What Is Private Lending?
There are many ways to invest. You can invest in stocks, bonds, mutual funds, ETF’s, real estate, gold, silver, and many others! As you know, I’m not a fan of the stock market at all. Really, I believe any retail financial product is a bad idea. Why? Because it’s made up. It is what I refer to as an arbitrary. At the end of the day it is not necessity based, it is confidence based. Today I want to highlight private lending.
What is private lending?
Private lending is when a buyer wants to purchase an asset from a seller and does not have the capital to cover the entire investment. This buyer is now faced with either giving up and withdrawing from the investment OR securing capital from someone else. Most investors will secure capital from someone else. This is simply borrowing money.
An investor can borrow from an institution which typically has a higher barrier to entry, higher regulation, and less willingness to lend for large amounts. The other option is for an investor to borrow from an individual or business. The latter is called private lending and is one of my favorite ways to invest! Why?
1. Passive income. We’ve all heard the phrase passive income touted over and over. The problem is that almost none of it is actually passive. Think about it. If you get real estate, you will still be a landlord and there is nothing passive about that. If you do online sales, you still need to build content, market, advertise, and handle accounting. There is nothing passive about that. However, lending is really one of the only true forms of passive income. If you lend me money and I pay you monthly with interest, all you must do is receive the check. That’s it. You’re not involved in any other aspect than collecting a check from me. Why do you think banks are in the lending business?
2. Security. Because a lender is the bank in the transaction, the lender gets to set the terms of each investment. A smart lender will always look for some form of collateral. This provides security so that if you lend me money and I don’t pay you, you can take my thing. Often times, the “thing”, is real estate, land, payment contracts, etc. So a worst case scenario could actually be better than the borrower paying on time. I’d love to foreclose on a borrower and instantly go from a debt position on an asset to actually owning the asset.
3. Become a Bank. There are 4 business models that are glorious and should be modeled. 1. Banks, 2. Governments, 3. Religious organizations, 4. Schools. Control = income and you will realize that these 4 models have massive control over the influence of a population. We are just going to talk about banks. By having a pool of capital, you have the power to leverage it. I combine high cash value, dividend paying Whole Life Insurance with Private Lending to literally become a bank. It is a wealth creation formula on steroids. You want the ability to create money, leverage it by lending it to various places all at once, earning interest from many locations, and having security to seize assets if things don’t go your way. This is what banks do and it is what I teach my clients to do.
If you are ready to take your wealth to the next level, I can do this for you. We will create a strategy, set targets, skill up, and execute. This will look like learning to increase income, saving 40% into your new bank, and multiplying the money in your bank with passive income opportunities like private lending. If you’d like to learn how to do this Click Here.
If you’re a follower and have not read my book “The Blueprint to Financial Freedom” yet, that is the place to start. This book covers the specifics for each level in the various chapters, and you can grab the book for free as my gift.
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The Blueprint to Financial Freedom by Jerry Fetta
To Purpose, Wealth & Freedom,
Jerry Fetta
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)
