What's all the Fuss about Private Money??

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I thought for sure just about everyone that is involved in this wonderful business has heard talk of Private Money, Private Lending or Private Mortgages! But a few people I know are like the guys in the Geico commercials living under a rock and did not know this is where Private Individuals lend money for Real Estate people to do deals. In my humble but totally accurate opinion  Private money is the best thing going for us real estate people and for the private lenders! This great partnership allows someone who may have lost money in their other investments such as the stock market over last few years to get involved in the greatest time to do real estate I have ever seen and I have been in it for 30 years! They are in a passive role and put their money to work for them. So we do the grunt work and they profit along with us! A truly great win win!!
Banks will not lend to us investors and even if they do we have to come up with large sums to complete the buying and renovating of our properties. This prevents us from doing a lot of deals and right now there are lots of deals to be had if we can access the funds. This is where the Private Money comes into play. Someone who has been taking a beating the last few years in their investments can get involved with a very safe (when done right) high return investment and earn 10 – 15 % or more! Where else can you earn that return in a safe manner??
But anyway if you have not looked into working with Private Lenders you owe it to yourself to check into it. It may not be easy to come across the right people but they are worth their weight in gold when you have some good people to work with. And please if you do work with some Private Lenders treat them right as we have all seen enough bad press about things being done the wrong way! Make sure you protect them and have a good attorney handle all the paperwork and funds for example. If you have any questions there are some good people in Richmond doing it the right way so reach out to them and make sure you are doing the right things.
Ok sorry enough preaching.
Good luck and Happy Investing!

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