Private lending is how you can use your own funds to partner up and securely earn a double-digit interest rate. Now, what is a private loan? How do they work? What are the benefits of the mortgage and how you get paid back?
So, What’s A Private Mortgage?
Is a mortgage loan that's provided by private individuals or retirement funds, as opposed to a traditional mortgage with financial institutions. Now, private mortgages produce a predictable income stream to a private lender, which would be yourself, and the mortgage lien provides security, protection and recourse.
Everything is provided with secure documentation, and as mentioned, there is recourse. If something goes awry, you as a lender are protected.
You can invest with your IRA. There's multiple ways of bringing funds in and not just having this cash sitting in a savings account, which maybe an option but you also have things like your self-directed IRA and your 401(k) plan, and you can also have a solo 401(k), so all of that is self directed.
Why not just cut off the middleman and become a private bank on your own?
How does a private mortgage loan work? Really, it's just a simple circle like this where we would borrow money from you on a set interest rate and payment plan. We buy distressed mortgages or ugly houses. We take on the responsibility of managing that transaction. Meanwhile, you're earning double-digit interest.
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