Private Lending Made Simple: A Step-by-Step Overview

Private Lending Made Simple: A Step-by-Step Overview

Private lending can sound intimidating to newcomers, but it's actually one of the most straightforward—and powerful—ways to invest in real estate passively. If you're looking to grow your retirement savings, generate steady income, and minimize hands-on management, here’s a simple step-by-step breakdown to help you get started.

Step 1: Understand What Private Lending Is

Private lending is when you loan your money to a real estate investor or company, secured by a property. Instead of earning minimal interest in a savings account, your money is put to work in real estate deals, typically earning between 8% and 12% annually.

Step 2: Evaluate the Deal

Before committing your funds, review key details:

• Loan amount

• Property value

• Borrower experience

• Exit strategy
  The loan is usually secured by a first or second-position mortgage, providing you with legal protection.

Step 3: Secure Documentation

The borrower will provide you with:

• A promissory note outlining repayment terms

• A mortgage or deed of trust securing the loan to the property

• Proof of insurance, naming you as the additional insured

All documents should be prepared and recorded through a title company or attorney for added protection.

Step 4: Receive Monthly Income

Most private lending agreements are interest-only, meaning you receive monthly payments without principal repayment until the end of the loan term. This provides consistent, passive income.

Step 5: Get Repaid or Roll Into Another Deal

At the end of the loan term, you’ll be repaid in full or can reinvest in another opportunity.

Private lending is simple, secure, and profitable when done right. It’s not just an investment—it’s a partnership that helps families stay in their homes and creates real financial growth for you.

Would you like to know more?   Contact Alex at [email protected] or call 501-580-2598

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What Is a Beneficiary Deed—And Why Every Arkansas Homeowner Should Consider One

In our last newsletter, we talked about why simply having a will isn’t always enough to protect your property—and your family—when you pass away. Probate can slow everything down, cost thousands in legal fees, and create unnecessary stress at the worst possible time.

So what’s a better option?

One powerful tool available to Arkansas homeowners is a beneficiary deed. Also known as a “transfer-on-death” deed, this legal document allows you to name who will receive your property after you pass—without the need for probate.

Here’s why it matters:

• ✅ It’s fast – The transfer happens automatically upon your passing. No courts, no waiting.

• ✅ It’s affordable – Filing a beneficiary deed typically costs far less than going through probate.

• ✅ You stay in control – You can revoke or change the beneficiary at any time while you’re alive.

• ✅ It protects your family – Your loved ones can avoid the delays and headaches of probate court.

We recently worked with a family in a situation that could have been avoided if a beneficiary deed had been in place. Instead, we had to race against the clock to prevent foreclosure—navigating probate issues, legal paperwork, and lender delays. We’re grateful we were able to help, but we want more families to avoid that kind of last-minute stress.

If you own property in Arkansas and want to make sure your loved ones are protected, now is the time to take action.

Would you like to know more about how to grow your retirement nest egg? Contact Alex at [email protected] or call 501-580-2598