Podcasts Business Flipping America Private Lending Part Two

Private Lending Part Two

Published: March 24, 2018, 4:12 p.m.

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Topics:
  • Private Lending
    • Why loan money?
      • Passive Strategy
        • Different taxation
        • Different effort level
      • Good returns
        • 8-10% on loans
        • More in JV Situations
          • Risk of no profit
          • Risk of loss
      • Safe
        • Proper Loan to value ratio at all times.
        • Check ups on work (especially in the first few deals with investor)
    • Ways to loan money
      • Crowdfunding - Fundrise - reports rates of 8-12%
      • Long term rentals - usually around 8%
      • Flips - 10% is more common
      • Equity Partnership
      • Gap Funding - riskiest of all, but dynamite returns.
    • Gap Funding
      • What it is
      • Advantages
      • Disadvantages
      • What is reasonable to expect.
    • Equity Partnerships
      • What is it
      • Advantages
      • Disadvantages
      • What is a reasonable return
    • Funding Rentals
      • Be the bank
        • Minimized Risk
        • Sell the paper
      • Long-term income
        • Steady
        • Safe
    • Using a self-directed IRA
      • Can invest in any or all of the above.
      • Can even invest in a property for yourself, BUT
        • Can\u2019t use the property
        • Can\u2019t work on it yourself
    • In general, longer term loans have lower returns, and somewhat less risk.
    • Short term loans have higher to potentially much higher returns and somewhat more risk.
    • First position is always the safest. Second position is riskier.