If a person wants to buy real estate whether it be a house, apartment building, land, or for business purposes, what are their private lending real estate investment options? Private lending options means that funding for the property is not coming from a commercial bank, savings and loan or credit union.
Here are some examples of private lending real estate investment options:
- Seller financing – There are a variety of ways to structure seller financing including lease-options, wraps, seller carry or subject-to deals
- Real Estate Syndication or Joint Ventures – Real Estate Syndication is simply a partnership to purchase Real Estate. These partnerships can be anything from small joint ventures between 2 investors, all the way up to SEC regulated securities among dozens or hundreds of investors.
- Private Investors – Private money from an investor can be leveraged as Debt Investing or Equity Investing depending on the level of risk the investor is willing to take.
- Hedge Funds – Hedge funds generally are designed to leverage financial sectors other than real estate, but some money is available.
- Private Equity Funds – Private equity funds are much more interested in equity investments in real estate and can be a good source of private money funding.
- Using your IRA To Purchase Investment Property – You can make an investment in a Private Investment Offering, such as the ones we have available from time to time, using IRA or other retirement account funds. Since you are technically lending the money to yourself, it can be considered a “private money option.” The investment stays inside your retirement account, so no early withdrawal penalty or tax penalty is created. This is done through a Self Directed IRA or other Self Directed retirement account, but it is best done for investment property since there are rules about “benefiting” from your own retirement accounts.
We work with many different private lending options and are very aggressive about securing the correct funding for our real estate investors, allowing them to leverage their capital in the most effective way while securing the highest returns.
If you would like to find out more about your private lending real estate options, give us a call today 720-306-8017.