How Can I Become a Private Money Lender? [ 

why avoid brokers?

Mark Manley Why avoid the “middleman”? $$$!

Loan term paper? Where can I find this?

Hi Dave, what about the tax man. In BP's example in this video he made 10k on his 100k in the first year. Doesn't 10%-37% of that disappear to the IRS as capital gains?

@@ffliberty There are a few ways to lower the tax burden, but yes. The government always wants its pound of flesh REGARDLESS of how you invest! Note: many people do this with tax deferred funds in their IRAs. 😉

Documents should be created by lawyers, then adjusted to the situation, usually there is a fee at origination 1-4% followed by monthly payments of 8-14 although 10-12% is most common, closing costs and title search fees are covered by the borrower, there are plenty of lectures / seminars / courses if you’d like to get class like information but overall it is a very basic concept to grasp and it is better to reduce your margins slightly and leave the technicalities to the professional (lawyers, accountants, ext). You choose a borrower depending on the type of loan you chose to make, if it is some sort of flip, look at their track record & skin in the property, if it is a cash equity line of some sort make sure that the property is owned outright and loan out 50-60% of the collateral property’s fair value since if they default you will have to fire sale the property below market price. Finding customers is the hard part, use your network and leverage the internet. Lastly, being a real estate agent working with higher end investors helps Pool funds for bigger deals. Hope that helps!

​@@jank3441any way I can reach out to you for more info?

How those an investor set him self as a separate Entity (LLC) trust or any For tax purposes or Liability ?

i need a private lender asap

from what i've heard so far, 10% is typical here in the seattle area: 10 - 12%

Do you do private lending for personal loans. If so my contact me at mhumphr5@emich.edu

It seems like everybody who puts a RU-vid video out explaining how lending works, says 10%. I think it's for simplicity's sake when showing people how to do the numbers for interest only

@@nightterror007 I feel like 12% would be an easier number so 1% a month lol

Hi JPS! what the rates you have now when there is historical low rates in the country.

What do you want the software to do?

Hard money lenders are private companies (or investors) offering asset-based loans that borrowers secure with real property.

that's basically what hard money loan companies do

@@AlexanderMoline I thought hml loan out their own funds rather than teaming up with other lenders to loan out money.

Get your paaydaaay loan now => twitter.com/3a000d80820f32e35/status/809350192776347648 How Can I Becoomee a Privаte Money Lender AskBP 065

Justinmedfordlending@gmail.com +1 760-705-4768

I think it's about 9.7%. Still though I do notice they like throwing lower numbers out there. Last 10 years though has been like 14%

hi dave, thanks for sharing all your knowledge here, that's awesome! can you tell us a little bit more how to taking money out of self directed ira would work for private money lending? currently i have a 401k and if i want to take money out of it they charge me a fee plus i have to pay it back (to my own 401k) with 5% interest. are the conditions for pulling money our of IRA similar?

Georg Weber Hi Georg! A 401k is STACKED AGAINST using your retirement funds for anything other than traditional instruments, like stocks, bonds, mutual funds, money markets, etc. It’s frustrating that to invest in anything else, they make you either borrow from your 401k or take an early withdrawal with PENALTIES and TAXES. Ugh! The blessing I had was a CHANGE IN JOBS which afforded me the opportunity to move all of my 401k funds into a self-directed IRA. I researched several and decided on Equity Trust Company. They are a very good IRA custodian and offer convenient control of funds. They charge an annual fee based on the total value of my account. Then came finding the right property rehab expert. I did, and closed 15 rehab deals with him over many years. Then I met another even better borrower who worked with me and my lawyer to structure a LoC with his property investment and management company. And the rest is history.

@SUNDRA SMITH solo 401k you can pull without tax for real estate purchase if I'm not mistaken

I have to go to youtube settings at the top and change the playback setting to a slower speed

That’s a payday loan, not the same, borrowing for productive uses is considered debt leverage and thus potentially an asset, borrowing for consumer spending (especially at high rates) is pure financial illiteracy

You realize he's describing a loan to a real estate investor, right? Not some poor guy off the street.

Scummy? Banks do this every single day. It’s wise and profitable to be your own bank. Good luck!