4.3 • 602 Ratings
🗓️ 10 December 2018
⏱️ 35 minutes
🧾️ Download transcript
#218: You can achieve 10.5% Cash-On-Cash Returns with debt investing.
With Private Money Lending, you rent your money (not your property) to a borrower.
Their real estate is your collateral.
This way, you have greater passivity and stability than most equity real estate investing.
You participate on the DEBT side rather than the EQUITY side of real estate investing.
You have a fixed, predetermined rate of return.
You are in first lien position. This means that if your borrower defaults, you can get paid back first.
This is debt syndication. That simply means that a number of lenders make a loan on one construction project.
Act and learn more: GetRichEducation.com/Lending
Most lending durations are 12-36 months. Typically, that’s how long you receive monthly cash flow payments, with your principal returned at the end.
Today’s guest, John Larson, Managing Partner at American Real Estate Investments, tells us about debt syndication in the Dallas-Fort Worth market.
Medical and office space are often developed, with 25-35 lenders on $2M-$4M properties.
If something goes wrong with a project, we discuss how you’re repaid.
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Want more wealth?
1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my best-selling paperback: getbook.at/7moneymyths
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Listen to this week’s show and learn:
03:35 Before making a loan on someone else’s real estate - here's what you must know.
05:24 First lien position, debt syndication.
08:12 Personal story of when I met John Larson.
10:25 Motivation for debt rather than equity investing.
12:48 Astounding strength of Dallas-Fort Worth, TX economy.
14:11 If something goes wrong, how does the lender (you) get repaid?
16:57 Who is debt investing ideal for? Cash, IRAs, 401(k)s.
21:23 How the developer identifies the right opportunity.
24:14 What if something goes wrong?
25:04 “Say I invest $100K, when and how am I paid?”
28:15 John is a new author. I wrote the book’s foreword.
31:39 See if Private Money Lending is right for you at GetRichEducation.com/Lending.
Resources mentioned:
Private Money Lending: GetRichEducation.com/Lending
John Larson’s Book: Passive Income Guide
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ProducersWealth.com
Turnkey RE: NoradaRealEstate.com
QRP: TotalControlFinancial.com
Find Properties: GREturnkey.com
GRE Book: GetRichEducation.com/Book
Click on a timestamp to play from that location
0:00.0 | Welcome to Get Rich Education. I'm your host Keith Weinhold. Most people understand that when you rent |
0:06.5 | your real estate to somebody else, that can be profitable for you. But what if instead you rent |
0:11.7 | your money to someone else and their real estate is your collateral today on Get Rich Education? |
0:21.2 | MC Lobster is the host of the Cashflow Ninja podcast and president of producers' wealth. |
0:26.2 | He is on a mission to help you achieve financial independence and freedom as soon as possible. |
0:32.2 | He achieves this by integrating the infinite banking concept with real estate investments to |
0:36.6 | increase their returns |
0:37.7 | and recapture cash flow that you are not even aware of that you're losing. |
0:42.7 | MC shares the number one strategy of investors in his holistic wealth creation course |
0:47.1 | at your own banking system.com. |
0:51.4 | Would you like to know the easiest way to create wealth and passive income with real estate? |
0:55.9 | This is Marco Santorelli with Norata Real Estate Investments. |
0:59.5 | Now you can access the best deals without the stress or hassle of having to find, |
1:03.6 | renovate, or manage those properties. |
1:05.7 | We save you time by providing you with passive income investment properties in some of the best |
1:09.7 | U.S. markets. |
1:11.0 | Learn more by downloading your free copy of the ultimate guide to passive real estate investing. |
1:16.4 | There's no obligation and nothing to buy. |
1:18.6 | Simply visit passive real estateguide.com and get your free copy today. |
1:23.4 | That's passive real estate guide.com. |
1:27.0 | Get rich education is brought to you by Ridge Lending Group producers wealth, |
1:30.9 | LaRata Real Estate, and Total Control Financial. |
... |
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