Private Lending is the lifeblood of the flipping business

Many times people have great ideas. Private Lending is one of those great ideas. However this idea doesn't come to just a few people who invest in real estate. Nope it comes to just about everyone who invests. The idea of private lending has created millionaires across the world.

Using someone else's money has always been a concept that people "sold" to other people. In other words the idea that someone else will put up the money for your idea has been a profit maker for years. Venture Capital companies are the vultures of the business. However they have access to the money. In some ways VC's aren't all that bad. For the most part steer clear.

Finding people who have money to invest in your idea is not the easiest of tasks. They have to really believe they will make a profit and be confident in the ability to liquidate in case of failure. People don't want to lose there money. So some forms of protection must be built into any agreement you make. In the end it makes the transaction smoother if you begin with the money guys concerns up front.

So the real question is how do you find these people? There are plenty of people out there willing to invest in your idea. Especially if your idea is my idea. My idea was flipping properties. My idea is a pretty easy sell. In fact lets see if this helps you sell your idea (hoping its a real estate idea).

My idea is that private investors invest in our company. We purchase properties at foreclosure auction. Then we fix the properties and broker them on the open market. A complete flip. The investors make 50% of the net (depends on if profit sharing or not). We also offer a profit sharing model for those who don't have the funds to take down a property by themselves. This is a weighted fund based on your percentage of the total project costs.

In the end the private investors tend to make approximately 13% consistently. Considering they recover there investment in under 90 days (87 current average) and its secured by real estate, its a pretty good deal. So that is my idea and its what I currently do. The market here in Sacramento is full of buyers and so it keeps on working. Private Lending