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A real-estate lending example: lend $50,000 on a $100,000 house at 6% interest. You're covered 50% if the borrower defaults, and you keep the interest. The key is active oversight so your money actually works for you.
A real-estate lending example: lend $50,000 on a $100,000 house at 6% interest. You're covered 50% if the borrower defaults, and you keep the interest. The key is active oversight so your money actually works for you.
If you had a hundred thousand dollar house and you could give someone 50 grand and get 6% on your money, there's not much risk in that deal. The house is worth 100. You're only giving 50 cents on the dollar. If they default, which you're probably praying at night, they do, that's a 100% return on your money. They default, you take it back, sell it, discount it, whatever you need to do, get your revenue money back. It's not passive, it's a little bit active. But listen, you got to make money. Your money's got to make you money. You have to make money, your money has to make you money.
