I want to enable or rather empower you to have the opportunity to change the cycle that most people have…and actually have your money work for you instead of you 100% working for money.
Now, what is asset based lending? It is a loan made based on the value of an asset. So, in my world the asset is a “real and tangible” property. Something you can see by driving by it or even walking up and touching it.
For example, and to keep the numbers easy and small…on a property I’m looking to buy valued at $100k, a Private Money Partner would lend a maximum of $75k in order for me to purchase this property.
If I failed to pay, the Private Money Partner would get the property (which is what I know some of them go to bed hoping that I’ll default). Why would they wish such a thing? Because for the simple fact that they’ll make a ton more money if I defaulted on my obligation. In the 21 years of buying and selling real estate this has never happened because this is my livelihood and how I put food on the table. I refuse to compromise my reputation.
Where do Private Money Partners come up with this money to fund my deals? It’s their lazy money that’s just in “orbit” earning very little sitting in a Self-Directed IRA retirement account. When a deal comes along that wish to participate in, they “self-direct” funds to be wired to the real estate closing attorney and I begin paying them far better than average returns for the use of their cash.
The collateral for their capital is the property that I’m buying. Do you have collateral for your money on Wall Street? I think not !!!
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).