Learn About Private Money For Real Estate Deals
Why Private Money
Private Money is one of the best secrets of investing in Real Estate.
At its very core, all Private Money means is that you’re using personal money from other people in the form of an investment instead of the traditional lending vehicles like banks.
There are tons of benefits to using Private Money VS. Traditional lending.
Here’s a brief summary that outlines all the benefits.
Why Real Estate
While Andrew Carnegie famously said that “90% of millionaires made it through real estate investment” I would venture to say that 99.9% of billionaires have Real Estate in their wealth portfolio.
Real Estate Investment is a necessity. From a traditional sense of basic human needs, everyone needs shelter. With real estate you can own, rent, lease, build, store, etc. There are many options.
Right now is one of the best opportunities to snap up real estate investment both because of the reduced costs and because of real estate’s potential upside. Despite potential difficulties in securing borrowed funding due to current economic conditions, you are probably not going to come across another opportunity like this for a long time to come if you let it pass you by.
First, the price for real estate investment on the open market has fallen since the recession that started in 2007 and which we have yet to recover from. As with every other thing sold on the open market, the movement in the price of Real Estate Investment is determined by changes in the interaction of demand for real estate and the supply of real estate. Falling demand for real estate prior to and during the recession combined with a glut of Real Estate Investment entering the open market from foreclosures combined to hammer down real estate prices. Since the economic recovery has yet to finish and the housing market remains sluggish, the prices of real estate remain at historic depths at the moment.
However, because the current economic climate is more sluggish than usual, it seems reasonable to conclude that the price of real estate investment will rise again at some time in the future. Based on this assumption, if you buy real estate right now, you are likely to be able to gain in the future from the increase in the value of your real estate on the open market.
Furthermore, the cost of borrowing money is unusually low at the moment due to the recession. Since most of us pay for the purchase of real estate investment using a combination of personal resources and borrowed money, this is a significant factor in the real cost of buying real estate. This is particularly true if you are able to lock in current interest rates for the near future. Although the current economy might make it difficult for you to secure loans from the usual sources, the low prices of real estate on the open market also makes it easy for you to pay a large enough down payment to sway the minds of potential lenders.