If the light bulb ever turns on for you and you decide to provide funding to a person like myself for a real estate purchase, I’d like to give you some free advice.
You should consider what a reasonable interest rate looks like based on the type of loan (short-term or long-term), the loan amount, the risk involved, and perhaps most importantly, the experience of the real estate investor.
While there are those out there who will pay up to 12%, or even 18%, interest, these borrowers tend to carry extra risk. Less experienced real estate investors will often pay more for their loans.
You need to consider whether the higher interest is worth additional risk. That’s my tip for this week.
********************************* 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, oftentimes, 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).