November 22, 2014
Out of all the forms of investment available for people who wish to invest and make money the safest and highest paying option available out there is the market has to be private lending.
Not only does a Private lender get upwards of 6% interest from the loan, the loan itself is backed by physical collateral equal to the loan value and in some cases backed by local escrow, all the exposure is met by the borrower rather than the lender
Stock markets and other investment opportunities like CD’s are either highly volatile or pay very little, Private lending on the other hand, specifically Real estate based private lending offers complexly safe and secure returns for the lender.
Flexible to Make your Own terms with the Borrower
When it come to real estate lending the borrower that approaches a private lender will do so because the private lender will have a less complicated paperwork procedure and be able to fund an investor with hard cash faster than a bank would be able to, this need of the Real estate investor to get their loans as fast as possible plays to the lender’s advantage as the lender can pretty much negotiate their own terms at this point and adjust their interest on the loan accordingly.
Investors Avoid Multiple Credit Checks
Once an investor makes a strong relationship with a lender , when trust is established it’s easy for a borrower to approach the lender for finance, without having to worry about multiple credit pulls that could damage the score overall, since the deal is conducted on the basis of honor and commitment and on the basis of trust.
You have Enough Information to Make a Smart Decision
Private Lenders are not at all blind when it comes to the facts and figures of investing, there is no need to go by a gut feel, one can calculate the cold hard facts and make a logical decision regarding whether to invest or not.
There’s no need for a private lender to be in the dark regarding any deal at all, once the process is initiated the borrower will provide proof for the worth of his project, the lender can even analyze the property themselves and see if it has potential before deciding to invest in it, and can even go so far as to visit the property after lending to check up on progress on a casual visit, in case of friendly terms with the investor.
The Ball is Always in your Court Till you Sign the Dotted Line
The best thing about this is that most investors either need to get their funds quick or they don’t really have any other option for their financing needs because of their credit score, in either case, in fact in any case regarding private lending, you are the boss. Quite simply you decide whether you want to invest or it’s always totally in your hand and totally your option to do so.
The Stock market being Crazy Volatile the way it is ( and also requiring constant insider information trading as well as sitting on top of the market all day ) is not everyone’s cup of tea.
CD’s are not a good option since the best only pay an interest of a maximum of 3% even that very rarely.
Best Option is Private Lending which Affords you the relaxation of picking your own terms and make money just sitting and watching the checks roll in.