stemming from productive meetings, networking efforts, and meticulous research and coaching. The outcome was the establishment of a consistent monthly income stream. However, we still have funds that are not paid back for over a year now as promised. And many investors lost their life savings by doing the private lending . The reasons are either their lender got bankrupt or they are highly leveraged by using all OPM (other peoples money) and not leaving enough equity on the deal to allow them better manage the mortgage payments to pay their investors back. Unlike a secured loan that comes with collateral, a promissory note is often unsecured. If the issuer defaults, the payee may face difficulty recovering their money. The payee may need to pursue legal action, which can be expensive and time-consuming. For new investors to the realm of real estate investment, I strongly advise conducting thorough research and due diligence. The risk level can be significantly high, particularly since you may lack collateral as a safeguard. It's crucial to understand the potential risks involved and to proceed with caution, ensuring that you are well-prepared and informed before making any investment decisions. If you are close to retirement or you already retired. Promises Note should not be using as your income producing tool as the risk is extremely high. Unless you don’t need the funds for income, and prepared for dela or no payment. And willing to take the time and money at court. Diversification is another way to control your risk. Meaning have each lender no more than $50,000. each time.
Here are the 3 major types of structures.
1, Mortgage Backed private lenders
It typically have your name registered under the mortgage as
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