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Have Spare Cash? Be a Hard Money Investor!

Becoming a hard money investor today could be your ticket to living the life you’ve always wanted. Most people immediately think of flipping houses, rehabbing homes, or owning rental properties whenever they think of investing in real estate.

By: Nicky J. Reed
Category: Real Estate
Posted: Mar 04, 2010
Updated: Mar 04, 2010
Views: 235


Becoming a hard money investor today could be your ticket to living the life you’ve always wanted. Most people immediately think of flipping houses, rehabbing homes, or owning rental properties whenever they think of investing in real estate. What many don’t realize is that there is also a very profitable career in real estate that not many people know of: that of being a hard money investor. Also known as hard money lenders, hard money investors are organizations or companies that lend money to entrepreneurs and other investors. However, the term can also refer to private individuals who provide the same services, thus the term “private money lenders.” In common parlance, all the terms are used interchangeably.

Earn More For Less

Private money investors have distinct advantages over their fellow real estate investors. For starters, hard money investors can earn more for less. What this means is that lenders of private money don’t have to do too much to earn huge profits. Private money lenders only need to do one thing, and that is to provide financing to hard money borrowers. Compare that to the tasks of rehabbers, wholesalers, and landlords, and you’d certainly notice the big difference in roles and responsibilities between the “regular” real estate investors and hard money lenders.

Extra, Residual Income

Another benefit of being a hard money investor is that you can have extra income every month. Again, without doing anything. Once you’ve loaned money to a hard money borrower, all you need to do is just sit back and watch your bank account grow every month. You can even keep your day job or tend your own business while at the same time work as a hard money lender.

And to top it off, you can earn huge profits providing loans to real estate investors. Across the country, hard money investors usually charge between 14% and 20% interest rate on every loan they provide. These loans are usually payable between six and 12 months. These rates definitely beat letting your money rot in banks.

While being a private money lender is a promising career, it does have one big prerequisite: you got to have money. Of course it’s not rocket science, but you got to have money in order to lend money to someone else. That’s why it is advisable that you only enter this business only if you’re looking to use your spare or investment money.

Being a hard money investor provides lots of opportunities to make money in real estate. Learn how you can become a private money lender and whether you’re qualified to become one by visiting www.REIWired.com, the largest real estate investing network on the planet.

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