Private Mortgage Lending: Real Estate Passive Income

Learn how you can earn secure high interest rates, become the bank, and build wealth tax-free by private money lending.
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524 students enrolled
Instructed by Dan Schwartz Business / Real Estate
$50
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  • Lectures 24
  • Contents Video: 33 mins
    Other: 5 mins
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 10/2013 English

Course Description

Did you know you can become the bank and lend money for real estate purchases?

Did you know you can earn interest completely backed by real property as collateral?

Did you know you can invest in real estate out of your IRA and earn passive income completely TAX-FREE?

  • Learn all this and more in this comprehensive guide outlining the basics of private mortgages.
  • Learn from an investor whose company has borrowed close to $1,000,000 in private funds for successful real estate acquisitions!
  • See an entire real life private money deal from start to finish.

We will discuss WHY private lending works and how real estate investors can afford to pay higher rates of interest than what you may be used to earning.

Cash is king in the new real estate market, and private lenders are certainly cashing in on a unique opportunity to make highly secure, profitable investments. Take control of your life savings instead of leaving it to the whim of the stock market.

See you on the inside!

What are the requirements?

  • Basic financial knowledge

What am I going to get from this course?

  • Learn the benefits of private lending
  • Walk through a REAL-LIFE private money deal
  • The anatomy of a private money loan
  • The paperwork you should be familiar with
  • Which real estate investors to work with
  • Learn what happens if you are not paid back
  • Discover the type of funds you can use for private lending
  • Best practices for lending out of your retirement accounts

What is the target audience?

  • If you're sick of inconsistent, low rates of return on your hard earned money, you should familiarize yourself with private mortgage investing
  • If you don't want to put the fate of your savings at the whim of the stock market

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Welcome
01:20

Welcome to your crash course in private lending.

Feel free to email us anytime at

info@baltimorewealthbuilders.com

or you may reach us at 443-848-8028

Please read the disclaimer section at the bottom of the course curriculum.

03:23

Learn why the economy has given us a golden ticket to get involved with private mortgages for real estate.

03:13

We truly walk the talk! Our investing business in Baltimore has been around since 2010 and we've done over 100 transactions of all different shapes and sizes, including close to $1,000,000 in successful private money deals. We currently own rental properties throughout the city and in the middle of renovating several other for retail.

Email: info@baltimorewealthbuilders.com

LinkedIn: www.linkedin.com/in/danschwartzy

Office: 443-848-8028

Section 2: Private Mortgage Lending 101
01:15

What makes a private money loan different from a regular loan? Let's talk basics first before going into the details.

01:05

Find out if you fit into any of these categories.

02:40

How are investors able to pay private lenders higher rates of returns? It's all about the real estate...

01:53

This is a quick summary of a private money deal from start to finish.

It's much simpler than you think. Don't forget to ask questions!

00:47

1. Promissory Note

2. Deed of trust (mortgage)

3. Insurance policy

Section 3: Example Private Money Loan
02:54

To summarize:

We purchased and renovated the property using a short term private lender's funds. After renovating the property, we put a tenant in place, then applied to refinance the house with a traditional bank for a longer term loan.

When refinancing, typically bank will lend you up to 60% of the value of the property. This bank gave us a little less, but it was enough to pay off our initial private mortgage lender + their interest.

The best investors acquire properties at steep enough discounts to ensure the security of their investors. If the numbers don't make sense, we won't do the deal.

For more information about other deals, shoot me an email to info@baltimorewealthbuilders.com and I'd be happy to explain further. It's important to have a full understanding of this process so you know your funds are secure.

4 pages

Page 1: Buy-Side HUD-1 Settlement Sheet. You will see the purchase price and amount of private money loan circled on this document.

Page 2: Deed of Trust (Mortgage). You will see the loan amount circled. This document is recorded in the official state land records.

Page 3: Appraisal: At the bottom of the page, you will see the amount the property appraised for to give you an idea of the amount of equity our lender had backing the loan.

Page 4: Refinance HUD-1 Settlement Sheet. This is how we paid our private lender back. You will see the total payoff amount circled, which included their principle + interest.

*Lender name blacked out for privacy reasons*

00:29

This simple diagram will give you a visual representation of how a private loan will outperform traditional forms of investing.

Section 4: Funding
01:25

Most people don't know that you can lend money out of your IRA or 401K. Traditional IRA custodians don't want you to know this because it does not benefit them (or the mutual fund companies). Learn about different funding sources on this lecture.

02:19

Self-Directed ROTH IRAs are the most powerful retirement investment vehicle for those that want to be in control of their money. Learn how to use them and how simple they are to create in this video.

Be sure to check out www.TrustETC.com and www.TheEntrustGroup.com for more information about how to start your self-directed Roth IRA or roll over your traditional IRA into one.

Section 5: Frequently Asked Questions
03:14

If the investor defaults, private lenders DO have options. If the investor buys cheap enough, they can end up taking ownership of a high-equity house that they can resell for a profit. Be sure to choose the investors you work with by speaking with their other lenders and making sure they have a solid track record.

00:29

How much do private lenders lend? We discuss this briefly here. It all comes down to the real estate investor's particular business model.

00:39

We don't recommend it, but there are ways to get your money back early. It is not ideal.

Who Handles the Details/Paperwork?
00:30
00:44

There are several ways to structure how exactly you will get paid your interest and principal. Learn how here.

00:42

Short term vs. long term? You have options.

00:19

Please contact us at info@baltimorewealthbuilders.com or reach our office at 443-848-8028.

Section 6: Benefits of Private Lending
01:49

The benefits of private mortgage lending. This is just the tip of the iceberg!

01:41

Please read the disclaimers on the next page!

Section 7: Disclaimers
Disclaimer
Article
Consult Legal Advice
Article

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Instructor Biography

Dan Schwartz, DrumPreneur

As a graduate of the University of Maryland with a degree in Marketing, I decided not to apply to a single traditional job out of school. I took the road less traveled, and started a 6 figure business flipping real estate and being a landlord. I also tour with a high energy funk/dance band. I also manage my real estate business, dabble in internet marketing, and self-publish niche eBooks.

Join me in my pursuit of making "Rich Dad" proud, building wealth by creating or buying valuable assets, whether it's through self-publishing, rental real estate, or internet marketing.

Cheers,

-Dan

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