FAR 103

Expected Air Date: 01/04/17

Listen Here

Opening:

We are talking private lending today. I’m going to define and describe it, then show you how Flipping America uses it.

Passive Investing Strategies.

Announcements:

• NEW NEW! www.flippingamericanetwork.com is LIVE
• FlipStarter Tampa is January 20. FlipStarter Dallas is Feb 10. www.flipstarterevent.com
• Call in to our comments line! 404-369-1018, extension 1. Leave your message.  
• Questions@flippingamericaradio.com Tell us where you’re from!
• Like us on Facebook. www.facebook.com/flippingamericamedia
• Check in with us every Tuesday for “Tuesdays at Two”
• Follow us on Twitter @FlippingAmerica
• IF WE READ YOUR QUESTION ON THE AIR, WE WILL SEND YOU A TICKET TO OUR NEXT FLIPSTARTER EVENT. THAT’S A $97 VALUE!

News: 

• http://www.businessinsider.com/manhattan-real-estate-sales-slow-as-tax-reform-looms-2018-1
• https://www.inman.com/2017/12/28/3-real-estate-tech-trends-to-keep-an-eye-on-in-2018/
• http://flatheadbeacon.com/2018/01/03/outlook-2018-record-year-2017-real-estate-looks-hold-momentum/
• http://time.com/money/5075666/kitchen-design-trends-cost/
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/02/11-biggest-real-estate-mistakes-and-what-to-learn-from-them/#412e67f72463
• https://www.denverpost.com/2018/01/03/denver-real-estate-slowdown/
• https://www.forbes.com/sites/samanthasharf/2018/01/03/housing-outlook-2018-six-predictions-from-the-experts/#55ce69004066

Topics:

• Private Lending
  • Why loan money?
    • Passive Strategy
      • Different taxation
      • Different effort level
    • Good returns
      • 8-10% on loans
      • More in JV Situations
        • Risk of no profit
        • Risk of loss
    • Safe
      • Proper Loan to value ratio at all times. 
      • Check ups on work (especially in the first few deals with investor)
  • Gap Funding
    • What it is
    • Advantages
    • Disadvantages
    • What is reasonable to expect. 
  • Equity Partnerships
    • What is it
    • Advantages
    • Disadvantages
    • What is a reasonable return
  • Funding Rentals
    • Be the bank
      • Minimized Risk
      • Sell the paper
    • Long-term income
      • Steady
      • Safe
  • Using a self-directed IRA
    • Can invest in any or all of the above.
    • Can even invest in a property for yourself, BUT
      • Can’t use the property
      • Can’t work on it yourself 
  • In general, longer term loans have lower returns, and somewhat less risk.
  • Short term loans have higher to potentially much higher returns and somewhat more risk. 
  • First position is always the safest. Second position is riskier.