PRIVATE LENDING BRUCE E. DINGER
Essentially, private money lending is a lender’s opportunity to become the bank, reaping the profits just like a
bank would. It’s a great way to generate cash flow and produce a predictable income stream - while at the
same time, provide excellent security and safety for your principle investment. You can do what the banks have
been doing for years…make a profitable return on investments backed by real estate. There is no other
investment vehicle like it.
Through private money lending, lender’s have the
opportunity to become the bank
HOW THE PROCESS WORKS
The process is simple. The Residential Redeveloper (RR) finds an extremely undervalued property to
purchase - and once lender gives the green light, the RR borrows the funds to purchase and renovate the
property. At closing, the lender receives a mortgage on the home along with other important documents. Next
stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the
size of the project), the RR will list and sell the property. When it’s time for closing, the lender receives his
principle plus 10% interest payment. It’s just that simple! The goal is to keep turning that money for the lender
and keep them making substantial profits so they keep coming back – building a long term mutually beneficial
relationship.
OVERVIEW OF THE PRIVATE LENDING PROCESS