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It was 11:00 PM, and I was trolling through Craigslist ads looking for real estate investors seeking money for their deals. Within first 15 minutes, I found a good lead with a phone number. The next day, I made contact and negotiated a 50/50 net profit split with Peter, the investor. Peter had been offering 12% interest, but was open to the 50/50 split due to the timing requirement of the deal. Peter needed $30,000 for two short sale deals out of state, for a total of $60,000. Each of those properties was worth $90,000! When I performed my due diligence and discovered that Peter was indeed a seasoned investor and that the two short sale deals would perform according to Peter's projections, I decided to fund the private loans. Peter purchased the two properties; he conducted the minor rehab work and sold the properties. Upon closing of escrow, Peter and I split a net profit amount of $60,000 for the two properties. In the end I got a net profit of $30,000 as a direct result of trolling through Craigslist ads! The best part of this deal was that the money I used did not come out of my own pocket! It came from lines of credit I had build up for private lending. So in essence, my $30,000 profit was realized without any money out of my pocket. Now, multiply that with the number of investors YOU know that can lend that money to; 5 investors, 10 investors, 15 investors? At 5 investors per year, that could be $150,000 per year without you finding or dealing with the deals! Private lending is about having investors out there: - Finding the deals - Doing the work - Paying you part of their profit. You concentrate on locating OPM and, lending that money in a secure method! "Real estate investing" as it is being taught out there is too much work! Private lending is about leveraging those investors to do all the work and you make part of their profit while doing minimal work. When I was first introduced to the concept of private lending, I had little expectations. I was transitioning out of working the pre-foreclosure market, and was about to change my real estate investing strategy. At the time, the idea of private lending was foreign to me, so I was intrigued to learn more about this investing vehicle, and to gauge if private lending would be a good fit for me, investment-wise. After formally learning the ins and outs of private lending, and having funded several private loans, I am amazed why more people, and investors in particular, are not taking advantage of this very lucrative business. Private lending is a safe investing vehicle - if done properly - and the potential payoff can prove quite substantial. Private lending is truly a worthwhile investing strategy, especially because you do not need to use your own money.
Article Source: http://www.bharatbhasha.net Article Url: http://www.bharatbhasha.net/finance-and-business.php/145435 Article Added on Friday, July 17, 2009
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