Why be a Private Mortgage Lender?

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Investors: Earn 8% to over 23% on your money - secured. Really? In Post - 2008? Yes - You -CAN!

PROVEN - WEALTH - FREEDOM - CASHFLOW - CONTROL - MARKET EXEMPT

Proven, Historic & Ubiquitous

It doesn't matter where you live or where the security is located. Private lenders are EVERYWHERE. Any country, any city, any town, any hamlet or any place inhabited by humans. Private lending is everywhere. The content and principles discussed in this website are applicable to you, no matter where you live or choose to invest. In some examples and checklists, the security described is real estate, however you can apply the general principles to any other type of asset class.

This business is nothing new. Private lending is a global affair that can be traced back thousands of years before the Common Era. It is a proven way to achieve single and multi-generational wealth for individuals and families. Indeed, many visionaries created sufficient wealth to pass through to generations of decendents. A simple walk through wikipedia in reference to the history of money lending indicates that there is proof money lending was well established in India as early as 2000 BCE. Specifically, the act of lending money was written in the "Vedas", which is a collection of ancient Hindu texts (Source: Google: Keyword "Sacred Hindu Texts"). Further, money lending was also very common in Europe, where "the vast majority of money-lenders in the [Roman] Empire....were private individuals, since anybody that had any additional capital and wished to lend it out, could easily do so." (Source: Wikipedia: Key Word "Moneylender"). Despite its ubiquitous ancient roots, in today's modern era, many investors don't understand that you don't need to be a big bank or a finance company in order to create wealth through money lending.

Real Estate & Non-Real Estate Methods

Private Lenders typically fall into two groups: those who loan against both real estate-secured and non-real estate secured assets and those who loan against only real estate secured transactions. Non-real estate security consists of precious metals (gold, silver, bullion, jewellery), financial instruments or other asset classes. Most of private individuals prefer to lend their money against the security of a tangible nature, namely real estate. Real estate can't be "lost" or "stolen"; it is an immovable object with a defined market value that might fluctuate in value of time, but the values tend to always go up; after all, "we are not making real estate any more". Given the laws of your country, it is easy to secure against real estate and, in the event of default, most jurisdictions make it easy for investors to collect on their debt.

Free Market Rules

Simply lend your surplus cash or retirement funds, secured by whatever makes you happy: an ounce of gold, a waterfront home, a collector's car, anything! So long as the asset which the borrower will provide you as security is of value to you, and, in the event the borrower does not repay you and you have you have to enforce your security, you won't mind owning the asset some day. Simple. Easy. No muss no fuss. Charge whatever rate makes you happy. Be warned, depending on your country of residence, there is often a legal limit to how much a lender (private or otherwise) may charge a borrower in interest and fees. If your annual percentage rate (APR) is greater than the legal limit, you may be charged with the criminal offence of "usury". The legal limit usually depends on what you are securing your loan with. For example, In Canada, the limit for real estate secured transactions (mortgages) is 60%. In the same country, for pay-day-loan type of loans, the rate can be over 500%. Your lawyers and business advisors can help you understand your legal obligations as a money lender.

As an investor, there is nothing more satisfying than looking at a copy of a security document and seeing your name registered as a lender. Look at the bank profits for the past 800 years. Once you understand this business, you will understand one of the oldest investment businesses in human history. Mom and Pop individuals were investing in private loans 2000 years ago, so YOU can do it today.

Wealth

Increase your wealth by investing through lending. There is nothing like it. Due to the nature of the investment business, only Accredited Investors should consider private lending. Since there are risks associated with this business. (see Notices). A simple "rule of thumb" is to invest in security that you would not mind owning if you had to collect on the transaction.

Mean/Range of select private lending yields as follows:

Mean of nominal/face rate: 16%

Mean of total lender ROI (including lender fees): 23%

Range of Lender Yield: 9% to 48% on a per annum basis

To as much ass 500% and more, depending on your security.

Flexibility

You are free to invest in any transaction that suits you. You are free to stand aside any transaction that does not suit you.

Cashflow

Monthly, weekly, quarterly or annual interest payments made to you, your trustee, or your company.

Control

Its your money, your lawyers, your deed/title/mortgage documents, your decisions.

Market Exempt

Since you are not a bank or trust company, there are none of the regulatory requirements that are often imposed by market regulators. See Regulatory Notice.

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