The really hard dollars lending industry is a great opportunity to earn earnings as a private cash lender. In the aftermath of the economic recession, genuine estate investors in fact favor tough revenue loans more than traditional lending institutions. Most genuine estate investors are generally acquiring distressed bank owned properties for the purpose of flipping or rehabbing.
Regrettably, current lending policies enacted by banks have made it virtually not possible for anybody without pristine credit and substantial asset reserves to obtain financing to purchase properties to rehab. In fact even with pristine credit and good cash reserves the simple reality that the subject home requires to be rehabbed or has any functional deficiencies can kill the deal due to the fact the property cannot qualify for standard financing.
Quite a few instances the former owner could have had a foreclosure party on the way out and destroyed or took every thing in sight prior to eviction. This is the most common reason investors require access to private dollars.
Investing in true estate as a private money lender is the ultimate win-win predicament for you, the investor and the community as complete. By offering real estate investors with fast no-hassle financing you are in a position to charge a higher interest price, ordinarily in the 15% variety and earn an extra 3% to 5% by charging points on the loan.
Considering that these loans are quick-term and commonly paid back inside six to nine months the speedy return of capital will permit you to lend the revenue once more and again. Thereby making yields in excess of 25% a year.
In this small business you not only have manage over your investment dollars but you have the energy to structure bargains that leverage the time and knowledge of your borrower.
The traditional actual estate investor has to do a lot of footwork acquiring and vetting the offers, but as a private cash investor you have other investors going out finding the properties and bringing you the deals. Additionally it will only take a brief amount of time before your client base knows your investment style well enough to only bring you the bargains they know you are going to be interested in.
Even in financial downturns the company is there. Thanks to all the foreclosures and short sales there are far more than enough properties readily available for pennies on the dollar.
Banks will need to get these REO’s off their books and sensible investors want to flip them. As a private funds lender you will be in a position to get these investors the money they need to have immediately and put a 15% to 20% profit in your pocket and theirs each time.