6 Ways Private Money Lending Launches Bigger Yields

Are you frustrated with the present condition of the markets?   Here are some reasons that you might be missing the boat without alternative secured opportunities like real estate lending.

• Opportunity Cost

  Everyone knows the cost of a missed opportunity is the most expensive cost to pay. When a sweet deal comes along and you are ready then you get the extra profits derived from that deal. If your money is tied up in a standard IRA it could be weeks before you can access it. By then the deal is gone.

• Using others human capital means greater leverage of talents.

  When you work with people who have expertise in their own field you get to benefit from their knowledge, skill and connections.

• Short term means higher yields.

  When your money is working harder for shorter spans of time, that money grows at a higher annual yield. Example:… If a real estate professional regularly gets yields around 300% do you think you would get a better margin by placing your money on some choice deals, even if those deals were only for three years or less?

• Social Capital Advantage

  The more games you play in the more games you hear about and the greater your opportunity to get that early mover advantage (means higher profits). When you play with the big boys you hear about the big deals.

• Passive investing means time leverage.

  We’re all busy with something but if your money is working for you while you are working for even more money then your wealth growth factor is leveraged beyond your capacity.

• Security

  There aren’t many investments nowadays where you can’t loose your principal investment AND get a reasonable yield. Lien secured paper gives you the best of both worlds. You get the higher leverage of owning an asset that may be worth more that the real estate loan securing it AND you get the benefit of a paper asset which has a ready market if you wish to liquidate it. The alternative secure path pays just a little less than inflation. Believe me, inflation is coming. You want to have your paper investments secured with something who’s value rises with inflation like real estate loans.

These are six reasons you should seriously consider private money lending as part of your investment portfolio. We can guide you through the process of setting yourself up as a private money lender and introduce you to deals that are secured and produce yields about two or three times the market rate.

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