PRIVATE LENDING BRUCE E. DINGER
RISKS VS. REWARDS
Sitting in Bank
Real Estate Private Lending
$100,000 x 1% interest
$100,000 x 10% interest
12 Month Term = $1,000 ROI
12 Month Term = $10,000 ROI
*Backed by Real Estate Private Lending
PML are making a 10x greater return on their money!
Stock Market
Real Estate Private Lending
Completely Unsecured
Secured by Deed of Trust or Mortgage Deed
Completely Uninsured
Collateral is Fully Insured
Invest at Market Price
Collateralized Below Market Value
Returns Are Unknown
Returns Are Fixed and Agreed Upon Term
Tangible Asset
HOW PRIVATE MONEY HELPS YOU AS A RESIDENTIAL REDEVELOPER (RR)
Private money lenders bring speed and
efficiency to the RR’s transactions, and
their leverage is far greater when they
purchase using private cash funds.
Many of the homes RR purchase are in
need of a quick sale within 10-14 days.
A traditional bank requires 30-45 days
to close a loan. Many traditional home
sales fall out of contract because of financing issues.
Using quick cash as leverage allows the RR to
negotiate a much lower purchase price and reduce risk.
Being able to offer a fast closing with private funds motivates sellers to take the RR’s offer over the
competition, and entices them to take a much lower price than they would from a conventional buyer. Also,
lending guidelines are also continually changing and are requiring applications, approvals, junk fees and strict