EARNING DOUBLE DIGIT RETURNS ON YOUR HARD EARNED MONEY It seems lately that our life savings and hard-earned retirement funds can simply evaporate into the wind with out a moment's notice. That's why we recommend securing investments against a solid, income-producing asset: real estate. Private money lenders are people just like you, who prefer investing their money where they can get a higher rate of return combined with a higher level of security and liquidity. They know how volatile the stock market can be and don't want to take those risks. Here are a couple of private money lending options:
Private Loans Secured by a Mortgage What is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private lenders are given a first or second mortgage that secures their legal interest in the property and secures their investment. If the borrower were to default on the loan, the private lender would receive the home as collateral. The initial loan should be for less than 75% of the value of the property. Private money lenders are generally paid 10%-12% for the use of their money. The loan is generally for 3-6 months so that a borrower/rehabber can purchase, renovate and resell the property, at which time your loan is repaid through escrow.
While this may seem complicated, Real Wealth Network simplifies the process for you. We have highly experienced rehabbers within our network in emerging markets around the country. They are constantly finding great deals on bank-owned property, and need financing to acquire and then fix up the homes. Conventional banks do not lend on homes that need repair. That's where the private lending comes in. We will walk you through the process and connect you with the rehabbers. And as an additional bonus, we already have buyers waiting to acquire those finished properties. We will also give you a check list of what to expect and how to protect yourself.
Private Money Funds Some of our members prefer an even more passive investment, with the possibility of an even higher return for an extended period of time, with the option of liquidating at any time. In this case, the private money lender invests in a fund that is secured by multiple properties - distributing risk and keeping returns high. Here's how it works: Real Wealth Network members pool their money in a fund that lends to several properties. In this case, if the borrower defaults, the private lenders barely feel it because they are receiving income from other loans within the pool that are performing. The fund manages everything for you, including appraisals, underwriting, and even potential foreclosure. (Keep in mind that the borrowers are highly experienced rehabbers who know how to buy right and rehab professionally, so the chance of default is very low.)
The Network Capital Fund offers investors a share in the interest rate charged, points charged and (in some cases) even an equity share in some of the properties.
For more information on Private Lending, please fill out the boxes below and we will email you the information you requested.
