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The Other Way to Invest in Real Estate

By February 15, 2018 Real Estate Investing

real estate investing

Why you should consider investing your money in real estate?  Backed and secured by the real estate itself.  Most investors don’t realize they can set up a Self-Directed IRA and invest their money in real estate.  If owning rentals is not your thing, you can still participate by becoming a Private Lender.  As a Private Lender, you loan money secured by real estate instead of investing in stocks, mutual funds, or ETFs which have no hard assets securing them.  With the banking changes over the last several years, investors are now limited on the number of investment loans they can get from banks.  This is why Private Lenders are sought after and why investors are willing to pay higher interest rates for these loans.  Private Lending is a great way to see much higher returns on your investments and significant tax savings without the roller coaster ride of the stock market.

Things to look for when considering Private Lending.  Do your due diligence to make sure the investor has experience and the deal makes sense.  The investor must be willing to give you the following documents that provide you with the protection you need.

1.       A First Deed of Trust/Mortgage – this is the same legal document that the bank records on your home, if you are a homeowner, and it puts you at the front of the line.

2.       A Lender’s Title Insurance Policy with your name on it.  This protects you from any unknown liens on the property.

3.       A Promissory Note – this specifies the terms of the loan (interest rate, duration, payments, etc…).

4.       Last, but not least, is Hazard insurance.  You want to make sure there is insurance on the property with your name on the policy.

If the investor is unwilling to provide you with any of these documents, I would look for another investor to work with.

Investing in Real Estate is a good opportunity for Investors who wants secured return on their Investments. As the Real Estate Market is really hot right now and the demand for homes has gone high, becoming a part of the Real Estate Process is a good Investment, you can see your money grow in a few months.


If you need more information about Real Estate Investing, Call me (208) 254-2002!

Robert O’Dell
Key2 Homes, LLC

Key 2 Homes LLC - Idaho