Real Estate Investing vs. Private Lending

Off Topic
21

[quote]DarkNinjaa wrote:

[quote]Ct. Rockula wrote:

You’ll get to be one of the first to see it once it’s done. It’s going to be hardcore.

Lol at your gym being a fitness center with a bowflex and some trx things.

[/quote]

Lol!

You are so wrong, Rock. My gym ain’t going to be no damn fitness centre.

I got HammerStrength machines, up to 200 pounds DBs, tyres, sledgehammers, prowlers, ropes in the plans. It’s going to be sweaty, teary and painful in there. There wont be no Sauna and no Steam room, though I would have loved to make it luxurious.

But I’m hardcore and my gym will be that way.

Once I’m done with it, you’re invited to come train, as well as all my friends( and haters) in here.

Ps: actually don’t think it’s gonna be free. A girl gotta make some money, ya know? That’s how bidness goes.

:)[/quote]

I like the notion that if the Gym has a sauna or pool or DB that go to 200lbs, means its a pussy gym LOL.

Waste of money buying 200lb DB’s, hell fucken anything over 150lb IMO is a waste of money.

22

It’s a personal question - there is no blatantly correct answer

As challer points out, there are different forms of private lenders

And so too with investors

I mean no offense, but the question itself sounds a bit off. Like a beginner in the beginner forums asking if they should go with bodybuilding or powerlifting.

Are you thinking more long term or short term?

I’m not an expert, but I’m goofy enough that I still might be able to give some incite - maybe

23

[quote]squating_bear wrote:
It’s a personal question - there is no blatantly correct answer

As challer points out, there are different forms of private lenders

And so too with investors

I mean no offense, but the question itself sounds a bit off. Like a beginner in the beginner forums asking if they should go with bodybuilding or powerlifting.

Are you thinking more long term or short term?

I’m not an expert, but I’m goofy enough that I still might be able to give some incite - maybe[/quote]
Just fishing for knowledge and experience that is all.

24

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Just wanted to know if anyone has experience with both purhasing real estate as an investment vs. being a private lender on real estate. Which does one prefer and why? Personally I think being the lender is much better but just wanted some feedback from members. Am I still being too vague?[/quote]

Z, I can’t say that I have first hand experience but to me it’s a no brainer. Right now is the time to be an investor, NOT a lender. As an investor you can get properties for a low price and at dirt cheap interest rates. You can get loans for under 3 percent which is a life time opportunity. In addition rents are kind of high right now. So, you can buy a house for a low price and pay low interest and charge a lot for rent. Sounds like win.

As a lender, you will only be making 2.75 percent. That’s pitiful.[/quote]
Not true. I’m getting a 12% return right now being a private lender. People find this hard to believe even when I show them proof.

I have been involved in flipping short sales(a total pain in the ass) and I can say for sure private lending is much easier. If I had 1MM I could retire.

25

[quote]Ct. Rockula wrote:

I will see what i can find…

And i think this thread is about France or some shit?[/quote]

No. It’s about Real Estate Investing or some shit.

26

[quote]optheta wrote:
I like the notion that if the Gym has a sauna or pool or DB that go to 200lbs, means its a pussy gym LOL.

Waste of money buying 200lb DB’s, hell fucken anything over 150lb IMO is a waste of money. [/quote]

A badass dumbbell belongs in a badass gym.

I’ll take 2 of those.

27

[quote]DarkNinjaa wrote:

[quote]Ct. Rockula wrote:

I will see what i can find…

And i think this thread is about France or some shit?[/quote]

No. It’s about Real Estate Investi
ng or some shit.
[/quote

Ahh. I just pay other people to take of that shit.

No worries.

28

[quote]Ct. Rockula wrote:

Ahh. I just pay other people to take of that shit.

No worries.[/quote]

I hate paying people to deal with my shit. Especially when they’re incompetent.

29

[quote]DarkNinjaa wrote:

[quote]Ct. Rockula wrote:

Ahh. I just pay other people to take of that shit.

No worries.[/quote]

I hate paying people to deal with my shit. Especially when they’re incompetent.
[/quote]

I keep people on hand to take care of my stuff for me. I only deal with people i trust and who have credentials ive researched for myslef and trust…they have the experience…its their profession.

I educate myself well enough to double check and have the ability to raise questions so i dont get fucked over…but at the end of the day id rather roll around on the floor with my baby than pull my hair out playing with numbers.

Plus i keep a person emplyed by using their services.

30

[quote]Zeppelin795 wrote:

Not true. I’m getting a 12% return right now being a private lender. People find this hard to believe even when I show them proof.

.[/quote]

I would sure like to hear the details.

31

[quote]challer1 wrote:

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Just wanted to know if anyone has experience with both purhasing real estate as an investment vs. being a private lender on real estate. Which does one prefer and why? Personally I think being the lender is much better but just wanted some feedback from members. Am I still being too vague?[/quote]

Z, I can’t say that I have first hand experience but to me it’s a no brainer. Right now is the time to be an investor, NOT a lender. As an investor you can get properties for a low price and at dirt cheap interest rates. You can get loans for under 3 percent which is a life time opportunity. In addition rents are kind of high right now. So, you can buy a house for a low price and pay low interest and charge a lot for rent. Sounds like win.

As a lender, you will only be making 2.75 percent. That’s pitiful.[/quote]

No offense but you don’t know what you’re talking about or misunderstand what the OP is talking about. As a hard money lender you can get 10-15% flat rate.

[/quote]

Again, I’m all ears for the details.

32

Why would anyone invest in real estate right now?

33

[quote]belligerent wrote:
Why would anyone invest in real estate right now?
[/quote]

Commercial is actually relatively hot right now in my area.

The big boys are out with guns blazing.

34

[quote]belligerent wrote:
Why would anyone invest in real estate right now?
[/quote]

As I said, prices are pretty low, interest rates are at a lifetime opportunity and rents are relatively high. If ever, no is the time.

Belligerent, are you still in the states or did you move to the Bahamas or where ever you were talking about a ways back?

35

[quote]Ct. Rockula wrote:

I keep people on hand to take care of my stuff for me. I only deal with people i trust and who have credentials ive researched for myslef and trust…they have the experience…its their profession.

I educate myself well enough to double check and have the ability to raise questions so i dont get fucked over…but at the end of the day id rather roll around on the floor with my baby than pull my hair out playing with numbers.

Plus i keep a person emplyed by using their services.[/quote]

I don’t trust anyone working for me. Hell, I don’t even trust my accountant. I hate numbers too but I had to take some accounting and finances courses just to be on the safe side, especially after selling my first business.

When it comes to money, the only person I trust is Ninjaa.

36

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Not true. I’m getting a 12% return right now being a private lender. People find this hard to believe even when I show them proof.

.[/quote]

I would sure like to hear the details.[/quote]
Send me a prvate message

37

[quote]Zeppelin795 wrote:

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Not true. I’m getting a 12% return right now being a private lender. People find this hard to believe even when I show them proof.

.[/quote]

I would sure like to hear the details.[/quote]
Send me a prvate message[/quote]

I’m starting to think I can’t send PM’s

38

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Not true. I’m getting a 12% return right now being a private lender. People find this hard to believe even when I show them proof.

.[/quote]

I would sure like to hear the details.[/quote]
Send me a prvate message[/quote]

I’m starting to think I can’t send PM’s[/quote]
Can you friend me?

39

[quote]on edge wrote:

[quote]challer1 wrote:

[quote]on edge wrote:

[quote]Zeppelin795 wrote:

Just wanted to know if anyone has experience with both purhasing real estate as an investment vs. being a private lender on real estate. Which does one prefer and why? Personally I think being the lender is much better but just wanted some feedback from members. Am I still being too vague?[/quote]

Z, I can’t say that I have first hand experience but to me it’s a no brainer. Right now is the time to be an investor, NOT a lender. As an investor you can get properties for a low price and at dirt cheap interest rates. You can get loans for under 3 percent which is a life time opportunity. In addition rents are kind of high right now. So, you can buy a house for a low price and pay low interest and charge a lot for rent. Sounds like win.

As a lender, you will only be making 2.75 percent. That’s pitiful.[/quote]

No offense but you don’t know what you’re talking about or misunderstand what the OP is talking about. As a hard money lender you can get 10-15% flat rate.

[/quote]

Again, I’m all ears for the details.[/quote]

Since the economy is in the shitter, contractors have a hard time finding work. As a result, many have taken to flipping houses as a primary form of income. They find houses which need major renovations, fix them up, then sell them at market rate.

While it looks good on paper, flippers frequently get bottle necked by all the paper work involved in buying, selling, applying for permits, and whatever. A prolific contractor will want to take on more projects and get more work, but is limited by waiting for properties to sell, an inability to secure another mortgage, etc.

Turning to a private lender allows contractors to get their hands in more projects so they have more than enough work. The only downside to this approach is it is naturally a high risk investment. If the contractor messes up his estimates on repairs or the house doesn’t fetch what they think it will or if there was some unforeseen major damage to the property, there won’t be any profit in the unit.

Of course, too, there is also fraud. Anytime you are handing over a bunch of money in a private venture there’s a chance you won’t see it again. It’s easier to do when you actually know the person who is going to be doing the repairs.