How Private Lending Deal Work

Lenders examine deals, analyze the properties and qualify the buyers. Lenders will charge fees plus interest to the borrowers. Some lenders look to private investors who can provide the capital in exchange for interest. Depending on the type of the loan, investors can be paid interest in a lump sum when their principle is returned at the end of the loan term, or they can receive regular monthly payments.

Hard money loans can be safe, reliable investments when properly vetted and executed. These loans have been offered by mortgage brokerages and even some banks for years, but now it is easier than ever for individuals to “be the bank” and enjoy the benefits of helping qualified borrowers. The key is finding a private lender who will carefully screen borrowers and properties.

Investment Rates of Return

Depending on how much you have to invest, for how long, and whether or not you are an accredited investor, the first/senior position notes we have access to are paying a minimum of 8% to a maximum in the double digits.

The return on hard money loans are agreed on between the lender and the borrower, and rates of return can vary tremendously based on many factors, such as the experience and credit of the borrower, and even the anticipated profitability of the project.

Contact us today for more information! 

Worcester Financial, LLC

1220 Washington Street, Suite 200

Kansas City, MO 64105

(816) 291-4146 O

(816) 522-1613 C

taryn@wc-kc.com