All Forum Posts by: Jaspreet Baveja

@Steve Chan - you're welcome. I would confirm your specific situation with a CPA and a custodian you're considering for your SOLO or Self Directed or other IRA accounts to confirm this approach. I am a Private Money Lender myself, and my goal is to help others place their funds in this investment vehicle as well. I have been educating a lot of people in this space recently, have helped quite a few friends and family invest in it, and always looking to grow this network of like minded people who may find this passive income strategy attractive enough to become an investor! The lenders I bring to the table leverage anything from HELOCs to Retirement funds, Credit Cards to Savings to invest in this amazingly passive investment vehicle with a secured lien and ample layers of recourse to recover your principal investment at the bare minimum. Best of luck and stay safe everyone!

@Steve Chan - If you have a ROTH or Self Directed ROTH IRA, you can lend those funds out to investors, as a secured loan, backed by Physical Real Estate, for any duration / rate you may choose (beware of usury laws), and then keep making that chosen rate of return into your IRA. When you're an active employee, you can't take out the 401k funds anyways, or even if you do with the fines etc (as you mentioned), you REALLY need to be sure that the alternate investment vehicle is going to generate more returns and have a LOW probability of default/failure. You can do the lending from your regular personal / business, checking/savings accounts as well, and just counts as an "Ordinary Income" or 1099-INT on your tax returns.

@Steve Chan - Why does Real Estate investing have to be owning physical Real Estate? Notes, Lending, Syndications etc are all valid methods of passive investment!

You know @Aaron Watkins, it's like if you borrowed funds from your HELOC, Home Equity Loan, 0% Balance Transfer Credit Card, or any other source of "cheap" money, to lend it out, and keep the difference! Credit Arbitrage..? Haha... I have been lending for a couple of years, and have VERY successfully deployed, or helped others deploy all those mentioned strategies! Feel free to reach out if you want to chat further... You just have to make sure your investment is safe, secure, in 1st position, with loads of equity in the deal, and the borrower is a well-seasoned entity / person that can deliver on the promised return/strategy! Stay Safe!

P.S. - This applies primarily to self-originated Notes / Loans, vs just buying them! The remaining duration and your "borrowed" fund's duration would also play a factor there... best of luck!

@Samuel J Meyer - as @Michael Ohara & @Taylor L. Have mentioned, investing passively, TRULY passively, may require an upfront effort of getting to know the borrower (if lending) or the syndication operator (if going that route), but then that's it. You just choose your investment amount, a return rate you're comfortable with, and hit GO when you find that investment! With a LOT of loans originated under my belt and a 0% default rate, I can personally vouch for the passiveness of this Private Money Lending strategy! I also invest in syndications and want to be a GP on larger multifamily deals for generational cashflow, but this is the best path I've come across to learn the process, grow in experience, and of course my cash to invest with! I'm also helping others get started in this space now. Best of luck!

Hey @Anthony Jasmine, Welcome to BP! Congrats on coming out of a crappy situation, stronger and more determined to change your life for the better! REI can be an extremely profitable space, as an ACTIVE investor (Flip / Wholesale etc), a Passive Investor (Buy & Hold, Syndications etc.), or a combination of the above! I am actually a Private Money Lender and I have found that the ability to originate my own Loans, and lending on MY terms, has given me the flexibility and time and life that I always wanted, WAY more than when I tried being a Buy & Hold investor, or even a flipper! Been able to leave a W-2 job of 8+ years (1 yr ago), traveled to over 9 countries with the wife & kids since then, while generating EXCEPTIONAL returns on my investments with MINIMAL effort! I can honestly say, I spend maybe 8-10 hours a week generating almost 70% of my W-2 income now (even through COVID)! I hope that gives you a drive, desire and a push to investigate further! Best of luck and feel free to connect / reach out whenever!

Hey @Aaron Watkins, as @Jamie Bateman & @Chris Seveney and many others have eluded to above, Notes Investing is definitely an interesting investment vehicle, with it's own set of drawback and "gotchas"! I don't think that you should only focus on "procuring" your own Notes though, whether it be a pool / fund / syndication or self-funded, you should definitely explore the option to Originate your loans! You get to vet the deal/borrower/asset more closely, leverage a team of lawyers to draft the Note, bring on an unbiased Broker to get a BPO (vs an appraisal), and just overall negotiate the terms, returns, fees, points etc up front! Just a slight twist on everything "Notes"! You can still then deploy any of the aforementioned exit strategies! I would love to talk to anyone more interested in perhaps originating Private Money Loans / Private Notes vs just buying them up! (Although I have those too now! LOL)...

Man... Talk about Passive Income and European travel! Thanks to my 100% passive (ok, fine, 95% passive income) strategy of investing in Private Loans using my own money to fund other investor's RE Investing, I have been able to quit my job of 8+ years in Healthcare Compliance Consulting, and traveled to 9 countries with my family of 4 last year! Drove through 7 of those in Europe ;) If you ever want to explore that option, which would allow you to diversify your portfolio, stay out of 100% real estate, yet still be able to generate some AMAZING returns on your investment, feel free to reach out and we can chat! Best of luck everyone!

@Jeff Wright - Hey there Jeff. I've been working on creating resources for new (potential) Private Lenders. I haven't yet published any of my own content, but was featured on a podcast as I've now been able to complete (& help others complete) over 100 new Private Money loans in excess of almost $5M in deals. As long as you are able to find a reliable borrower, leverage unbiased 3rd part assessments of the property, and be able to get a professional (lawyer or investor or both) walk you through the paperwork and process, you're going to be in a very secure position and generate great passive returns for yourself. It gets taxed as Ordinary income, like a BofA/Wells/Chase etc 1099-INT form. If you're interested in learning more, and want to leverage my network at no cost to you, please feel free to DM me. Look forward to chatting with you soon and best of luck either way! All I can say is that it is most definitely a worthwhile investment strategy, considering it allowed me to replace almost 70% of my income from a well paying 8+ yr long FTE job as a Healthcare Regulatory Compliance Consultant!

@Jaden George - Good for you man! I would echo what @Juan Deshon said, put the money into the Roth and start investing in real estate as a Private Money Lender. I've been blessed enough to quit my job by leveraging my returns from this amazing Passive income strategy. Feel free to reach out if you think you'd want to go that route, especially if you want a near 0% risk by originating your own loans to very well seasoned investors with over 150 to 200 deals a YEAR under their belts for over 10 years! Heck I've helped my family and friends originate loans as little as $10 to $15k with easy double digit returns! This truly is an amazing way to passive invest and grow your capital if you ever wanted to expand into owning your own real estate. This will also help you leverage someone else's analysis, a Title Company, a team of lawyers etc to learn the documentation, steps, and overall steps involved by spending none of your own money! Best of luck pal!