How You Too Can Become A Private Lender
I would guess that most of you have heard of Private Mortgage Lending or PML, but unless you are involved in it, I am willing to bet that you did not realize how large of a market that it has become, nor just how lucrative it is for the players involved in it.
While this is a hidden underground market, it is estimated that it is in the hundreds of billions of dollars. It is big enough that the intrepid Billionaire Richard Branson of Virgin fame just started a company to service it. Think there is no money in it? 
I will have a more detailed story on that shortly.
While the sub-prime market has been in a free fall, the PML market is experiencing a very quite boom. As the name implies, information on it is very hard to come by because it is private but, I do have my sources and they say things have never been better and their foreclosure rate has not increased at all. Just for full disclosure, we are in the market ourselves and it is good.
If you are interested in pulling down 12 to 18% + returns on your cash safely, then learning how to become a Private Lender may be just for you. Some of the people that I know are doing even quite a bit better than that, if you really know what you are doing, you can push 40% on your returns.
Here is what a typical Loan might look like. This one has an equity sharing component. Not all loans look like this. It may just be straight interest payments. Typically they range form 6.5 to 18%. Everything is negotiable.
One of the great things is that you can do this in your Roth IRA and also with a few other retirement accounts. Of course you should consult your financial planner or accountant or contact the sources that I am about to give you.
Here is a basic overview of what PML is all about.
Ø An investment that you–not some nameless, faceless “expert”–control.
Ø An investment that brings great, predictable returns year-in and year-out, no matter what’s happening in the local or national economy.
Ø An investment secured by something real and solid–something you can put an actual value to, so you know that its worth isn’t driven by speculation or fear or which league wins the Super Bowl.
Ø An investment so safe that your banker does it every day–and so safe that the IRS has approved it for your retirement fund.
Ø An investment so proven that it’s been around longer than the stock market, longer than the United States–even longer than paper currency!
Ø An investment that doesn’t require “insider information” to work for you–or a PhD to understand.
In short, an investment that gives you safety, security, control, as well as high, fixed yields–and that is hands-off and hassle-free at the same time. Boy, wouldn’t it be great if someone would invent an investment like that? Well, guess what?
Your Perfect Investment Already Exists– t’s Called Private Mortgage Lending
You might be asking why is PML doing so well. It is because the normal lenders in their lemming like ways are pulling out of all markets and they have almost always treated professional Real Estate Investors like Red Headed step children anyway.
Even though the Investor may have a hundred deals that he or she has paid back and been on time with payments for dozens of houses, because of the way the credit scores are weighted, they are not considered a good lending risk when point in fact, they are probably the best risk out there.
This is particially because of the wonderful tax breaks that Real Estate Investors get, they may have pulled down several hundred thousand dollars in a year but because of all of the right offs they may only show $20,000 in taxable income.
I heard Robert Shemin who has over 450 properties say that one year his taxable income was just $14,000 even though he has several residences and a great penthouse in Miami and gives away at least $22,000 a month for a charity to support homeless children.
If you are working with a seasoned Real Estate Investor, because they have to put their own sweat and equity on the line, they are truly the best at determining what actual and potential value of a property is. This is true with Residential and Commercial property. Because they have been doing this for a living, they usually have it down pretty well.
Because a seasoned investor buys property at wholesale to begin with say 20 to 30 % below real current values, they have a good deal of cushion built into every transaction even if the market does drop 10%. Does this make sense?
So, as a private lender, these guys and gals are the ones that you want to lend to. They are geese that lay golden eggs and they are pulling together as much money as possible because there are some great, great deals out there to be had.
If you would like to read the full report put together by 888 EZ Funds and Vena Cox-Jones just click below. Vena has not borrowed any money from a bank in over 10 years, but has done well over 500 deals. 888 EZ Funds provides a wide variety of commercial lending and Real Estate services nationwide.
Click Here to get the free report. Scroll to the bottom of the page and do the name, email thing or just go to:
I guarantee you that it is well worth the read. You just might find another path to 20% plus returns.
