On this podcast episode I talk about private lending, private lenders and hard money loans.
I discuss why investors use private lenders to fund their purchases, and why this is a win/win scenario for both the borrower and the lender. I also explain why buyers cannot purchase fix and flips with mortgages and why they have to pay all cash or use a private lender. This is the essence of why private lending exists. Banks will not accept offers on properties with a mortgage. They will only accept cash offers. Buyers need to pay all cash to purchase these properties and if they don't have the cash then they need to borrow the cash to fund their purchase from private lenders. This is a private loan or private mortgage (meaning originated by a private party and not a bank). Your collateral as a lender is the property. If you have money sitting in cash, savings accounts, CD's, IRA's, stocks or bonds you could be earning a consistent return of 10% to 13% by being a private lender.
If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below:
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FIXING AND FLIPPING TRAINING
If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar
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For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com