What is a Private Money Lending?

It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property thus securing their investment. We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. We offer low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment.

For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That's a 75% loan-to-value ratio. This is obviously a much safer approach from that taken by conventional lenders. These banks get into trouble because they make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.

As a lender, will never lend more than 75% LTV. It is in the lender's best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. We don't violate this rule, because security is at stake.

IRA Lending

Are you currently earning the return you want on your investment dollars? If not, you should be, and you can with private lending in real estate! Private money lending is a great alternative to the stock market, especially in these tough economical times. We can get you started in private money lending and investing in real estate easily. You too can enjoy the benefits of great returns through private money lending in real estate.

Interested to find out how you can earn the returns you want, secured and insured, right now? Click the link below and find out more about becoming a private money lender, and find out how you can build toward a fantastic retirement through private lender real estate investments.