Determining How to Work with a Private Money Lender for Your Real Estate Deals

“There are different types of owner financing arrangements but here’s the most important thing to know: everything is negotiable…
for a seller who is willing to do an owner financing arrangement, it’s just a matter of bringing together…
the right components into the agreement to make it a Win/Win.”

Inquiring Minds Need to Know:

  • Different sources of money may need different terms
    • Self Directed IRA or 401k – Custodians/administrators are involved
    • HELOC used for profit – taxes on the profits, after subtracting interest cost(s) of HELOC
    • CASH – Taxman wants his piece of the profit. What payouts make the most sense?

Reasons for Getting into Money Lending Arrangements:

  • Profit without the work – Passive Investing Strategy
  • Learning to be a Real Estate Investor (REI) by joining in with someone experienced
  • Create cash flow by putting money to work
    • Pay into the investment to create revenue to offset paying out existing loans
    • Getting the money in play out of Credit Lines, while they are more easily available
  • Waiting for a payday in another tax year

Risk and Reward:

  • Hard Money and Private Money – which is it
    • Hard – High Interest and Possible Points, usually paid quickly after “flips” or on the way to an institution funding. In for the short hall, super quick decision, and the short term earnings (with generally higher tax rates).
    • Private – Displace the banks and institutions, usually on longer-term and safer projects/properties.

Questions:

  • Read more at SanrinInvest.com
  • Email us from the Contact Pages
  • Call us and ask for a discussion…
    • Zoom
    • Phone
    • In-Person (we are happy to buy coffee, breakfast, or lunch)

“….my rich dad said …the purpose of a business is to buy real estate.”

Robert Kiyosaki

One of the ways to buy real estate is to put your money to work through other people…

Contact us to discuss what works for you and your situation.

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