A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage position that secures their legal interest in the property and secures their investment. When we have a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Through that process, the lender can yield higher interest rates than savings accounts, CD’s and other traditional investment plans.
Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would, It’s a great way to generate cash flow and produce a predictable income stream – while at the same time, provide excellent security and safety for your principal investment. You can do what the banks have been doing for years…make a profitable return on investment backed by real estate. There is no other investment vehicle like it.