how do you actually create a private note?
Well, the easiest way is to work with a company like ours. In addition to creating a secure private note on your behalf, we help with all the other steps to private lending. Those include:
- Finding real estate investors who need funding.
- Interviewing them and reviewing their portfolio to determine how much you can trust them with your money.
- Analyzing properties to make sure they’re worth the investment.
- Handling escrow draws.
- And overseeing the life of the loan, including all payments, extensions, and modifications.
Of course, if you’d rather handle all of those steps by yourself, then you can simply hire an attorney to create your private note.
Bottom line, private notes are an excellent way to prepare for retirement, especially if you want to invest in real estate without breaking a sweat.
Ready to talk about investing your money in private notes and securing your future? Great! Our team is always here to chat.