Tuesday
Jun052012

Private Money- An Alternative Solution when the bank says "No"

1st Trust Deed investing means focusing capital into local investments- your own backyard. Called private lending or First trust deed notes and mortgages, it is the 3rd way people buy Realty (the other 2 are cash and bank loans). 

The past 4 years taught investors one thing- beware of international  investing where the risk is shared by everyone ( so no one is responsible)! The new opportunity for investors is to NOT go global BUT rather local. Main street need small loans, credit since many banks are broken in addition to Wall Street and the bankrupt government agencies FNMA and Freddie Mac (FHA is not far behind!)

The key to local lending, which I call Back Yard Banking is to match investor capital with borrower needs. Also called private loans or seller financing, it fills the gap when regular lending isn't working. See the attached article written for Scotsman's guide for more info:

http://www.scotsmanguide.com/default.asp?ID=2998&part=1

The way to fix income for investors is to find quality loans and fund them with the help of experienced, licensed private mortgage brokers.

Returns are secured by real estate equity (since all loans are first position). Also, returns are high, starting at 8%. 

Go local to find high yielding income!

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
« Seller Financing- How to Sell Houses that don't qualify for Bank Financing. | Main | Investors who do a few mortgages on the side... »