REI WEALTH MONTHLY Issue 31 - Page 8

PRIVATE LENDING BRUCE E. DINGER HOW THE LENDER BENEFITS FROM PRIVATE LENDING The private money lender (PML) can benefit greatly from investing their capital. A real estate mortgage/ deed of trust provides them with security instruments they would not get with other investments. The PML also has added layers of protection because of Done correctly, equity is built in the purchase of the home, how the RR buys, and because the educated RR are buying 30-40% below a retail buyer – that PML has recourse available in case the creates instant equity at purchase. Also, in a typical transaction, RR were to default on the loan. RRs cut out the middleman cost, such as: commissions, mortgage broker fees, loan fees; and attorney costs are also lower because RR currently pay 4-5 times what a there is less work for them to review. typical bank CD is paying. Rates may much, An experienced and educated RR is able to offer buyers a fully depending on the purchase price and renovated home at or