Real Estate Investing is More Than a Profit/Loss Statement

In the hectic day-to-day world of real estate investing, sometimes we forget there are real live people on the other end of each deal closed. Maybe it’s time to take a moment and enumerate a few reasons this is a great business to be in above and beyond the bottom line of profit or loss. For this purpose, let’s look at real estate investing from the perspective of investors’ who loan private money.

Grant the dream of home ownership – In case you didn’t notice, there was a little thing that happened a few years back called the foreclosure crisis, which is still running full steam ahead. One of the side effects of the nastiness is that it became a lot harder to qualify for traditional loans. These days, it’s not unusual for a bank to require a full 25% down payment before they’ll help a borrower secure a mortgage. That’s a big chunk of money, but private lenders can structure deals in a way that helps a family perhaps just starting out and with little credit reach the dream of home ownership. Bottom line: as an investor, that makes you feel good.

Foreclosure relief – There’s no doubt that the primary fallout from the foreclosure mess is people losing their homes. As a private investor, you have the opportunity to help a family stay in their homes, stop the foreclosure dead in its tracks, and put a little money in your pocket at the same time. Just another example of a win-win situation occurring through the miracle of private real estate money lending. Maybe it seems a little crass to classify loaning money as a miracle, but it probably feels exactly like that to a family facing eviction.

The really cool thing about private lending is it allows an investor to take advantage of the fact that he or she is not nearly as constrained by red tape and government restrictions as a traditional bank or mortgage company. We tip our hats to freedom, financial creativity, and helping people turn their lives around.

And did we mention the excellent returns possible? Shouldn’t forget about that.

The Commercial Investing Center Team Flickr / Ewan-M