Oliver Galt
Properties & Investments
251.504.7231
Accredited & Sophisticated
Investors
What is Private Lending?
Private lending in real estate is when regular people like you and I lend our money to a real estate investor to buy a distressed property at a discount. The funds to close on the purchase and make the repairs (your money) are secured by a 1st mortgage or deed of trust (lien) against the house (security).
Private lending is your way to become the bank and earn the higher interest rates. These rates are much higher than gains on a 401K, Savings Account, and just about any other typical investment. Between 8% and 12% return on investment is common.
Why Would Anyone Borrow Money at 8% to 12%?
Real estate investors commonly borrow money at 8-12%. Why? Well, because it's not the cost of the money that is inherently important to be a successful real estate investor, rather, it is the speed and availability of the funds.
Real estate investors like me buy distressed properties at steep discounts and, once improved, will re-sell for a profit. The challenge investors face is that most traditional banks take too long to evaluate a loan package, making it nearly impossible for the investor to purchase the property.
Speed is a real estate investor's best friend.
The best real estate deals are made when the real estate investor can close fast and pay cash. So when banks delay and are too slow to fund, real estate investors lose great deals. Because real estate investors buy for a profit, paying a higher return on money borrowed is really just akin to giving a little profit away to the private lender that helps get the deal done.
It's a win/win opportunity for both lender and borrower. The lender (you) gets the opportunity to earn high returns secured by the great real estate deals and the borrower (the investor) gets to keep their business profitable with out the limitations and delays usually imposed by traditional banks.
When you register your email you will get a detailed 23 page report on how to be a Private Money Lender. It will explain the vocabulary and what to expect. Leave your contact info below and a member of our staff will contact you shortly.
Any dollar amounts are estimations. To be a private money lender one must be an accredited or sophisticated investor. All accredited and sophisticated investors must be qualified and must send in an application to be reviewed by hand. This is not a solicitation or offer of securities. Investment is offered only to qualified investors through a written Investment Agreement or Private Placement Memorandum. Finding a property or getting a property under contract does not guarantee the property meets our requirements.