When it comes to passive investing and different sources of income, we might have something useful to say.

As many of you know, we are laser-focused on investing in apartment syndications/commercial residential Real Estate Investing/ Group investing. While waiting for the right deal, we often have the need to be “liquid” (to have funds readily available to upfront the expenses of putting a property under contract and preparing the offering for other passive investors. Also, as you all know, money in the bank is money not working for us. We found one way to put our money to work short term is through Private Money Loans. This creates a win-win situation that can be very profitable.

We share this strategy with our friend Quest Trust Company. Click on the recording to learn more about it. Below are some resources.

• Real Estate Investments – one of the strategies to make some money is using the real estate investment vehicle. This strategy gives asset stability, tax advantages, leverage debt, allows for diversification, cash flow in the present, appreciation in the future, and can be done passively or actively.
• Private Money Lending/Loans – it’s the ability to fund those potentially in need of money. It’s a way to preserve capital and a passive way to make money. To know more about Private Money Lending/Loans, read https://corporatefinanceinstitute.com/resources/knowledge/finance/private-money-loan/

• House Flippers – someone who buys a property and sells it for a profit. These people usually use the BRRR strategy, which means buy, renovate, rent, refinance and repeat. More explanation of house flipping in https://www.investopedia.com/articles/investing/012617/how-get-loan-flip-house.asp

• Bridge loans – is the ability to help somebody close their deal by funding the deal. Read more about bridge loans at https://www.investopedia.com/terms/b/bridgeloan.asp

• Partnership loans – is the ability to fund the capital and get compensated as a risk capital which is the upfront cost of setting up syndication or partnership.

• Short-term Rental startups – is the ability to fund somebody that is looking for money until they can actually start cash flowing their business.

• When funding money to somebody, it is really recommended to be prepared with a promissory note assisted by a lawyer and get in touch with the title company for the person who needs the funding.

• Determine your terms and be strategic with your loan length and interest rates. When you’re crunching your numbers, you have to determine what’s the value you are going to get.

• Private money lending/loan needs and the ability to fund will only present themselves if you talk about what you do. In general, first-time loans come about through a connection.

• Repeat customers come back because of how they are treated and doing what you say (both sides of the deal).

• Private money lending/loans put your capital to work at arm’s length and create win-win situations.