logo-private-lenderBecoming a Private Lender could save your financial future

Everyone has heard of “being the bank”. Everyone thinks you can only do that with Insurance policies or hitting it big in the stock market. Becoming a Private Lender may be one of the only true ways left to make this a reality.

Peer to peer lending has been around FOREVER. Most of us don’t know it’s shape or form as we’ve only seen it lending $20 to a friend or relative. Others have lent bigger dollars only to never see it come back. (Leaves a bad taste in the mouth no?)

In short a return on investment has become somewhat illusive. That’s where becoming a private lender could be a game changer for you.

Being a Private Lender in a nutshell

So what is a private lender?

It’s also called peer to peer lending and its been around since the days of horse trading. (Yes this is said tongue in cheek but it’s to emphasize that it’s been around a long time)

If you are an active investor, you swing a hammer and want to create a net profit after selling the home you are working on or creating cash flow by keeping a property for rent.

As a Private Lender, you don’t have the issue of finding, fixing, and selling or setting up rental. You simply lend capital to an active investor and collect the interest payments. Yes it is interest income and you will have to pay taxes on it if it comes directly to you.

As the Private Lender, you are paid first, not after the property is sold. You gain interest on the principle amount and get your capital back at the end of a relatively short term. (usually 12 months or so)

Benefits of being a Private Lender

One of the advantages of being a Private Lender is the fact that you can take the interest income and place it into a financial security instrument. (wooh big words) Basically like a self Directed IRA, or Defined Benefit Plan, Pension etc. This ensures minimal liability with Uncle Sam.

An Active Investor doesn’t necessarily have that luxury. If income goes into their LLC, they still have to reduce the liability by spending pre tax dollars. Then passing through the remaining income they still get taxed.

For a Private Lender, you can defer the tax liability by placing the interest income into the Self Directed IRA, or other instrument. This makes it easier for you to build your retirement or income for your family trust etc.

It’s how many have made sure their incomes are protected into the future. Not just holding a portfolio of homes for cash flow, but lending and gaining or increasing their Return on Investment.

Check With your custodian or if you need one call us and we can refer a couple to check out. (We gain no referral for suggesting any of them)

Top 10 reasons

ok so here they are in no particular order:

1. Deal with hungry Active Investors

2. Default means you’re getting a property

3. Interest income that can be placed in just about any financial instrument that allows for self directed investing

4. No marketing to find properties

5. No Hammer swinging (yes I’m that lazy too)

6. Easy to earn greater returns on investment

7. Investment is secured by real estate (as opposed to market fluctuation and unpredictability)

8. Shorter term for faster returns

9. No realtors, contractors, or people to deal with other than the borrower

10. First one Paid. First one out.

 

Consider becoming a private lender today. Call us at 702-856-4388 and ask for Dan or Mike. We’ll be happy to discuss what’s possible for you.

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