the advantages of becoming
a real estate lender
1. Becoming a private lender gives you access to a vast market. There are a ton of investors looking for private money lenders all across the nation. You can work with the investor that’s right for you. Some investors pay in a lump sum after the property is sold. Others, will pay you a fixed return each month until the property is sold. We give you the option of both.
2. Money lending produces faster results than flipping. You may not have the time to search for a property. If you don’t, you almost certainly won’t be able to spend the time required to fix and flip it. Money lending is a much lower-maintenance way to make money in real estate. Once you have set your rates and signed the paperwork, you can simply collect interest until the borrower pays you back in full.
3. Money lending offers you contingencies. Even in cases where a borrower does not repay you, you will be able to go through a foreclosure process to make back your loan.
4. By becoming a private money lender you can see more significant returns on your investments. Private lending typically provides better returns than the stock market, because you can set high rates and expect consistent results. The average rate of returns in the real estate market is around 10%, give or take.
5. When using an individual retirement accounts (IRA) and/or health savings account (HSA) to invest in real estate tax advantages (i.e. tax-deferred or tax-free returns) do exist. However, there may be restrictions on the kind of investment that can be made, as well as annual contribution limits. Please do your due diligence in advance before making an investment. You can start by clicking here.
This is not a security. The information provided herein is not intended to be for the purposes of soliciting a Security under State or Federal regulations. This information is intended to give the private investor alternatives to stock market investments, but is not intended to be a solicitation of a Security under SEC rules and regulations. This is intended to be a private borrowing transaction. For more information see our disclosure statement.