Expected Air Date: 01/06/17
Opening:
Passive Investing Strategies.
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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)
- Passive Strategy
- Ways to loan money
- Crowdfunding – Fundrise – reports rates of 8-12%
- Long term rentals – usually around 8%
- Flips – 10% is more common
- Equity Partnership
- Gap Funding – riskiest of all, but dynamite returns.
- 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
- Be the bank
- 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.
- Why loan money?