Homan Ardalan — What Are The Benefits Of Lending Private Money On Real Estate?
Being a private lender will bring a lot of benefits for you if you lend money to real estate investors. And before you get into the benefits, you must know what private money lending is. Talking about the real estate financing industry means the money that an individual, not any bank will lend to real estate investors. This money lending happens in exchange for a pre-determined rate of return or any other consideration. If you want to know more about private money lending, then go read Homan Ardalan — Who Can Benefit From Private Mon ey Lending ? Private Money Lending would not have become popular unless Lenders saw a tremendous value in it. Let us review the key advantages of becoming a Private Money
1. Return on Investment Talking about private money lending, the current interest rates that are charged on private money loans will be between 7% to 12%. These rates as per the recent years are actually greater than returns from CD’s savings as well as money market accounts. Furthermore, they will outperform the 4.7% of the stock market that has produced, inflation adjusted.
2. Choice The private money lender will have the option to select whom to lend to, or what project to lend on. In fact, they will be able to get the detailed information on the project, the kind of profits normally made, as well as the experience of all the investors.
3. No Effort The lender only needs to worry about the loan. In fact, the investors will take all kinds of other risks possible and will do the work to find, purchase, fix, as well as sell the property. Being the lender, you will only need to collect the interest.
4. Terms are Negotiable The lender will have the choice to negotiate the interest rate as well as possible profit share with the borrower. Apart from that, principle and interest payments will be able to negotiate. No matter what the agreement is about, it must suit both the parties in terms of the private loan and it will be allowable.
5. Stability Real Estate will be having all the ups and downs. However, it is pretty volatile but it is not anything near to the stock market. Apart from that, when it was bought at a huge discount, the property will be able to offer a cushion against all the ups as well as downs. 6. Diversification Lending on real, brick, tangible, or even mortar assets will offer extra diversification to all the lenders’ profiles. They will offer protection even when it is going down the time.
Furthermore, besides being offering private money to investor, Homan Ardalan has some excellent lead generation skills. If you are interested in knowing more about social media lead generation, then you can check out Homan Ardalan — Top 3 Strategies to Lead Gener ation Using Social Media . SOURCE CREDIT : https://medium.com/@homanardalan/homan-ardal an-what-are-the-benefits-of-lending-private-money -on-real-estate-7147d255438b
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