Most investors I know are perpetually on the lookout for more capital. Whether they are seeking lenders or partners, real estate investors always need more capital to build their businesses. So, where should you look? Once you get comfortable presenting your business to a potential lender or partner, you will find that some sources of capital work better than others for your deals.
In my years of investing, I have found one particular source of capital to be the ultimate for both you and your money partner when doing a private loan. While this vehicle works best as a loan source, when it’s used properly, the investor can double their money quickly through real estate loans. The investor has tax advantages not available if their loan came from other sources, and they will most likely be OK with you paying interest when the loan is repaid, not during the loan term. Investors tend to invest over and over with you through this vehicle because it’s very hard for them to put the money in their own pocket or use it for something else. This investment even comes with a built-in third-party custodian who makes sure that your loan is compliant with regulations—and this custodian is paid by your lender, not you!
Related: How to Improve Your Odds of Scoring a Loan With a Private or Hard Money Lender
How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties
This is the dream right? Going from zero to 10+ rental properties, providing stable cash flow and long-term wealth for you and your family, and building a scalable business model to boot! Learn how this investor did just that, in this exclusive story featured on BiggerPockets!
The Private Loan Source Perfect for Growing Your Real Estate Portfolio
In today’s video, I go into detail on the subject and tell you not only why this loan source is great but also how to find lenders with them. They are probably all around; you just don’t know it. Watch the video to learn more!
[Editor’s Note: We are republishing this article to help out our newer readers.]
If you enjoyed today’s video, be sure to leave a comment here so we can get a good convo going.
Thanks for watching and have a great and profitable week!