Frequently Asked Questions

What is private lending?
Why people want to be private lenders?
Who can be a private lender?
What funds can I use for lending?
Can I use my IRA or 401(k) to lend from?
How can it benefit both an investor and a private lender?
Why would an investor be willing to pay high returns for the money?
How a private lender is protected?
Is there any type of insurance on the house?
Who handles the paperwork?
How long is the term of the investment?
Is private lending a really safe investment?
How to get started?
What is simple interest?
What is compounding interest?

What is private lending?

This is a form of investment when a person, private lender, lends money to a private real estate investor. You, as a private lender in turn will be getting fixed returns that never change, are much higher (e.g. 11 to 13%) than you'd get in CDs, money markets, commodities, stocks and most mutual funds, and will be secured by real estate. An investor and a private lender partnering up together is the best way for both of them to get what they really want -- to make more money.

Why people want to be private lenders?

Most people let others control their money and make decisions for them. This means that these people are not in control of how their money is invested or what it earns and they do not know if they have enough to retire on or have enough for the kids' college, etc. Becoming a private lender would enable you to make decisions about your money and will let you control your money and your future.

Who can be a private lender?

A private lender can be anyone reading this message. This would be a person who would lend money to private investors (like us) safely secured by fixed returns against real estate as a passive investment.

What funds can I use for lending?

Any funds you may have in your saving or retirement accounts, CDs, mutual funds, stocks, etc, that you are not happy with the return you are getting.

Can I use my IRA or 401(k) to lend from?

Yes, you can. In fact, this is what most private lenders do. You can do this as long as you are in control of that 401(k) or IRA; it must be self-directed. If you are not happy with what your investments in IRA or 401(k), you can roll that over into self directed IRA. This is not a taxable distribution, usually they cost about $55, and it is very simple to do. For more information contact your investment advisor or you may also get information from Equity Trust Company by visiting its website at www.trustetc.com

How can it benefit both an investor and a private lender?

We, real estate investors, need capital to buy properties, do small rehabs and be able to turn around and sell quickly and make a profit. Private lenders make it possible for us to act quickly and allow growing our business. For private lenders such as yourself this is a completely hands-off approach to earn high fixed returns (e.g. 11 to 13%) safely secured by real estate that allows to watch their investments grow and know exactly where they are headed rather than worrying about stock charts or having to trust their investment broker. Private lending can make a big difference in people's lives weather they are a lender or a real estate investor. Most of the private lenders can double their money much quicker by doing this way than by following conventional wisdom.

Why would an investor be willing to pay high returns for the money?

To us, the real estate investors, the availability of the short-term capital is very important and sometimes it is more important than the cost. For example, we might need to borrow small amount of anywhere between $10k and $60k (on rear occasion it might be more). We need to be able to move quickly to be able to buy houses and at the same time help sellers to make a difference in their lives. Banks just take too long to approve a loan. Also, this process would limit our ability to buy more houses by being able to put only a certain amount of loans in our names or by requiring huge down payments that can hinder our ability to grow the business the way that we needed to grow it. It is really a win-win situation. If you are using a credit card, you are also willing to pay much higher returns for the availability of short-term cash. So this is a win-win for everybody.

How a private lender is protected?

There are several ways a private lender is protected. First, we look at how much money we need to borrow from your and how much equity is in the property and make sure that there is higher equity versus what we as an investors borrow from you as a private lender. Also, there is a promissory note that that states the exact terms of the loan: the amount that is going to be lent, how long the money is going to be out there, and the exact fixed return you will be getting. More importantly, there is also a mortgage or trust deed which puts the property as the collateral for your loan and will act as the lien against the property. This means that we cannot sell this property until we pay you off. So there is no risk here and a private investor will be protected in all possible ways.

Is there any type of insurance on the house?

Yes, there is a lender's title insurance policy, and it will name you as the insured. So when we, the investors, decide to sell the property and if there are any title problems, this will ensure that you are protected. There will also be a fire or hazard insurance policy; if the property burns down, you will be protected as well. You will not need to spend a penny, as we, the investors, will pay for these at closing. Protection of your investments is very important to you as is to us.

Who handles the paperwork?

All the paperwork will always be handled either by a real estate attorney, a title company or an escrow agent. As a private lender you will always send the funds to them, a title company, attorney or escrow agent, and never to us, the borrower. They will prepare all the documents and will forward them to you. You will get a signed promissory note, a copy of the lender's title insurance policy and a fire or hazard insurance policy. After an attorney or title company or escrow agent records the mortgage or trust deed against the property, and it will get forwarded back to you after it is recorded at the county courthouse. You will have one loan secured against one property. So this is really a hands-off way to earn high fixed returns, and a true legal way to protect both parties.

How long is the term of the investment?

For you as a private lender the term of your investment depends on your financial goals. If you are trying to get cash flow and in the shortest amount of time, we would typically set those loans up as 12 months loans. If you are like most private lenders and want the highest return possible, that is, you are more concerned with growth than today's cash flow needs, those investments are typically out there anywhere between 36 and 60 months. To match these needs we can use owner financing or lease options. Whether you are trying to create cash flow now or the highest return possible we know how to match your investment needs with the specific property.

Is private lending a really safe investment?

Yes. These loans are safely secured by real estate with fixed high returns (e.g. 11 to 13%) that never change. There are no fees or any commissions and there are no early withdraw penalties. You are in control of the money, so we will work with you on terms, so they benefit both of us.

How to get started?

If you are ready to make more money through your investments, all you need to do is to sign-up and let us know what you are looking for so we could to better meet your needs. We will contact you talk or set up an appointment to answer the questions you have and if we want to work together - agree on terms. Then we will find a property that matches your investment needs. Your job then will be to arrange the funds to be sent to a real estate attorney, a title company or an escrow agent. And finally, we will set up the closing at the attorney and title company or escrow agent's office, where you do not even have to go, just sit back and watch your investment grow by getting high fixed returns that never change that are safely secure by real estate.

What is simple interest?

Simple interest is the price paid by a borrower for the use of a lender's money. In other words, interest is the amount paid to "rent" money for a period of time. The original amount lent is called the principal, and the percentage of the principal which must be paid annually as interest is called the interest rate. Interest rates are crucial indicators in financial markets.

What is compounding interest?

Compounding interest, also called anatocism, is interest which is regularly added to the debt (compounded). Interest is then calculated not only over the principal (as it is done in the case of simple interest), but also over the interest that has been added to the debt before - in other words, it is calculated over the total amount owed. With compound interest, the frequency of compounding influences the total amount of interest paid over the life of the loan.


	Start Earning Higher Returns Today
	Home \| Benefits \| Security \| How this Works \| FAQ \| Calculate Your Returns \| FREE CD \| Get Started \| Contact Us



	Frequently Asked Questions What is private lending? Why people want to be private lenders? Who can be a private lender? What funds can I use for lending? Can I use my IRA or 401(k) to lend from? How can it benefit both an investor and a private lender? Why would an investor be willing to pay high returns for the money? How a private lender is protected? Is there any type of insurance on the house? Who handles the paperwork? How long is the term of the investment? Is private lending a really safe investment? How to get started? What is simple interest? What is compounding interest? What is private lending? This is a form of investment when a person, private lender, lends money to a private real estate investor. You, as a private lender in turn will be getting fixed returns that never change, are much higher (e.g. 11 to 13%) than you'd get in CDs, money markets, commodities, stocks and most mutual funds, and will be secured by real estate. An investor and a private lender partnering up together is the best way for both of them to get what they really want -- to make more money. Why people want to be private lenders? Most people let others control their money and make decisions for them. This means that these people are not in control of how their money is invested or what it earns and they do not know if they have enough to retire on or have enough for the kids' college, etc. Becoming a private lender would enable you to make decisions about your money and will let you control your money and your future. Who can be a private lender? A private lender can be anyone reading this message. This would be a person who would lend money to private investors (like us) safely secured by fixed returns against real estate as a passive investment. What funds can I use for lending? Any funds you may have in your saving or retirement accounts, CDs, mutual funds, stocks, etc, that you are not happy with the return you are getting. Can I use my IRA or 401(k) to lend from? Yes, you can. In fact, this is what most private lenders do. You can do this as long as you are in control of that 401(k) or IRA; it must be self-directed. If you are not happy with what your investments in IRA or 401(k), you can roll that over into self directed IRA. This is not a taxable distribution, usually they cost about $55, and it is very simple to do. For more information contact your investment advisor or you may also get information from Equity Trust Company by visiting its website at www.trustetc.com How can it benefit both an investor and a private lender? We, real estate investors, need capital to buy properties, do small rehabs and be able to turn around and sell quickly and make a profit. Private lenders make it possible for us to act quickly and allow growing our business. For private lenders such as yourself this is a completely hands-off approach to earn high fixed returns (e.g. 11 to 13%) safely secured by real estate that allows to watch their investments grow and know exactly where they are headed rather than worrying about stock charts or having to trust their investment broker. Private lending can make a big difference in people's lives weather they are a lender or a real estate investor. Most of the private lenders can double their money much quicker by doing this way than by following conventional wisdom. Why would an investor be willing to pay high returns for the money? To us, the real estate investors, the availability of the short-term capital is very important and sometimes it is more important than the cost. For example, we might need to borrow small amount of anywhere between $10k and $60k (on rear occasion it might be more). We need to be able to move quickly to be able to buy houses and at the same time help sellers to make a difference in their lives. Banks just take too long to approve a loan. Also, this process would limit our ability to buy more houses by being able to put only a certain amount of loans in our names or by requiring huge down payments that can hinder our ability to grow the business the way that we needed to grow it. It is really a win-win situation. If you are using a credit card, you are also willing to pay much higher returns for the availability of short-term cash. So this is a win-win for everybody. How a private lender is protected? There are several ways a private lender is protected. First, we look at how much money we need to borrow from your and how much equity is in the property and make sure that there is higher equity versus what we as an investors borrow from you as a private lender. Also, there is a promissory note that that states the exact terms of the loan: the amount that is going to be lent, how long the money is going to be out there, and the exact fixed return you will be getting. More importantly, there is also a mortgage or trust deed which puts the property as the collateral for your loan and will act as the lien against the property. This means that we cannot sell this property until we pay you off. So there is no risk here and a private investor will be protected in all possible ways. Is there any type of insurance on the house? Yes, there is a lender's title insurance policy, and it will name you as the insured. So when we, the investors, decide to sell the property and if there are any title problems, this will ensure that you are protected. There will also be a fire or hazard insurance policy; if the property burns down, you will be protected as well. You will not need to spend a penny, as we, the investors, will pay for these at closing. Protection of your investments is very important to you as is to us. Who handles the paperwork? All the paperwork will always be handled either by a real estate attorney, a title company or an escrow agent. As a private lender you will always send the funds to them, a title company, attorney or escrow agent, and never to us, the borrower. They will prepare all the documents and will forward them to you. You will get a signed promissory note, a copy of the lender's title insurance policy and a fire or hazard insurance policy. After an attorney or title company or escrow agent records the mortgage or trust deed against the property, and it will get forwarded back to you after it is recorded at the county courthouse. You will have one loan secured against one property. So this is really a hands-off way to earn high fixed returns, and a true legal way to protect both parties. How long is the term of the investment? For you as a private lender the term of your investment depends on your financial goals. If you are trying to get cash flow and in the shortest amount of time, we would typically set those loans up as 12 months loans. If you are like most private lenders and want the highest return possible, that is, you are more concerned with growth than today's cash flow needs, those investments are typically out there anywhere between 36 and 60 months. To match these needs we can use owner financing or lease options. Whether you are trying to create cash flow now or the highest return possible we know how to match your investment needs with the specific property. Is private lending a really safe investment? Yes. These loans are safely secured by real estate with fixed high returns (e.g. 11 to 13%) that never change. There are no fees or any commissions and there are no early withdraw penalties. You are in control of the money, so we will work with you on terms, so they benefit both of us. How to get started? If you are ready to make more money through your investments, all you need to do is to sign-up and let us know what you are looking for so we could to better meet your needs. We will contact you talk or set up an appointment to answer the questions you have and if we want to work together - agree on terms. Then we will find a property that matches your investment needs. Your job then will be to arrange the funds to be sent to a real estate attorney, a title company or an escrow agent. And finally, we will set up the closing at the attorney and title company or escrow agent's office, where you do not even have to go, just sit back and watch your investment grow by getting high fixed returns that never change that are safely secure by real estate. What is simple interest? Simple interest is the price paid by a borrower for the use of a lender's money. In other words, interest is the amount paid to "rent" money for a period of time. The original amount lent is called the principal, and the percentage of the principal which must be paid annually as interest is called the interest rate. Interest rates are crucial indicators in financial markets. What is compounding interest? Compounding interest, also called anatocism, is interest which is regularly added to the debt (compounded). Interest is then calculated not only over the principal (as it is done in the case of simple interest), but also over the interest that has been added to the debt before - in other words, it is calculated over the total amount owed. With compound interest, the frequency of compounding influences the total amount of interest paid over the life of the loan.