Be a Private Lender of Real Estate
and Earn Big
If you are planning to diversify your investment portfolio, then you may want to consider adding real estate as a viable option. There are many more benefits to investing in real estate than in any other investment vehicle out there. Now is a great time to be a private lender of real estate
This list is by no means inclusive, but let’s review seven here.
7 Private Lender of Real Estate Benefits
- Hands off: Being a private lender of real estate is better than being a landlord. You get to reap the rewards that a rental property can bring. You can do this without having to get your hands dirty with building repairs or dealing with tenants that landlords have to deal with daily. Being a private lender of real estate is truly as passive investment.
- Equity Partner Benefits:
If you join a syndicate like Simple Acquisitions you will be an equity partner. This means you share in all the benefits of the investment and not just a set return. You share in the appreciation, the depreciation and the cash flow. Because we invest in emerging markets, as property values go up it increases our chances of increasing the net operating income (NOI).
- Secured Investment:
Unlike with stocks, bonds or precious metals, your investment is secured in the asset. You become part owner of the property.
- Easy access to funds:
With real estate you don’t need liquid cash on hand to invest. Once the asset increases in value you can refinance and get your down payment back. You can use your 401K or IRA. Just contact your 3rd party administrator to find out the details.
- Appreciation & Depreciation:
Income-producing real estate investments can also provide excellent appreciation in value. Properties will increase in value when the net operating income of the property improves through rent increases and effective property management. There are also tax benefits like depreciation which allows us to shelter the income from tax or which allows you to earn that cash TAX-FREE, and hedges on inflation. Real estate is one of the few assets that react proportionately to inflation. As inflation occurs, housing values go up and rents also increase.
Real estate allows for considerable leverage. Banks like to lend against multifamily properties. They like to place money in cash-flowing, stabilized properties. With leverage, over time you can purchase a property with a much smaller investment than if you had to buy it all at once.
- Supply and Demand:
According to Grant Cardone, an investor who own almost 4,000 units there are many indications that multi-family apartment investments will continue to be great:
- 75 million Baby Boomers are heading to retirement
- Many of today’s apartment complexes may be converted to retirement communities in the future
- Many millennials aren’t buying homes
- It’s getting more expensive to build new apartment units
All of these factors contribute to the growing requirements for rental accommodations.
Like with any investment, there are risks. So as a prospective private lender for real estate you need to weight the pros and cons of each and research which one(s) you are most comfortable with. Working with an experienced real estate investing company who understand the real estate financials and the market will certainly help reduce that risk.
There are reasons most of the world’s richest people invest in real estate! Many of these reasons were identified above.
Join the rich and invest in the greatest investment vehicle. Become a private lender for real estate!
To learn more about how you can participate in a real estate opportunity as a private lender, drop us a line. Get your money working harder for you.