Free Lender Report
If you are a private lender, don't lend out another nickel of your hard earned money without first reading our Free Report,
"7 Guaranteed Ways To Lose Your Money Through Private Lending"
Private Lenders
Do Any Of The Following Describe You:
- You've been solicited for money by individuals that have found you on the public records?
- You're an experienced private lender and you want some additional information to make sure you're closing your deals correctly?
- You're thinking of becoming a private lender because of the high returns but you're not sure of all the risks?
If So, Read On...
As a private lender, you face an enormous challenge -- you need to obtain the highest rate of return on your money while maximizing the safety of that money. This is not easy when wading in the shark-filled waters of real estate. But with years of experience underwriting, documenting and closing private/hard money loans, I can help you meet that challenge by:
-- Acting as your trusted adviser and answering any questions you may have about private lending;
-- Assisting you with structuring clean and successful private lending deals; and
-- Exclusively representing your interests (and not those of the borrower) in your private lending deals
-- Acting as your trusted adviser and answering any questions you may have about private lending;
-- Assisting you with structuring clean and successful private lending deals; and
-- Exclusively representing your interests (and not those of the borrower) in your private lending deals
A Lesson From The Golf Course
A young man was golfing with an older man who had great success in life. The young man wanted to know how to replicate the older man's success, so he decided to ask. Here was the conversation:
"What do I have to do to be successful like you?" asked the younger man.
"You must make good decisions to be successful," the older man replied.
"Okay, but how do I learn to make good decisions?"
"You must get experience to be able to make good decisions," the older man offered.
"Ahhh, I see," said the young man, "then would you tell me how to get experience?"
"No problem," said the older man. "Make bad decisions."
Unfortunately, many people jump into the world of private lending lured by the high yields they offer, only to suffer through one or more unfortunate experiences, including some that result in financial loss. Having been on the front lines of private lending for years, I know the following to be true:
First, there are many good private lending opportunities, but there are just as many, if not more, bad opportunities -- either because the borrower or the property is inappropriate for a private loan.
Second, if you don't properly underwrite or document your private loans, it's not a matter of if but, rather, when you will get into a bad situation. And,
Third, once you're involved in a bad situation, it will be very difficult to get out and, if you do, it will likely be without all the money you originally put into the deal.
Here are a few ways you could unknowingly place yourself in a bad situation:
And this is just a few of the many ways your money could be at risk.
"What do I have to do to be successful like you?" asked the younger man.
"You must make good decisions to be successful," the older man replied.
"Okay, but how do I learn to make good decisions?"
"You must get experience to be able to make good decisions," the older man offered.
"Ahhh, I see," said the young man, "then would you tell me how to get experience?"
"No problem," said the older man. "Make bad decisions."
Unfortunately, many people jump into the world of private lending lured by the high yields they offer, only to suffer through one or more unfortunate experiences, including some that result in financial loss. Having been on the front lines of private lending for years, I know the following to be true:
First, there are many good private lending opportunities, but there are just as many, if not more, bad opportunities -- either because the borrower or the property is inappropriate for a private loan.
Second, if you don't properly underwrite or document your private loans, it's not a matter of if but, rather, when you will get into a bad situation. And,
Third, once you're involved in a bad situation, it will be very difficult to get out and, if you do, it will likely be without all the money you originally put into the deal.
Here are a few ways you could unknowingly place yourself in a bad situation:
- The borrower misrepresents or doesn't understand the value of the property and you inadvertently lend too much against the property;
- The borrower misrepresents or doesn't understand the amount of work the property needs and then runs out of cash and the deal stalls or goes into default;
- The borrower gets the wrong insurance policy and a loss occurs that isn't covered;
- The borrower violates zoning laws or local building codes during the rehab of the property and the property loses significant value;
- The borrower commits fraud with the specific intent of stealing your money.
And this is just a few of the many ways your money could be at risk.
Is Private Lending For Me?
Perhaps you're thinking you want to avoid private lending at all costs. In truth, private lending is not for everyone. I have, on occasion, counseled clients to stay away from private lending for various reasons. But I have many other clients that, once properly educated as to the risks and rewards, find private lending to be a great investment vehicle. After all, private loans have many benefits that other investments often don't have:
Private loans are like any other investment. You must first understand all the risks and rewards of private lending and then make a decision as to whether it’s the correct investment vehicle for you. If it is, and you properly minimize your risk, there's no reason you can't enjoy years and years of successful investing and great returns!
So how do you minimize risk and increase your chances of success?
- They produce high yields (ROI can exceed 10%).
- They are secured by liens against real property and personal guarantees.
- They offer predictable returns because the rate or return doesn't fluctuate as with other types of investments.
- The loan amounts are usually low compared to the property value, so there's often a big equity cushion in the property.
- The returns can be tax-free if structured properly.
Private loans are like any other investment. You must first understand all the risks and rewards of private lending and then make a decision as to whether it’s the correct investment vehicle for you. If it is, and you properly minimize your risk, there's no reason you can't enjoy years and years of successful investing and great returns!
So how do you minimize risk and increase your chances of success?
Knowledge + Experience = Success
I have been personally involved in millions of dollars of private loan transactions, and I have spent years lending my own money as well as representing the interests of other private lenders. In that time, I've learned that most problems or losses related to private loans occur as a result of ignorance -- and by ignorance I don't mean stupidity. I only mean that the lender was not properly educated as to the risks associated with private lending and, therefore, could not make proper lending decisions.
So it only makes sense that if you want to enjoy all the benefits of private lending while minimizing your risk you need to:
1) get as much education about private lending as possible; and
2) surround yourself with professionals experienced in private lending.
It is for this exact reason that I dedicate much of my professional time to the needs of private lenders. It is also why I developed the Free Private Lender Report offered here. Although my Report cannot replace actual lending experience, it can act as a knowledge base gleaned from years of experience in real estate and private lending.
So it only makes sense that if you want to enjoy all the benefits of private lending while minimizing your risk you need to:
1) get as much education about private lending as possible; and
2) surround yourself with professionals experienced in private lending.
It is for this exact reason that I dedicate much of my professional time to the needs of private lenders. It is also why I developed the Free Private Lender Report offered here. Although my Report cannot replace actual lending experience, it can act as a knowledge base gleaned from years of experience in real estate and private lending.
What You Will Learn From My Report
In my Lender Report, I identify over 30 questions you MUST be able to comfortably answer BEFORE funding any private loans. Here are a few:
I also identify in my Report what I feel are the biggest ways you could lose all your money through private lending, including the following:
---> Title Insurance Issues
---> Hazard Insurance Issues
---> Legality of Loan
---> Legality of Documents
---> Legality of Interest Rate
---> Identification of Fraud
---> Issues surrounding Municipal Liens
---> Capacity Issues
---> Construction Issues
My hope is that as you read the Report you answer a lot of the questions you may have about private lending. But I also hope you will have many more questions after you read the Report. Why?
Because you should!
Each lender has his or her own types of loans, and each loan has its own unique characteristics. Thus, as you gain knowledge, you should realize that your loans often present more issues than you previously thought, and that should provoke more questions, some of which you may need professional help with.
- Has the person writing my loan documents been chosen by me or the borrower? Are they fully representing my interests? Does that person have a lot of experience with private loans?
- How do I know if I’m lending too much?
- Will I be able to go after the borrower’s personal and marital assets if the borrower defaults?
- Am I holding enough money back in escrow to protect the construction process?
- Have I properly underwritten the 4 “C’s” of each and every deal?
- What constitutes “default”?
- Have I properly protected myself against fraud?
- Should I include an arbitration clause in the legal documents?
- Do I need to worry about any lender licensing requirements?
- Does the title insurance policy protect me in the event of a title claim?
- Are my loan terms legal?
- What is the foreclosure process and how long will it take? What do I need to do with the property in the meantime?
- Can I use an Escrow Deed?
I also identify in my Report what I feel are the biggest ways you could lose all your money through private lending, including the following:
---> Title Insurance Issues
---> Hazard Insurance Issues
---> Legality of Loan
---> Legality of Documents
---> Legality of Interest Rate
---> Identification of Fraud
---> Issues surrounding Municipal Liens
---> Capacity Issues
---> Construction Issues
My hope is that as you read the Report you answer a lot of the questions you may have about private lending. But I also hope you will have many more questions after you read the Report. Why?
Because you should!
Each lender has his or her own types of loans, and each loan has its own unique characteristics. Thus, as you gain knowledge, you should realize that your loans often present more issues than you previously thought, and that should provoke more questions, some of which you may need professional help with.
Need Help?
If, after you read the Report, you still have questions or you feel you need professional help with underwriting or documenting your loans, contact me. I have extensive experience in title, real estate and private hard money lending and can help you take the necessary steps to minimize your risk and avoid mistakes.
Here are just a few of the benefits to using my services:
AND HERE'S THE BEST PART: Most times the borrower pays for my services. That means you get my experience and skills without having to pay for it!
Thank you for visiting my site and hope to have the opportunity to help you with your private lending. The link to download the Report and my contact information is below.
Happy investing!
Jeff Shiller, Attorney
Here are just a few of the benefits to using my services:
- I can custom tailor a loan document set to your exact needs on each and every loan so you don't need to rely on boilerplate documents;
- I can help you set up ways to participate as a partial owner of someone else's private note or even share your private notes with other private lenders;
- I can review the title report, hazard insurance and/or borrower entity documents for irregularities and to make certain you are getting the correct protections;
- I lend my own money for hard money deals, so I understand the risk associated with this type of lending;
- I have over 20 years experience with real estate, so you can learn from the mistakes I've seen;
AND HERE'S THE BEST PART: Most times the borrower pays for my services. That means you get my experience and skills without having to pay for it!
Thank you for visiting my site and hope to have the opportunity to help you with your private lending. The link to download the Report and my contact information is below.
Happy investing!
Jeff Shiller, Attorney