Sell Your Property Virtually in Your Pajamas
When it comes to investments in general, we have so many options to consider. Whatever you invest in, knowing the subject matter counts more than you know. There's a saying that goes "You pay for what you don't know". Meaning, the lack of knowledge can cost you dearly when venturing into new territory unprepared.
This article will help shine a light on the subject of "Private Mortgage Investing" aka Private Lending as it is known in the real estate investing arena. Many investors deploy private lending capital to purchase and renovate properties for a particular exit strategy, sometimes multiple exit strategies.
A private lender or private mortgage investor does not have to be licensed to lend money directly to a company just like a bank lends to people to buy a home. The private lender is the bank and the real estate entrepreneur or developer is the borrower.
Security - Safety when it comes to investing in general is an attractive investment. When a private lender invests in a mortgage note, it is important that the lender is secured in the following ways...
* Insurance - Make sure the insurance on the investment names the private lender as "Additional Insured". This ensures that if anything bad happens to the property like a fire that the loan amount is secured by property and casualty insurance. This added measure of security pays back the senior mortgage first. The insured amount should be equal to or greater than the financial investments made.
* Deed - Having a recorded mortgage deed and a mortgage note helps to protect the lender. The note and deed gives the lender control of the property should there be a default.
* Equity - A good investment deal offers steady returns and also a potential upside should there be an unfortunate default in payments by the borrower. This does not happen a lot, but if it does happen having equity in the deal protects the lender if they have to foreclose and finish the renovations and resell the property.
* Experience - Having experience on any subject matter makes for a safer investment. Working with a team or a company that knows the ins and outs of the industry can help bridge the gap to expedite the investment possibilities and deploy capital to go to work and return safe and sound in the bank.
Pittsburgh Real Estate Team has been buying and renovating homes, apartment buildings and commercial properties in Allegheny County and surrounding counties for years by partnering up with private lenders to restore many of Pittsburgh's old inventory of properties. We target stabilized housing markets as well as transitioning communities that are ripe for revitalization.
We make it possible for everyday folks with an IRA or Roth IRA that can convert to a Self-Directed IRA or Self-Directed Roth IRA to invest in our re-development or new construction projects. Private lenders earn a hefty 7-10% annual returns secured by equity, insurance, mortgage note and deed so they are properly protected in the investment.
Having a Self-Directed IRA/Roth IRA allows the investor to invest in more than just stocks and mutual funds. Investors have the ability to also invest in assets like real estate, mortgage notes, businesses, land to name a few. It works just like a traditional IRA or Roth IRA, but better. You do NOT have to be tied to the stock market if you don't want to.
Investing with Pittsburgh Real Estate Team, we specialize in redeveloping residential and commercial properties in the Pittsburgh area. We have an in-house construction company licensed to do construction in the city of Pittsburgh and we have almost 20 years of real world investing experience in finding under-valued properties in great markets or soon-to-be great markets.
If you'd like to learn more about how to become a private lender on an upcoming real estate or business opportunity, please Contact Us below and we will gladly answer any questions you may have about investing as a private lender soon.
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