We all liked George Bailey and his Building and Loan in "It's a Wonderful Life." The old Mr. Potter was portrayed as the villain, yet he had all the money. George and Mr. Potter were in the right business, even though their hearts were in different places. They both loaned money on real estate.
When there was a run on the banks, everyone ran like sheep to empty their accounts.
Mr. Potter offered to buy for just pennies on the dollar. As in the movie, the rich know when to buy. Right now, here in America, the mortgage industry has caused a Wall Street panic. As in most turbulent times, the people who remain cool and calm and analyze the situation instead of running with the 'chicken little' crowd come
out on top.
The fact is that any time is a good time for private mortgage lending. While credit might get tighter at times, the banks don't stop loaning
money. Why?
*Because loaning money is profitable.
*The demand is always there - people need homes.
So why should you invest your money as a private lender?
*Credit is tight.
*Cash is king.
*A real estate foreclosure investment firm is more than willing to pay you what you deserve.
Mortgage lending is so profitable the richest of the rich put their money in mortgage trust funds.
My question is this: Why let the banks make all the real profit?
Think about this:
*Banks have huge overhead to support. They have buildings and numerous employees.
*Banks give away free gifts and services.
*Banks are growing: In the last few years, banks have been building bigger and better buildings, and they usually spare no expense in architecture and furnishings.
*Banks will count your money, track your money, safeguard your money, provide a drive-through service, send you statements about your money, cash your checks and even make sure your bills are paid, BUT ALL THESE SERVICES MAKE NO PROFIT WHATSOEVER!
Why do they do it?
Just to get their hands on your cash so they can make more LOANS!
Banks bend over backward to offer free services just to act as an arbitrageur. Banks make so much profit loaning money, they can afford to provide all of these services, build huge buildings, and give things away!
So what if there was a way you could be like a bank without hiring anyone or building a drive-through on the side of your house? A way you could make money just like the bank, only without all the overhead?
Good news - there is! Private mortgage lending is when you loan your money and secure your funds just like the bank. You won't need to give away toasters or free checkbook covers, or keep track
of ten thousand checking accounts. All you'll need to do is count your profits.
There is one big difference: You could make more money than the bank! Without the overhead of a bank you will be making all the profit. How much can you make as a private mortgage lender?
How much do you have?
