Are you interested in growing your passive income?
The most obvious way to invest in real estate is to actually go out and buy some property.
There are also less obvious ways to invest. Two of the most common ways are as a private lender or as an equity partner.
You’ve probably heard of the term “hard money lender.” These are super high-interest loans that investors may pursue as a lender of last resort.
There is also something called a private lender, where loans are provided to well-established investors on well-collateralized deals. They don’t get the crazy interest and fees of a hard-money lender but the deals also have a lower risk due to the borrower profile and collateral.
I’ve also recently learned of a way that multiple lenders can be put together on one loan and serviced through a 3rd party servicing company that handles all the legwork, collections, and foreclosure should it go that route.
The problem used to be that a private lender needed enough money to fund an entire deal, but with 3rd party payment processors who can handle all the paperwork, now investors just need to meet a minimum threshold, usually 1/5 – 1/10 of the total loan amount.
So investors can diversify risk by investing in more deals and also can have access to more deals because the minimums are lower.
What’s there to not love?
If being a private lender is something that interests you, please scroll down and fill out the form.
Equity investments are higher risk because you are technically an owner, but the upside is split with the equity partners. Partnerships can be as small as two people or have as many as hundreds of investors.
For smaller groups of investors, it’s usually a lot less formal and generally done in a single purpose entity such as an LLC. With 5 partners or less, it’s easy for everyone to have input and say into the operations and avoid securities issues. Often, these are smaller deals and could range from $100k to a couple million.
For partnerships with passive investors, there can be dozens of limited partners who each invest a small percentage of the total equity. Often, deals like this range in size from $2-$20 million. They are typically larger in size due to the fixed costs related to SEC regulations, attorneys fees etc.
If you’re interested in learning more about how equity partnerships work, please scroll down and fill out the form.
I’m very well connected in several strong real estate markets, including Massachusetts (Greater Boston and Central MA markets) as well as Dallas – Fort Worth (DFW) and Atlanta.
This is not an offering nor an offer to sell a security nor does filling out the form get you immediate access to deals or anything like that. If you are interested in learning more about how private lending or investing works, let’s start the dialogue.