We already know how valuable investing in real estate can be. But why not take it a step further and reinvest the money you’ve earned by using the same type of underlying security, private mortgages for real estate.
Private money investing includes directly lending your private money to individuals or professionally managed real estate funds while securing that loan with a mortgage against real estate. Private mortgage lending is an alternative to conventional real estate lending where private individuals or private funds take on the role as the lender and/or the bank. Traditional real estate lenders include banks, government agencies, insurance companies, and pension funds. More and more, however, private individuals or professionally managed funds are investing in real estate loans to meet the needs of certain types of real estate borrowers.