Private Lending – 7 Key Questions and Answers

Q1. What are private lenders?

A private lender can be anyone with money that wants to loan it in order to make more money.

Q2. How much money do I need to have to be a private lender?

The amount the borrower needs is solely determined by the deal. It can be as low as $1,000. However, the more you loan, the more you make. Loan $100k and you make 100 times more. That’s another great advantage; you determine how much you make.

Q3. Can I invest in real estate with my retirement account, like an IRA?

Yes. There are rules you need to follow, but this is becoming a more common method to boost your retirement investment.

Q4. Why isn’t this advertised more?

Well the truth is, those who provide IRA accounts don’t want you to put your money some place else and they control over 95% of the industry. But, in the current economic downturn on conventional accounts, more and more people are learning that they can purchase real estate using funds from their retirement accounts.

Q5. How long is this type of investment?

That is up to you! As the lender you can set the terms that you like. The most common of these loans is for 5 years, but if you want to make more money you can sometimes extend the loan to 10 or even 15 years – whatever suits your retirement goals.

Q6. Can I get my money back if I need it before the end of the loan term?

That is the beauty of this type of investment; it is more liquid than many other investments. Here are just 2 options you can use to get you cash back if you need it.
1. Offer the borrower a discount for an early pay-off
2. Sell a portion or all of your loan to another private lender

Q7. How do I protect myself legally?

The best way to protect yourself is to get educated so you know how things work.

To get your FREE REPORT on private lending and other real estate tips go to http://www.mi7online.com/free-reports/ . Kyle Pavey is a real estate solutions professional. Feel free to visit his website at http://www.mi7online.com .