Now that real-estate industry has been very good in the financial market, truly this is the right and the best time to invest in trust deeds. If you want to put your money in a better use and get benefits of up to 10%-12% investment returns then investing in private money loans will be the best bet for you.
Who can invest in private money loans?
Because of the great benefits and of minimum risk in investing in private money loans, many are getting interested with it. Thus, if you are an investor or a retiree who want to put your money in good use with interest you can expect annually then this is your time.
Retirees: If you have retired and you want your retirement funds to last longer then investing it in private money lending is your best alternative. You can receive a consistent monthly income secured by a real-estate property that has good amount of equity. Once you become a private mortgage lender, you will be assured with a high yield of interests and benefits, you can also expect a consistent cash flow perfect for retired individuals like you. Thus you can secure and prolong life of your retirement funds.
Investors: If you are just interested in investing your money without the hassle of owning rental commercial properties or managing tenants then better to have your money in private money loans. You’ll still enjoy the great offers of trust deed investments without that much of a hassle. Plus, the annual returns of 10%-12% on trust deeds investments are much higher and more appealing than any other money markets.
If you are interested in private money lending and you have at least $25,000 to invest then this is a very good opportunity for you. You are securing your money and enjoying great annual returns, all at the same time.
Why invest in private money lending?
Aside from the annual returns you’ll get to benefit from, there are so many other reasons why you should invest in private money lending.
- Private money lenders only fund first trust deeds for a more secure investment procedure.
- Your investment will be returned with 10%-12% interest and that’s pretty greater and more significant than any other market money investments.
- Properties purchased for private money loans collateral are of market value or lower to assure higher profit.
- Private money lenders only grant loan applications of the borrowers who have the ability to repay the loan.
- These loans are offered in a short term investments to get returns faster and more efficiently.
- Each deal closed comes with a well-defined exit strategy to assure that the borrower can pay the loan wholly.
Securing Private money Investments
Investments always come with high-risk however with hard money loans, your money is more secured and you’ll face minimum risk compared to other money market. Due diligence prior to investing is what they do to ensure that your investments are in good hands.
- Properties are assured to be of good market value and equity for the security of the loan.
- Documents and evidences and instruments are all validated upon securing the loan.
- Due diligence regarding the borrower’s financial strength ad ability to pay the loan is performed.
- There’s a review for all the escrow and title reports, appraisals and property inspections.
- Third party vendors and others reports of the transactions are evaluated to ensure the capability of the borrower to repay the loan.
- Lastly but definitely not the last, there’s a protocol in recovering your investment if ever the borrower fails to pay the loan.