Mon, 10 December 2018
#218: You can achieve 10.5% Cash-On-Cash Returns with debt investing.
With Private Money Lending, you rent your money (not your property) to a borrower.
Their real estate is your collateral.
This way, you have greater passivity and stability than most equity real estate investing.
You participate on the DEBT side rather than the EQUITY side of real estate investing.
You have a fixed, predetermined rate of return.
You are in first lien position. This means that if your borrower defaults, you can get paid back first.
This is debt syndication. That simply means that a number of lenders make a loan on one construction project.
Act and learn more: GetRichEducation.com/Lending
Most lending durations are 12-36 months. Typically, that’s how long you receive monthly cash flow payments, with your principal returned at the end.
Today’s guest, John Larson, Managing Partner at American Real Estate Investments, tells us about debt syndication in the Dallas-Fort Worth market.
Medical and office space are often developed, with 25-35 lenders on $2M-$4M properties.
If something goes wrong with a project, we discuss how you’re repaid.
Want more wealth?
1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
03:35 Before making a loan on someone else’s real estate - here's what you must know.
05:24 First lien position, debt syndication.
08:12 Personal story of when I met John Larson.
10:25 Motivation for debt rather than equity investing.
12:48 Astounding strength of Dallas-Fort Worth, TX economy.
14:11 If something goes wrong, how does the lender (you) get repaid?
16:57 Who is debt investing ideal for? Cash, IRAs, 401(k)s.
21:23 How the developer identifies the right opportunity.
24:14 What if something goes wrong?
25:04 “Say I invest $100K, when and how am I paid?”
28:15 John is a new author. I wrote the book’s foreword.
31:39 See if Private Money Lending is right for you at GetRichEducation.com/Lending.
Private Money Lending: GetRichEducation.com/Lending
John Larson’s Book: Passive Income Guide
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ProducersWealth.com
Turnkey RE: NoradaRealEstate.com
Find Properties: GREturnkey.com
GRE Book: GetRichEducation.com/Book