Great Way to Invest

Great Way to Invest - The Alternative and Most Effective - Private Mortgage Lending
By Stephanie Garcia

My search for the best channel to invest has come to an end. Let's talk about how your bank makes money today. They take in money on your Certificate of Deposit and then they will turn around and loan money out at a high rate of interest to private lenders who are buying houses. Think about how much interest you can earn if there is a way to cut-out that middle man.

Let's take a $25,000 loan example (from Private Lender Programs) at 10% simple interest you would earn $2,500 in interest over a 12 month period. Now take a bank certificate of deposit at 3.5% that would pay $875 in interest over 12 months. That is a difference of $1,625 by simply removing the middle person, the bank.

There are private firms like "My Investment Capital" who concentrates and primarily focuses on Private Lender Programs. They specialize in buying and selling houses. To buy houses, they prefer to borrow money from private individuals. They pay us for the use of our money; it's really a simple program.

Here's how it works: They look at a property that they want to buy (which they are expert at). They have studied and understood what their criteria's are on buying properties so that they can buy them on a low amount.

And then they borrow money to purchase a property from private individuals, us. As they go to a formal closing; we (on the other hand), gets a mortgage on the home with other important documents.

I am a private lender myself and I pretty much know my way in securing my money. The good thing about this program is how they provide three documents as security: 1.) There will be a mortgage on the house depending on how much it will be a first or second mortgage. 2.) They get hazard insurance on the home and then they will also 3.) Provide a promissory note before proceeding to a formal closing.

After which, they buy the property (Purchase house), fix it and look to put someone in the home that eventually wants to own that home (Tenants/Buyer). Now these customers pay the property or their rent which private firms uses to pay us in any term we choose: 1.) Interest Accruing, 2.) Quarterly, 3.) Monthly.

You will be amazed on how much you can earn by going direct and removing middle-men. I have! I found this information from http://www.myinvestmentcapital.com You can download their slide presentation so you can get a more detailed explanation and a clearer understanding about how this works.

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