Before exploring private lending, let’s take a moment to discuss how banks operate. This is an over simplification but primarily banks make their profits by taking deposited funds and turning around and lending these funds to borrowers. The bank pays the depositor interest for the money on deposit and on the lending side, charges the borrower a higher rate of interest. The spread between what the bank pays the depositor and what the bank charges the borrower is the bank’s earnings.
This fundamental practice provides the bedrock for the foundation of our economy. Community banks using sound financial and banking practices with the backing of FDIC insurance provide guaranteed savings and with those funds make capital available to communities to grow and expand. Community banks are the lifeblood of thriving communities and moving our money back to these community sources will strengthen and grow Main Street.
As important as banks are for stabilizing economies, they do have limitations when it come to the versatility needed for the growth and vitality of a real estate investment company such as Steed Talker Realty & Investments. These limitations open doors of opportunity for Private Lenders. These doors of opportunity allow the Private Lender to enter into the business of providing loans secured by real estate to local real estate investors. These loans to the successful real estate investor yield the Private Lender higher than average rates of return and provide capital to local businesses. In partnership, the real estate investor and the Private Lender can collaboratively help strengthen the local economy, stabilize property values, and create jobs while earning good returns on investment.
The information contained on this site is for educational purposes only. It is not intended as an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and fully understanding such documents. Steed Talker Realty & Investments and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. The information on our website should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.
Allen Lomax is a licensed realtor in the State of North Carolina and he does not provide tax, legal, or investment advice. Allen Lomax does not endorse or recommend any contributor, company, or specific investments. Any information communicated by Allen Lomax on this site or through any other means of communication, is for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your legal, tax, and accounting professionals.