Let’s discuss the topic in the first bar above “You get to act as the BANK and determine the terms”. The majority of my Private Money Partners have a Self-Directed IRA account. In last week’s post I explained a little about a Self-Directed IRA. The companies that my Money Partners use to manage their accounts can be found in the links area on this page. Today I’m going to touch on the subject of the benefits of Private Money Partner Lending.
When I have a house I am looking to purchase, I present the details to our Affordable Housing Partners Group. A Money Partner from the group will step forward and say that he or she wants to fund the deal.
Why? What’s the benefit? What does the Money Partner get out of the deal? What’s in it for him or her? Well, I’m glad you asked. A Money Partner wants to be in on the deal because their IRA acts as a BANK. It’s enticing to Money Partners to be able to act as the BANK and determine the terms.
My Money Partners Act As The Bank And Determine The Terms
If you’re going to go to a bank today to get a loan, that bank or lender is going to tell you exactly what terms they’re willing to lend money to you. Well if it’s your Self-Directed IRA account and your Self-Directed IRA is acting as the BANK, you’re getting to set and determine those particular terms; therefore, is going to set the rate that your IRA is going to GROW. That’s what is in in for Money Partners! Wow…can you do this with Wall Street? ABSOLUTELY 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.
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).