As the economy is teetering back and forth at this time and small business owners are finding it increasingly difficult to work with banks and credit card companies, along comes an alternative lender... a private lender. I first ran into the opportunity of working with a private lender when I was denied a loan at a local bank for the purchase of an investment property.
I approached a friend who had just come into some money with the opportunity of getting it out of a CD earning him 1% and instead, become a private lender who could earn 10-12% on his money. We sat down and I explained how I purchase properties at a discount, rehab those properties, and then sell as quickly as possible. He was excited to see the before and after pictures as well as numbers from previous properties that had been flipped. Of course I explained that there was some risk in lending money... that being we could end up sitting on this property after it had been rehabbed and while it is on the market to be sold. He understood the risks and from his standpoint, the rewards of becoming a private lender far outweighed and risks.
More to follow...
