As we said in our previous entry, the housing market in Southern California is booming. This fantastic news is ideal for potential investors wanting to establish a steady and reliable stream of income on a monthly basis while minimizing risk.
In this issue, we’ll talk about how you can easily establish your stream of income through hard money loans in Los Angeles.
Do I have to Be Wealthy to Be a Hard Money Lender?
There was atime when private individualized lending was mainly for millionaires. Things have changed recently, however. Increasingly, people up and down the socio-economic ladder are joining the ranks of hard money lenders.
Many of these investors are attracted to becoming hard money lenders because of the win-win payoff it provides. While buyers otherwise left out of the housing market are able to get much-needed capital for their home, the investor earns an attractive return.
How Do I Become a Hard Money Lender in Los Angeles?
One way is to venture out on your own and conduct your independent research about the real estate investment opportunities in your neighborhood. However, perhaps the safest bet is to collaborate with existing hard moneylenders who have their finger on the pulse of the best deals available in the real estate market, and can help you with the placement of your investment.
A deed of trust and a promissory note on the property is collateral to secure your investment.
Through trust deed investment, you’ll receive monthly interest payments just as you would with a money market fund – however, the yields from trust deed investments are typically higher.
Are There Risks with Trust Deed Investing?
As with just about any investment, there are risks. With trust deed investing, the main risks are devaluation of the property, the borrower not being able to make payments on time and foreclosure.
That’s why it is vital that you minimize your risks, which can be done by collaborating with expert hard money lenders in Los Angeles who can mitigate or reduce your level of vulnerability by making an appropriate loan-to-value ratio.
For Answers to All of Your Hard Money Questions in Los Angeles, call the PB Financial Group.
If you’re looking for an investment that can provide you with a higher yield than what you would find in money markets, hard money realty loans could be the right ticket for your financial security.
Here at the PB Financial Group, we offer protection for your investment and thoroughly investigate real estate investment opportunities.