Private Lending ED

How can I become involved in the highly profitable distressed real estate business?

People always come up to me and ask "Mark, I want to invest in real estate because I know I can make a lot of money, but I don't know what to do, or when to do it. I also don't want to deal with tenants, toilets and trash! What can I do to make money?"

My response is the same no matter who it is: become a private lender!

Lending your money to businesses that make money in real estate for a living, rather than trying to buy, fix up a property and rent it out or sell it yourself. That way you are releived of the burden of hassling with things better left for the experts.

What exactly is private investor lending and how can it benefit you? In our case we are going to be talking about private lending in real estate. Regular people like you and me lend our money to a real estate investor to buy a distressed property at a huge discount. The funds to close on the purchase and make repairs (your money) are secured by a 1st mortgage (lien) against the house that you and the real estate investor choose for your investment.

Basically, private lending is you becoming the bank and earning high interest rates and eliminating the middle man. If you want to learn more pick up our free report at http://PrivateLendingED.com or keep coming back here for more information. All the best...

Real Estate Investing: Evaluating The Opportunity

Perfect timing! Last night's speech by President Obama gives us a chance to evaluate our opportunity for investing in distressed real estate. After listening to the speech and after listening to analysis of President Obama's address, I am certain now is the time to take advantage of the lowest prices in nearly a decade.

"But Mark, why now? Don't you think prices will go lower? Aren't you afraid of loosing equity?"

Will prices go lower? By how much? I wish I could know for certain when the exact bottom of the market is. When evaluating opportunity we also look at our individual investing goals. What is our best exit strategy now and what kind of returns are we expecting to yield?

If I could receive a 10% annualized return before taxes and expenses, renting a property out today, would it matter if the property's value dropped by 5%? What about 10% ? Well let's take a look-at an example to study this further. Suppose you have money in a money market account earning 1% interest. Let's say it's $100,000, making $1,000 per year, about $83 a month.

Now instead find private investors who will invest the same money $100,000 in real estate and get a $1,200 per month return in the form of rent. Would it matter if the property's value went down 5%? That would make it worth $95,000. What's the return? The same as before, no change. What about a 10% decrease? No change, because your rent is still $1200 per month. By the way, that's a 14% annualized return.

Of course this is for a buy and hold strategy not a short term flip. You will probably be holding this for at least 5 years but more likely closer to 10 years. I would much rather be holding real estate in 10 years than holding anything else, especially if I don't have to worry about it. Not worry, why not ? We will have more information about that in a future post, stay tuned.

As you can see by evaluating the opportunity it will make it easier to make an intelligent decision. President Obama directly addressed our real estate crisis last night by declaring he would help those who honestly couldn't pay their mortgages and not help the "speculators" or those who knew they weren't going to be able to pay (how will he know this ?).

In either case the banks now know the properties they own or will own, still have to be sold. The government is not going to buy them, smart, educated people will. Will you?

What are the three factors a private lendor must evaluate before making the deal?

Welcome to Private Lending ED. Our goal is to provide clear, logical information concerning the business of private funding. We want to educate you on how to be a safe and successful lendor. With the chaotic, frightening economic crisis reducing our incomes, we want to reveal to you the money making world of the wealthy.

Our step by step system will teach you how to make 9%, 10% or even 12% returns in real estate right now without ever dealing with any of the hassles of owning real estate: tenants and fix ups. We'll show you how, let's get started!

The most important decision an investor makes is where to put ones money. Which vehicles will travel the best and for how long? Especially now in signs of worsening conditions, what can we do? To make the analysis less stressful and create successful results we must consider these three factors: The Opportunity, The Risk and The People.

We will go into those in more detail in the following days. Let's cover a brief outline of some things to consider for each. First, we evaluate The Opportunity. Are there good opportunities in the real estate market today? Do they meet my financial objectives? What will my return on investment be? What will the payback period be? There will be many more we will discuss.

The next factor to consider is The Risk. Can I risk loosing my investment? Is there a track record of the investment model I am considering to confirm that the model works? Do I know whether the investment is secured by assets or not? Another part of this is understanding the legal, tax and other future risks. I will have more information on what to ask later.

Finally, the last evaluation is as important as the other two: The People. Who are they and do I trust them? Having confidence in the company you invest in is key. Who is the team and can they do what they say they will do?

Ultimately the private money investor should know the answers to these and many other questions before they start the lending process. Here at Private Lending ED we will provide you with as much information we can to allow a winning investment strategy to grow and develop.