Flip and Danny break down private money lending as a cash flow strategy. You need $50,000 minimum with no accreditation required, loans are secured by real estate, and typical returns run 6-12% with principal back in roughly 4 months instead of the standard 12-month term.
Questions this video answers
$50,000
6–12% (6%–10% typical; up to 12% on very large deals)
12 months
"High Yield Cash Flow Through Private Money Lending and the Six Top Benefits"
freedomcapitalinvestments.com/lending
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies, and welcome to our podcast, which is.
Called Freedom through Passive Income.
That's right. And welcome to another episode. And today's episode is called called High Yield Cash Flow Through Private Money Lending and the Six Top Benefits. That's a long title.
That is a long title. I wrote it.
Yeah.
Are you ready for me to go through the six top management? Please. All right, so the very first one is ease of entry. You don't need any experience to be a private money lender. I mean, it helps. Everybody that I talk to, they love going through the very first one so that they can say they. They've done it and they understand the experience, but you don't have to have the experience. Just jump on the phone with me, one of my team members. They're gonna walk you through it. It's super, super, super easy. You also don't have to be accredited. That is huge. I can't tell you how many times people don't think they can invest in real estate or any aspect of real estate because they think that they have to be accredited. And so just as a reminder, to be accredited, you have to be making 200 to $300,000, depending on if you're single or a couple, and expected to make that, you know, again for the following year. And you had to have made it for the last two years, or you have to have a million dollars in net worth, excluding your principal residence. And because of that definition, some people are like, I can't do it. I don't care. You do not have to be accredited. Can I shout it from the rooftop? So ease of entry is the biggest thing, and $50,000 is the minimum. So most people have $50,000 in their retirement account, and they can start as a private money lender. And it's very easy to start with 50. And then how many times do they.
Come to us and go, oh, you know what? I found another $200,000 right here.
Yeah. Oh, and here's another 400,000 DOL bank account. So a lot of people will just start with $50,000 for their first experience so they can learn the process and build that trust with us. So, number one, I spent that much time on it because it's the most important piece of the puzzle to getting started. And most of our investors started with private money lending, and then they expanded and started doing so many more things. So it's really great. Number two is it's secured by real estate, meaning you're the bank, Wells Fargo, bank of America, whatever. You know, when you sign, buy a house, you have a note and mortgage, right? They can foreclose on you if you stop making the payments. You can do the exact same thing to us. Well, you have to. I hope to God not. And nobody has ever had to foreclose on us. We've always paid our lenders. Even if we lost money, they never lost a freaking dime. And that's another reason why so many people invest with us. Because I say that all the time. Because it's so incredibly important to me, our reputation, our integrity, that we do exactly what we say we're going to do. And it's why we do volume real estate, right? If we're going to do 10 deals and we lose money on two, you know, when our private lender doesn't even know we lost money on it, we lost money. They will not lose money. So I think that's super important. Number three is multiple resources. So you can use retirement accounts, you can use your cash, you can pull money out of the stock market. There's many ways that you can actually use funds to be a private money lender. Number four is liquidity. So we always do everything on a 12 month term. Within 12 months you're going to have your money back plus interest. But if we bought a single family residence that was a vacant, our average timeline is four fast months that you're in a deal and out of a deal with your principal back plus your interest. So that's really, really incredible. Now some people are like, don't get me out of this in four months. Give me a deal that's occupied or give me a large rehab. I won't actually take this all 12 months. But I'm just saying there's some liquidity components to private money lending. So that's a top benefit. Also high returns. So for us, we're giving anywhere from 6 to 10% on our. For the returns on your private money lending with us. They' are exceptions that we make on large, large deals like in the millions of dollars where we're giving 12% returns. So 6 to 12% returns. That's really how. Who's getting 6 to 12% returns in your bank account? You are not.
Okay, I think it's like.006%.
If you're listening to this as a podcast, you did not see him raise his hand in the air. For those of you watching the video, you got that joke. All right, so number five was high returns. Yeah, we give you a great return on your Money. And then number six is hassle free. It is super easy. Like I said, jump on the phone with us or one of our team members, they're going to walk you through the process. The amount that you're involved in this is very minimal from the reviewing the packet. Just to say, yes, I'd like to fund this deal to wiring the money to the title company and signing a release at the very end for your payoff statement and the release of mortgage. That's literally the main components. There's four things for you to do and you can tell our transaction coordinator, Tiffany that you want to a bunch of updates and pictures or zero updates because you don't want to hear from us. So it's a really cool thing to do and it's just very popular. And why a lot of investors work with us because they get to come to us through private money lending.
Right. And one of the big things too is don't trust everyone. Now we know that you're on this podcast, you're, you're watching us, you're listening to us. Don't trust us. I mean ask the serious questions, ask the hard questions. Whenever you're talking to an investor and you're getting ready to do private money lending, ask them those questions. And have they ever lost money in a deal? Have they ever lost a deal? Have they ever not paid their investors back? That's right. So ask the tough questions. Now one of the things that you did is actually you created a panel and then we had with our cpa, with our attorney, with one of our private lenders. And not only did you have the panel asking everybody questions and everything, you had their name, you had their email address and you had their phone number.
Yes, I did.
And so that way if you, if you watch the video that Danny created, you know, you're gonna see everybody's name, their email, their phone number, you can contact them at any time. So again, we tell you everything. We're very transparent, we're very open. So if you ever have any questions for us, please ask. But we also give you our resources, our references, I should say.
That's right.
So you know, but don't trust everyone just because, hey, we do everything right, you know, make sure you ask the right questions.
Yeah. And the reason we did that is because you have bought so many houses that where an investor bought it and it was mid rehab and they walked away.
Yeah.
And I'm like, did they pay their private lender? Like what just happened? You didn't finish.
Yeah.
So they ran out of money. So what happened there, that's. That's very scary. And I get on the phone all the time with people and they've lost money. So don't trust us. Don't trust anybody that you work with. Make sure they've got the experience to make sure that they've got the knowledge. Working with somebody who's doing volume. They're mitigating their own losses already. So there's so many things that you want to be asking. Ask the hard questions. I flip. Nailed it.
So, yeah, so again, if you're out driving, don't do this now. But again, if you're watching this, make sure you head on over to our Facebook group. It's a private group, but it's right up here@facebook.com groups, freedom through passive income.
Stop making me laugh.
And right down here, make sure that you hit the love button, the like button, the comments. Let us tell us what you think. Yeah, that's what it is. Yeah, there we go. Tell us what you think to ask us questions, whatever it may be, but let us know how we're doing. And also, if you're not on Facebook, let know us. Right down here is our website, freedomcapitalinvestments.com yes. Oh, great. There you are. We've been looking all over for you. We forgot to put in the video when we recorded this. Where to go to get the private money lending report. So go to freedomcapitalinvestments.com lending to make sure you get that free report. And inside that report is a link to the expert panel video that we just talked about. So make sure you head on over there now. FreedomCapitalInvestments.com lending see ya. And like we end all of our other episodes. Invest smart, live happy. Bye, everybody.
Bye.
Nothing on the show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss. Great. There you are. We've been meaning to find you.
