PRIVATE LENDING BRUCE E. DINGER
HOW THE LENDER BENEFITS
FROM PRIVATE LENDING
The private money lender (PML) can
benefit greatly from investing their
capital. A real estate mortgage/ deed of
trust
provides
them
with
security
instruments they would not get with
other investments. The PML also has
added layers of protection because of
Done correctly,
equity is built in the purchase of the home,
how the RR buys, and because the
educated RR are buying 30-40% below a retail buyer – that
PML has recourse available in case the
creates instant equity at purchase. Also, in a typical transaction,
RR were to default on the loan.
RRs cut out the middleman cost, such as: commissions, mortgage
broker fees, loan fees; and attorney costs are also lower because
RR currently pay 4-5 times what a
there is less work for them to review.
typical bank CD is paying. Rates may
much,
An experienced and educated RR is able to offer buyers a fully
depending on the purchase price and
renovated home at or