Private Money411 Magazine - The Source for Real Estate Finance | Page 17

GCA Equity Partners, pg. 15 to properties that have strong appreciation potential, such as so-called “fixand-flip” deals or new construction. However, when this model applies, it can increase the return potential by adding an equity-based component to the standard interest-only model. Private Lending Funds While much of the private lending activity is single or multiple investors supporting a single borrower, there is another model based on an investment fund. In this approach, a fund manager organizes a collection of investments from multiple investors, and then uses the pool of money in the fund to make loans to borrowers. Currently, there are a variety of real estate mortgage funds available, with a range of investment strategies including the same ones described previously for individual investors. Investing in funds, or mortgage pools, has both advantages and disadvantages relative to individual private lending. One advantage is that capital efficiency is typically higher, since it’s easier for a fund manager to match their larger pool of capital to particular deals and thus keep the funds more fully invested. Another is diversification, since funds from each investor are distributed across multiple loans. Some investors may find a disadvantage, in that they like to review their own loans and make their own decisions about whether or not to lend on a particular deal. With fund investing, those decisions are made by the fund manager rather than the individual. Of course, for other investors, having a professional manager evaluate the deal is actually seen as an advantage. Private lending can be a great way to invest in real estate without the hassle of owning property, dealing with maintenance issues, or managing tenants. It focuses on the financial aspects of real estate investing by allowing individual investors (by themselves or as part of a fund) to essentially become the bank and to finance real estate transactions using the security of the real estate as collateral. The Complete Solution for Real Estate Investors TM So you love real estate... but you hate management? Passive Income 12.25% First Trust Deeds We have access to very unique "insider" private lending opportunities. You’ve never seen hard money lending like this before. If you have $100,000 or more to invest and you want conservative, diversified, quick-turn, non-pooled investments that repay in about four to six months contact us for details. Our private lending program is simple and proven. The simplicity of our private lending program is unmatched. Visit or call 480-788-7823 today. Le in le d it th p in s in th a d b F a w B h th le in c to m Listen to The Creating Wealth Show, Jason's Highly Acclaimed Investor Podcast: CW 274 Fiscal Hangover & Global Change with Keith Fitz-Gerald To learn more about private lending, contact GCA Equity Partners, LLC at 408-3691571, x101 or email: info@ CW 273 The Decline of the EuroZone with Alasdair MacLeod CW 269 SWOT Analysis of Income Property, Facebook IPO & Case Study See terms of service at: Podcast PAGE 17 • 2015 Private Money411 PAGE A16 • 2014