Why Private Lending is HOT!

We are all aware that real estate prices are down anywhere from 15% to 40% across the country.  In the past, you might have invested $15k to $30k to buy rental property that rented for $1,000 per month and netted the investor 10% to 15% on their investment. 

Now you can buy that same property for dramatically less but the rent has remained the same, or even gone up slightly, over the last couple years.  So the return to the investor has gone up substantially and 30% to 50% returns on your investment are ordinary today

The hard part right now is being able to get a bank loan. Banks want to see 20% to 40% down from real estate investors AND excellent credit, traditional employment, and personal guarantees.  If you do not meet these criteria you are essentially lock out of the traditional mortgage market and will be unable to borrow money from banks.  Many of the other non-traditional loans such as “no-doc”, ALT-A and no money down loans have all disappeared due the financial crisis.

So what is the solution for real estate investors that have been locked out of the traditional mortgage market?   
Private Lending is the answer!

Private lending is a consistent source of funds with which to purchase real estate deals and to which you can often go back to again and again and again.  In fact, the more you use, the more will become available as you develop relationships with more private lenders.

The reason why private lending is HOT today is so many people are lock out of the traditional mortgage market and private money is their only option to get money for real estate investments.

What is private lending and who are private lenders?

The definition of a ‘private lender’ is an individual that you can negotiate directly with on a personal one-on-one basis from whom you wish to borrow money for real estate investments.  The money can be used to purchase rental real estate investments or to supplement funds borrowed from a bank to cover down payments.

Private lenders come from all walks of life and may not know the first thing about the real estate business.  But what they do have is extra cash or assets that they can invest in your real estate deals.   These individuals are generally middle class people, who have some extra funds to lend.  They can be retired business people, corporate executives, professionals such as doctors, lawyers, or business owners or even blue collar workers. 

Private lenders are looking for returns substantially above the 3% to 5% they get at the bank with CD’s or money markets.  Most private lenders are looking for investment returns in the 9% to 15% range and secured by local rental real estate. 


For more information please go to http://www.private-lending-secrets.com/.