As those who have been associated with Jason Hartman for a while know, the man has a knack for figuring out unique and, more importantly, conservative approaches to generating the maximum return on your investment dollar. That’s why we’re here to talk about private hard money lending opportunities available within Jason’s Platinum Properties Investor Network. While you may have heard the term bandied about in the media before, there’s a good chance you haven’t had the opportunity to exercise the strategy exactly the way we’re going to describe today.
As always, you can rest assured that Jason doesn’t suggest his network clients undertake any financial investment he isn’t already engaged in (profitably) himself, so you can erase that doubt from your mind. The key to the recent success of private hard money lending is the continued reluctance of traditional lenders, such as banks and mortgage companies, to turn loose of the purse strings. That’s where private lenders come in with money to loan on a short-term basis, sometimes as short as four months.
From a borrower’s perspective, the whole deal is a streamlined process that falls outside the normal channels of long-term mortgages requiring a credit history evaluation, including income and debt evaluation. Short-term loans of the private variety are usually made based on the underlying value of the property itself.
Can you make money doing this? Keep in mind there are very few guarantees in life, and you won’t get one here, but Jason and some of his clients are earning 12.25% interest on money they have made available. The key here is that you’re not loaning money to any random stranger who wanders in off the street. Borrowers are actually local market specialists which Jason already has vetted for purposes of recommending properties to the PPIN network. These vendors locate properties in need of updating, which is where your loan money comes in. After the work is done, these properties go into the pool from which we draw our recommendations – which explains the short-term nature of the loan.
If you’re interested in learning more about private hard money lending, please call our office at 949-200-8009. One of our real estate specialists would love to talk to you.