Feed: Private Lending ED - AggScore: 51.5

Private Funding Concerns: Are we seeing a false bottom to the real estate market ?

---

The many new private lenders out there who want to fund projects with me always ask: Are we there yet? and I reply: Where? After a little chuckle they yell: the bottom! A report by Deutsche Bank last week shows still more price drops to come. All the statistics in the world will never predict a true bottom. That's because there are too many unknowns and secrets. The first and most important one is: What will the banks do? No one knows. All we can do is use all the information we do have and make an intelligent plan. The...

When a private lender funds a private money loan does the transaction close with an attorney or a title company?

---

As a private money lender secure profitable real estate deals are your primary concerns. When funding a real estate transaction it is wise to use a professional. Even seasoned real estate brokers who could fill out the paperwork in their sleep, would not close without one. Why? Because they know the paperwork will be handled by people who are knowledgeable and trained to keep your transaction secure. One very important factor in keeping your investment safe, which a title company or attorney will suggest, is a lender's title insurance policy. This is often missed by private lenders because they buy...

How do I evaluate whether a private money loan is a good investment or not?

---

As a private money investor it is crucial to be able to evaluate whether your real estate investor has brought you a viable, profitable opportunity. Of course private equity investments all have particular exit strategies designed to make money. Being able to properly identify the specific plan that works for the property being invested in is vital to your success as a private banker. Let's go over some fundamental rules of thumb. Real estate investors buy properties at a discount and borrow funds below the market value of the property securing the loan. Equity and your maximum loan to value...

Evaluating The Opportunity: Part 2

---

Last February we talked about investment property loans and holding the property for 5 maybe even 10 years in order to realize long term profits. But what if you want to turn your capital twice or even three times a year? Are there opportunites for those kinds of deals? Of course there are! It's true the real estate market has changed in the Riverside, California area. Banks have been reducing inventory on forclosed properties, which in turn has produced a mini-sellers market. Unless banks start releasing more foreclosed properties, this should continue for a while. That is good, because that...

The Private Funding Team

---

Ah, springtime. The baseball season starts. Basketball playoffs! Baseball teams are works in progress whose evolution last for months. Some teams are blossoming now. Some pull it together later in the season. But in the end, it's the two best teams who get the blending and balancing of the talent and use opportunities to their advantage and win! Basketball teams also play a relatively long season. The blending of talent over the eighty two games and then the playoffs is an art and a science. As a private investor you want to be part of a team who has pulled...

What are the private lending documents I need to complete and secure the deal?

---

Lending your money with a private party loan is quite simple. The most secure and legally acceptable way is with two documents: the promisary note and the mortgage or deed of trust. In our business we use both and here's why. The promisary note is signed by the real estate investor who promises to pay back your loan. It lays out the precise terms of the loan. What is the length of time of the repayment? Years? Months? The note should reveal the interest rate, payment schedules and the other aspects of the particular deal the private lender is making...

What's the difference between Private money loans and Hard money loans ?

---

Recently it came to my attention that many people confuse private money lending with hard money lending. The term hard money came about during the Great Depression when banks withdrew from loaning their funds. Private individuals started to lend their money for many different reasons, real estate being chief among them. The reason it's called "hard" is either because it was difficult to get, or it was "hard cash" or "hard" to find, no one knows for sure. Hard money lenders charge much higher interest rates than banks and usually require less money down. You also do not have to...

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...

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...

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!...