Private money lending is a way of supporting the financial needs of real estate investors. It is usually a bespoke (mutually negotiated) way of lending money to investors making it more beneficial for both the parties involved. Private money lending operates in a non-bank environment as both the parties are in direct contact with each other. National Wealth Builders has a team of professionals to identify and grab the right opportunity, maximizing the amount of profit.
There is a long list of benefits for private money lenders and the most important ones are listed below:
The most passive way of investment
Private money lending is the most passive way available for real estate investment. You don’t have to stress yourself for finding a property; you don’t need to do any labor work on the property, look for tenants, collect rental payments, do any maintenance, or put it up for sale. You just have to give your funding amount to the investors and enjoy the pay-outs.
Money is secured with property
While opting for private money lending in real estate property, you know that your money is secured with a real piece of property. There is an actual tangible asset that backs up your investment. So, there is very little chance that any real estate investor can default on your funds and that makes it a low-risk investment.
The safest method of investment
As a private money lender, you are in the safest zone. You are playing the role of a bank and have the lowest risk. Your money goes straight into an equity account and you start getting pay-outs at the pre-decided interest rate. After the project is sold, you receive the whole balance of your funding amount.
Cash flow is high
As compared to other real estate investments, private money lending gives you the highest amount of cash flow. Based on recent research, a private lending investment can earn up to 10.5% annually. The lender receives an interest amount on the equity which begins as soon as the project is funded.
Control over loan
Control is another advantage of private lending. You get to decide the “rules” and rates to be charged as a closing fee. You can also decide on the pay-out period (monthly, quarterly, and annually). You get the control to decide your due diligence.
If you too, are looking to invest in a real estate and don’t want to do a lot of hard work, then lend your money to us and enjoy the perks of being a passive investor.