REI WEALTH MONTHLY Issue 31 - Page 6

PRIVATE LENDING BRUCE E. DINGER HAT IS PRIVATE LENDING? A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. As REI,when we have isolated a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Through that process, the lender can yield extremely high interest rates – 4 or 5 times the rates you can get on bank CD’s and other traditional investment plans.