As retired investors seek to diversify their retirement portfolios, the returns earned in private money lending are very enticing. Private money lending is called, â€˜trust deed investing,â€™ and under this investment model, investors rely heavily on the expertise of seasoned real estate investors who identify good deals. Investors who are doing private money lending are making loans to these seasoned real estate investors on real estate with income-producing potential or an upside on value. Because these loans are made at a lower loan to value on already discounted real estate, private money lenders find themselves in a lower risk asset as compared with other investment opportunities.
In California, more and more investors are enticed by the returns offered by private money lending. These returns range from 9% to 12% annually. Because banks arenâ€™t readily lending on investment properties, real estate investors are depending on private money lenders to finance their deals more and more.Â Although most can qualify for a bank loan, there are usually time constraints on a good real estate deal. Because private money lending is much faster than bank lending to fund on a deal, even those who can qualify at the bank are seeking out private money lenders to finance their deals. For private money lenders that work with a seasoned and professional broker to manage all of their transactions, returns between 9% to 12% annually seem as effortless as putting your money into the stock market. However, rather than just â€œletting it rideâ€ in the stock market, private money lenders are parking their cash into hard assets. And in a rising tide of values, real estate at the right price is a relatively safe place to park that cash.
For more information on trust deed investing, click here: http://privatemoneyutah.com/contact-2/