If you hold a savings account, you’re a lender. You lent money to the bank and they pay you under 1%.
You can lend for real estate, get a 6-12% cash yield with low hassle, and hold real estate as collateral.
This is some of the most passive, hassle-free income in all of real estate.
Learn more at: www.getricheducation.com/lending
Typically, a real estate company seeks to: buy a distressed home for $50K, pay another $20K to rehab it, then sell it for a profit. That $70K is what they seek private lenders for.
This means that the real estate company can provide the distressed seller with a quick, all-cash closing. (Remember, these properties can’t be financed with banks.)
Loan duration is often twelve months.
Dani Lynn Robison of Springboro, Ohio-based Freedom Real Estate Group tells us how Private Money Lending works.
Everyday investors like you can fund this with cash, retirement accounts and HELOCs.