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Simple breakdown of how lending is generally done using private funds to purchase or wholesale properties. The examples are broken down by the following:
Long Term private money loans are usually offered on a timeline (hold) of 12 months or more and typically come with lower returns and lower risk.
Short Term private money loans are usually offered on a hold of 3-12 months and typically come with a little higher return and higher risk.
Transactional Lenders like myself, fund investors for a timeline typically less than 30 days. This comes with the highest risk, but can also yield some of the highest returns.
In all scenarios above, risk can be mitigated using the proper systems and processes to vet the deals you're lending on and even better when borrowing, systems that can benefit from my lending on your deals!
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