Posts

What is a Private Note?

Categories:

What is a Private Note?

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.

What is a Private Note?

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.

Happy investing!

by
Why You Can Be Thankful as a Private Lender

Why You Can Be Thankful as a Private Lender

If you’re thinking about becoming a private lender, then there are a few things you can look forward to being thankful for.

Make Money

First, the most obvious, can make money in an easy, secured way. You don’t have to pick up hammer, worry about contractors, or stress out about getting a big project done in a short amount of time. All you have to do is find people who like fixing and flipping and lend them the money to do all of that hard work.

Boost Retirement Savings

Second, you can take the money you make and boost your retirement savings. You don’t have to worry about unpredictable fluctuations in the stock market or depend on low interest rates at the bank. You can make consistent, solid income with a safe and secured investment.

Positive Impact

Third, and the least thought about, you can make an extremely positive impact on your community.

Without your ability to lend money to fix and flippers, rental owners, and other real estate investors, communities would slowly deteriorate and eventually fall into disarray.

Think about the HGTV show, Good Bones. A mother and daughter team up to fix homes that have aged and withered throughout their neighborhood. But, home by home, they’ve revitalized and given their community new life. They given it value, once again.

That’s what all fix and flippers do.

They find neighborhoods, towns, and cities that have fallen into disrepair, and breath fresh life into them. By doing this, they revive the economy because people want to live there again. Schools, safety, and quality of life rise drastically.

But the only way this all can happen is if fix and flippers can find money to do their work. And many of them can’t walk into a bank and get a loan, either because they can’t meet the bank’s strict requirements, or because they need to buy a property FAST. We’re talking about closing homes within days, not months. Banks can’t do that.

So, they need private funding from people like you. People who have money they want to invest.

So, why not invest it in your local community…or a community of your choosing? Say, the hometown you grew up in? Perhaps it’s seen better days and needs some new life before it fades and falls off the map completely?

Private lending is something you can truly be thankful for. So why not give it a try if you’re looking to invest in real estate the easy way?

by
How to Make Money in Real Estate: Private Lending is Ancient

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.

Happy investing!

by
How to Retire: Retirement Scares Me

How to Retire: Retirement Scares Me

Retirement is just around the corner. It’s tiptoeing closer and closer…But, you’re not ready.

And that TERRIFIES you.

Because the stock market is constantly up and down, banks aren’t paying much if anything, and retirement accounts like PERA are questionable.

So, what can you do to prepare for retirement? Because whether you like it or not, it’s creeping towards you.

Well, one of the best and most secure strategies is private lending.

There are thousands of fix and flippers, landlords, and other real estate investors who can’t get a traditional loan through a bank. So, they turn to private lenders.

Someone like you. Someone who has a chunk of money they’d like to safely invest so they can boost their income…and their retirement savings.

So, how exactly do you make money in private lending? Well, it’s pretty easy, actually.

Step 1

Find a trustworthy real estate investor who needs cash to buy a fixer upper.

Step 2

Create a private note that includes the interest rate for your loan. Rates vary in private lending, so it’s your decision on how much you charge.  And how much you charge depends on how much you trust your borrower.

Step 3

Collect interest payments and boost your retirement savings.

That’s the basic gist. And if you’d rather have someone else find trustworthy real estate investors, create your note, and oversee the life of the loan, then you can use a licensed and experienced company like ours to help you handle it.

Here’s the thing. Since the beginning of time, people have needed money. And they’ve always needed to borrow it from someone. Why not you?

Don’t let retirement scare you. Take control now and start investing your money in a way that will help you face retirement…and face it with confidence.

Ready to talk about investing your money in real estate? Great! Our team is always here to chat.

Happy investing!

by
Become a Private Lender: Invest in Real Estate without Flipping or Renting

Private Loans: Invest in Real Estate without Flipping or Renting

Do you know about private loans?

And did you know you can invest in real estate without resorting to fixing and flipping or fixing and renting?

It’s true. Everyone can put their money to work, even if they don’t want to put their muscles to work. If you want, you can skip the hammers, ladders, and paint. There’s no need to groan over dust-covered floors, clothes, and, well, everything. And forget about stressing over contractors and delayed projects. Because you can invest in real estate without ever stepping foot inside a property.

How is this possible? Well, it’s actually pretty easy.

Rather than rolling up your sleeves and searching, buying, fixing, and selling or renting properties, you can become a private lender.

What does being a private lender mean?

Simply put, you become a bank for fix and flippers or rental owners. And you get to charge them interest for using your money.

Interest rates vary in private lending, but one thing is for sure: you’ll earn A LOT more interest in real estate than in your bank account.

Now, there are a couple of ways to become a private lender.

#1: A Helping Hand

So, the easiest way to get started is through companies like our sister company, The Note Shop. Through our licensed company, we connect private lenders with real estate investors.

And when you use a company like ours, you don’t need to:

  • Search for real estate investors who need funding.
  • Interview them and review their portfolio to determine how much you can trust them with your money.
  • Analyze properties to make sure they’re worth the investment.
  • Prepare loan documents, like deeds of trust and mortgages.
  • Handle escrow draws.
  • Oversee the life of the loan, including all payments, extensions, and modifications.

Yes, you can skip ALL of that and let our team do the work for you. That means we handle the entire list above.

Not you.

#2: DIY

Or, if you’re experienced and confident in private lending, you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money).

OPM puts you directly in the driver’s seat. Because you get to decide how big of a risk you’d like to take with your money, and that risk is based on trust.

Like, do you trust them to:

  • Pay you back?
  • Buy, fix, and flip a property within your agreed upon timeline?
  • Sell or rent a property for what they claim it’s worth after they repair it?

In addition to trust, you also need to tackle the entire to-do list we mentioned above. This is completely doable! But, again, it comes down to how much risk and work you want to take on.

So, there you have it! You can invest in real estate without ever picking up a hammer.

And, believe us when we say, private lending is easy, lucrative, and EASY!

Ready to talk about investing your money in real estate without breaking a sweat? Great! Because our team is always here to chat.

Happy investing!

by
How Your Credit Score is Robbing You

Credit Score 101: How Your Credit Score is Robbing You

In this session of Credit Score 101, we’d like to introduce you to Sally Payday and Joe Robber.

How Your Credit Score is Robbing You 1080p 210928

Sally Payday is a wonderful guest. When she shows up on your front doorstep, she brings a smile, hug, and a bag of cash with her.

Joe Robber, on the other hand, doesn’t knock. He strolls right inside and steals money out of your wallet. Then takes it and runs!

So, who can you expect a visit from? Sally? Or Joe?

Well, it all depends on what credit score Mr. FICO gives you.

Mr. FICO can be a tough cookie, especially if you:

  • Forget to pay your bills
  • Overuse your credit cards
  • Or don’t use enough credit…meaning, you don’t have enough or any

Believe it or not, having debt can be a good thing. Because when you don’t have any, Mr. FICO doesn’t know you exist. Therefore, he can’t give you a credit score—or he can only give you a low one.

And if you have a low score, then, unfortunately, you can expect a visit from Joe Robber. Because a low score means you pay higher interest rates on your house, car, and other loans.

And if you’re paying higher rates, then Joe gets to take more of your money.

Which makes him a very happy man.

He loves stealing all the cash you could be using to save up for a dream vacation, a healthier lifestyle, or a more comfortable retirement.

Meanwhile, Sally Payday takes a different approach.

She doesn’t like to take money. She likes to make sure it stays in your bank account. But she can only visit people who have good credit scores. Because a good credit score means you pay cheaper rates.

And cheaper rates mean lower bills. Which means you can pay for your trip, gym membership, retirement, or anything else that would make your life better.

Sally Payday and Joe Robber are not one-time visitors. They show up on your doorstep every month.

And every month, Sally brings cash, and Joe steals it.

Which one would you rather welcome into your life?

Because it’s really your choice.

Everyone can have a good credit score. Even if you don’t have one now, it’s within your reach. You don’t need to keep letting Joe in the house. And Sally’s just standing there on the sidewalk, ready to present you with a bag of cash.

Want to find out how you can raise your score? Check out some of our other videos on our Youtube channel.

You can also join our live series How to Invest in Real Estate. Every Thursday at 11 AM MST, real estate expert, Mike Bonn answers all of your questions and shares expert tips on improving your credit score, investing in real estate, and building a comfortable retirement.

Happy investing!

by
How to Reel in Thousands with Your Credit Score

Credit Score Tips: How to Reel in Thousands with Your Credit Score

Let’s dive into some credit score tips today.

Did you know your credit score is the bait in your life that will either catch big prizes…or big flops?

If you toss YOUR credit score in life’s lake, what can you expect to catch? Well, it depends on what you have in your tackle box. And what you have in your tackle box depends on how well you’ve taken care of your credit score.

Credit Score Tips: How to Reel in Thousands with Your Credit Score

For example, if you pay your monthly bills on time, keep your credit usage below 30%, and focus on building a good credit mix (meaning you have a house payment, a car payment, credit cards, insurance plans, etc.), then you probably have some excellent lures and juicy bait to toss in the water and catch something big!

We’re talking about your dream house, a new car, a heftier retirement account, and just about anything else you’ve hoped to have in your life.

Because the better your credit score, the lower your rates. And the lower your rates, the more money you accumulate over time.

Think about it. If you have a score of 760 or higher, then you’ll likely reel in at least an extra $250,000 by the time you retire. All because you paid lower interest rates than someone who had…well, bad bait.

Those who have bad bait in their tackle boxes tend to have scores under 650.

This kind of bait isn’t going to get chomped on. It won’t even get a lot of nibbles. In fact, the only thing these subpar credit scores will reel are rejections and high interest rates. Which means you won’t get to feast on a dreamy life. More likely, you’ll have to scrounge and struggle to get what you want. Be it a house, a car, a loan, or even a small retirement account.

And that extra $250,000 that people accumulate in their bank accounts when they use good bait? Forget about it!

But fear not!

The good, tasty bait is available to anyone who wants it. You just have to put your pole down and start working on boosting your credit score. Which isn’t even all that hard. It just takes a few quick, consistent steps to start raising it.

Again, think about:

  • Paying your bills on time every month
  • Keeping your credit usage under 30%
  • Getting a loan to help you pay off your credit cards

Check out some of our other videos for credit score boosting tips.

If your tackle box (aka, your credit score) needs a little help, our team is here to help. Because we truly believe everyone deserves to fish in a lake that’s filled with juicy prizes.

Happy investing!

by