The AREI Private Money Lending Process: From Start to Finish
American Real Estate Investments offers private money lending opportunities for accredited investors. Private money lending is a passive form of investing that can earn a fixed, double-digit rate of returns, depending on the individual project. If you’d like to get involved with private money lending with AREI, here is some information to get you started.
What is Private Money Lending?
Private money lending is an investment where you act as a bank. You help fund development, build or another enterprise. In return, you receive a guaranteed rate of return on your money. You receive a monthly dividend that you can count on. At the end of the term, typically between 8 to 16 months, you receive your principal investment back.
What Guarantees Come With Private Money Lending?
When you invest in private money lending through American Real Estate Investments, you are guaranteed a fixed rate of return. On the current raise, the rate of return in 12%. Other raises in the past have also been in the double digits.
The other guarantee you get with private money lending through AREI is first lien position. This means that if for any reason the borrower defaults on the loan, you and the other investors can foreclose on the property and take possession.
How Does Private Money Lending Compare to the Stock Market?
Private money lending has a number of considerable advantages over investing in the stock market. For one thing, the stock market is inherently volatile. One minute your money is worth a certain value, and by the end of the day, it’s something different.
For another thing, investing in the stock market requires a significant amount of babysitting if you’re going to do it right. You need to constantly watch the market, waiting for the right time to buy and sell so you don’t lose your investment entirely.
With private money lending, you do all your due diligence up front, and there’s almost no volatility, and definitely no babysitting your money required. Private money lending is one of the most passive income models that exist.
What is the Private Money Lending Process at AREI?
The private money lending process at AREI is fairly straightforward. The first thing that happens is the investor reaches out to AREI through the contact form on the website at AREIUSA.com, either through email or phone call. Next, a member of our team will contact you.
During this follow up phone call, our team member will ask you about your investment goals. You’ll discuss what you’re looking to get out of your investment, and what your expectations are in terms of return on your money. This helps our team member to best match you with an investment that will meet with your goals.
You’ll also discuss your past history with investments and your cash position. This is to ensure that you are an accredited investor. This part of the process helps protect your interests, as well as our own fiscal and legal responsibilities as a company that offers private money lending opportunities.
Our team member will ask if the funds are going to be coming out of a retirement account and if that account is already self-directed. If it isn’t, then the team member can offer you a list of some companies that can help you in getting your IRA or 401k self-directed so you can invest in real estate.
At this point, our team member will send you a PPM, or private placement memorandum, which will have the details of our current private money lending opportunity. You’ll have adequate time to read over the PPM at your leisure or confer with your financial advisor if you wish.
if the PPM looks attractive to you, then you would contact our team member to let him or her know that you’d like to move forward. Our team member would then give you the details for transferring your investment into the escrow account, where your money will start to earn interest immediately, even while the raise is still ongoing.
Once the raise is complete, you would start receiving monthly dividend checks at the specified rate for the entire term of the project. This money would go back into your self-directed retirement account either tax-free or tax-deferred, depending on the details of your account.
At the end of the term, you would receive a bonus payment that covers the interest on your investment while it was in escrow earning interest before the raise was complete. You would also receive your principal balance back in full.
You will also at that time have the opportunity to roll over your investment into the next private money lending opportunity. If you chose to do this, your funds would simply be moved into the next raise. If the project was different, you would review the PPM and the terms, just as you did with the first project.
As you can see, investing in AREI’s private money lending opportunities is a very straightforward and transparent process. At all times, you have an AREI representative who guides you through the entire process. And by the way, the process can take as little as one or two days before you start earning fixed, double-digit returns on your money.
How does this sound? Are you interested in private money lending opportunities at American Real Estate Investments? Currently, AREI is offering a private money lending opportunity that pays a 12% return on your investment. To learn more, visit AREIUSA.com and fill in the contact form. A representative will reach out to you with more information about this exciting opportunity.