- Higher Returns: Private lending often offers higher returns compared to traditional investment and lowest risk management. As a private lender, you can negotiate the interest rate and terms of the loan, potentially earning a higher rate of return on your investment.
- Diversification: Private lending allows you to diversify your investment portfolio. By allocating your cash equity in rental investment portfolio turn into become the private lender, short term fundings with higher interest return, you can maximum your investment profits and minimized your risk across different asset classes, reducing the impact of market fluctuations on your overall portfolio profit returns.
- Control: As a private lender, you have controlled the all-risk with the real property collateral with instrument documents Lien: Deed of Trust and Promissory Note and over the terms of the loan, including the interest rate, loan amount, insurance risk cover, and repayment schedule. This level of control allows you to tailor your true investment to better suit your financial goals and risk tolerance.
- Passive Income: Private lending can generate short terms 1, 2, 3, 5, year passive income, as you earn interest payments from the borrower without actively managing the daily stressful rental property. Once the loan is funded, you can sit back and collect your payments without the day-to-day responsibilities of property ownership. Good for retiree people who wants to earn passive incomes to live oversea with enjoyment life.
- Flexibility: Private lending offers flexibility in terms of investment size, timing, and structure. You can choose to fund whole loans or participate in fractional lending opportunities, allowing you to diversify your investments and manage your risk more effectively.
- Relationships: Private lending can help you build relationships with borrowers, real estate professionals, business owners and other investors in the industry. These relationships can provide access to future investment opportunities and valuable insights into the real estate market.
- Cash and cash flow: Cash is the buying power opportunity
Before becoming a private lender, it’s crucial to conduct thorough due diligence, understand the risk, the terms of the loan agreement, and seek advice from financial and legal professionals.
Leon Ly has more than 20 years of experience and well known in this lending business for the clients.