If you have a lot of capital, you might want to consider private money lending as opposed to just keeping it in a savings account. This type of investment strategy can have a couple of worthwhile payoffs that you might want to consider.
You Get to Manage Terms
With any real estate investment, there are terms that need to be worked out like the interest rate people are going to pay and the monthly premium. When you give up your own money to real estate investors through private money lending, you are in total control of the terms.
That gives you an amazing opportunity to directly impact how much money you receive over the years while real estate investors work to pay off the money you owed them originally. Just make sure your rates are still fair so that you don't have trouble attracting interested real estate investors.
Avoid Real Estate Investing Yourself
If you've had enough of investing in real estate to earn money or just don't ever want to start, then private money lending may be a great solution if you have enough capital to do so. You'll still be making money through real estate, only you won't be the party that has to purchase it.
Instead, you'll be giving up your own capital so that others can get the real estate of their choice. That's nice because there is less commitment and you'll earn money on a consistent basis still.
Consistent Stream of Revenue
There are a lot of investment opportunities available that have a lot of risks. For example, putting money in the stock market doesn't mean you'll automatically get it back. That's not the case when you pursue private money lending opportunities with real estate investors.
Once the financial terms are worked out, you will receive a consistent stream of revenue from the investors you lend money to. That's nice to know and gives you a lot of assurance with how you'll recoup your money over the years. You can also utilize this stable source of income for other investment opportunities that may have more risks involved.
Private money lending is a viable investment opportunity for those that have a lot of capital to lend out. You'll receive money from investors on a consistent basis and won't have to jump through a bunch of hoops looking at real estate yourself and possibly making bad financial decisions.
Contact a company like Precision Capital - Your Private Money Source to learn more.