Why Private Money Lending
Investing in real estate is essentially one of the smartest and safest strategies to promote wealth building. With the proper foundation and knowledge, investing in real estate can be highly lucrative for anyone.
Investors are advised to be smart with their money. Of course you can invest into stocks, bonds, and annuities, but if you are looking for an alternative, there may be one option you haven’t considered yet: private money lending.
Investors who have the funds to do so should consider private money lending in real estate. This process offers the same type of underlying security and profit potential as rehabbing or buying rental properties, but without actually acquiring new properties.
What Is Private Money Lending?
Private money lending is when individuals lend their own capital to other investors or professionally managed real estate funds, while securing the loan with a “mortgage” against real estate. Essentially, private money lending serves as an alternative to traditional lenders, like banks.
Leaving your hard-earned money in a savings account is no way to protect and grow your assets. At the end of the day, private money lending allows you to secure a loan with real estate that is worth much more than the loan.
In the past, real estate financing typically came from banks, government agencies, insurance companies, and pension funds. However, with a list of strict requirements and a timeline not conducive to the average real estate investor, a need for alternative lending sources developed. At the same time it became obvious to those with appropriate funds that their money could better serve investors and not large institutions.
Now, private money lending is a critical component to the real estate investment industry. In fact, its presence makes it more possible for the average investor to run and maintain a sustainable portfolio of properties.
There are several benefits involved for those who choose to lend private money as well. If done correctly, offering alternative real estate financing options can mitigate risk of other investments you have, while simultaneously establishing wealth.
Of course private money lending is not a path for everyone. You need to ask yourself if you can afford to do so. Having a little extra money in the bank does not necessarily mean you should throw it at the first investor who comes your way. If you are equipped to mitigate potential risks and take advantage of the opportunities that present themselves, private money lending may warrant your consideration.
You may want to consider Private Money Lending if one of the following applies to you:
- You are a real estate investor looking to expand your investment portfolio.
- You are a doctor, lawyer, CEO, or professional of another kind who has a great income or a surplus of cash.
You have a sizable retirement savings account.
You are a retiree looking for a passive income investment.
You are owner of an estate or other trust fund.
You are a business owner & entrepreneur who owns a successful buisness.
You are a lottery winner.
You want to and are able to help out a friend or family member.
Private Money Lending with National Property Group
National Property Group creates opportunites for Private Money Lenders to earn returns backed by Real Estate projects. We look to acquire Single Family, Multi Family & Apartment properties that meet our criteria.
We focus on specific types of properties due to their location, stability in various economic conditions, and cash flow. We put our efforts toward acquiring and managing these types of properties so our private lenders earn investment returns.
If you would like to chat with Keven or Garrett about how we work with Private Money Lenders, click “Schedule A Chat” and you’ll be on your way toward learning how we can work together.
Get your guide to Private Money Real Estate Investing
Start creating high returns and passive income with Private Money Real Estate Investing. Inside, you’ll discover:
- What is Private Money Lending?
- How to participate in Private Money Lending.
- Who Private Money Lending is for.
Disclaimer: No Offer of Securities—Disclosure of Interests. Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.