REI WEALTH MONTHLY Issue 31 - Page 7

PRIVATE LENDING BRUCE E. DINGER Essentially, private money lending is a lender’s opportunity to become the bank, reaping the profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream - while at the same time, provide excellent security and safety for your principle investment. You can do what the banks have been doing for years…make a profitable return on investments backed by real estate. There is no other investment vehicle like it. Through private money lending, lender’s have the opportunity to become the bank HOW THE PROCESS WORKS The process is simple. The Residential Redeveloper (RR) finds an extremely undervalued property to purchase - and once lender gives the green light, the RR borrows the funds to purchase and renovate the property. At closing, the lender receives a mortgage on the home along with other important documents. Next stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the size of the project), the RR will list and sell the property. When it’s time for closing, the lender receives his principle plus 10% interest payment. It’s just that simple! The goal is to keep turning that money for the lender and keep them making substantial profits so they keep coming back – building a long term mutually beneficial relationship. OVERVIEW OF THE PRIVATE LENDING PROCESS