In the last post we learned the basics about Investing in Real Estate Notes. This week we continue with another technique for investing that doesn't require the actual ownership of the physical property. This technique is known as Private Lending and is becoming a very popular to make a solid return that will beat most of the banking products and be secured by the physical asset.
Private Lending - Acting as the lender to other investors for the purpose of purchasing real estate
How it works: Private lending is simply the act of loaning money to an investor per agreed upon repayment terms. In most cases, you will have no active role in the real estate investment but will receive payments from the investor per the terms. You can (and should) have a security interest in the property that you are loaning on, meaning that if the investor doesn't pay you, you can foreclose on the property.
How to invest: There are many ways to become a private lender. Here are some of the most common methods:
Where to get more information:
Next week we will go over the most well known technique and still one of the greatest: Long term buy and hold real estate investing. Please reach out to me with any questions or comments using the comments button or through the contact page on my web site. If you would like to talk more about any of these investment methods or discuss how we can partner together, please contact me.