Have you ever used or considered using private lenders for your real estate business? That is, borrowing funds from private individuals to purchase your real estate investments. If not, why not? You should. Such a strategy can be very powerful for the real estate investor.
Now take those thoughts one step further. Have you ever considered being the bank? Have you ever thought about being the person that lends the funds for others to invest in real estate? If not, why not? It too can be a very powerful investing strategy and it is something that you, as an investor should learn about.
I recently read Be The Bank by Ben Lyons and I found this book to be a great introduction to the world of private lending. Mr. Lyons has over 30 years of private lending experience and his book takes you through all the basics and more.
He begins his book with a very good question.
Almost every bank in the United States makes a large portion of their money from lending money secured by real estate. So why doesn’t the individual invest in mortgages as part of his or her investment strategy?
He answers that it is because most simply do not understand how private lending works. This is why he wrote the book.
Beginning with the history of the mortgage, Mr. Lyons, using his own real world experience, explains:
- The various types of mortgages available today.
- Which types of mortgages private investors like you and I should consider investing in.
- Who would be interested in borrowing private money and why.
- How a private lender should qualify or underwrite potential borrowers.
- The returns a private lender can expect.
- Loan structures, property types and risk.
All in all, I consider Mr. Lyons book to be a very good read for the real estate investor. Not only will it perhaps get you thinking about different ways of investing, but it will also teach you how private lender view risk and what they are looking for in a borrower. Either way, this book is a win for the smarter landlord. Order your copy here.
By ordering this book through Smarterlandlording.com, I will receive a small commission to help with the upkeep of this site. This commission in no way changes the price of the book for you. I have no relationship with Mr. Lyons, I simply find his advice and knowledge to be potentially valuable to my readers. Please help support Smarterlandlording.com by ordering a copy of Mr. Lyons book through this link. Thank you!
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
