Managing Your Money
by Russ Dalbey
Financing Without Banks: What You Should Know
A new trend dubbed "peer-to-peer" financing is emerging in the crowded real
estate financing arena and it's already more common than most people think.
Simply, instead of borrowing money from a bank or other financial institution to
purchase a home or small business, private individuals become the lenders.
Surprisingly, this "new" trend isn't so new at all. People have been lending
money this way for hundreds of years. Before banks, if someone wanted to buy a
wagon from their neighbor, or even a local merchant, the buyer and seller simply
agreed to the price and the terms, and the buyer made installment payments
directly to the seller. No bank or lending institution was involved. Today,
these simple and effective financial arrangements are making a comeback.
The Untapped Peer-to-Peer Lending Market: Cash Flow Notes
Private financing is an attractive option for many transactions, particularly
real estate. Now a $350 billion industry, peer-to-peer seller financing is a
growing, global phenomenon. Already, the sale of most small businesses
incorporates peer-to-peer lending and one in 13 American homes is purchased
using these cash flow notes. Currently, there are approximately $91 billion in
privately held single-family residences and another $200 billion in commercial
real estate notes. In fact, there are so many cash flow notes in the U.S. alone
that if you could find and purchase $1 million worth of notes every day, it
would take more than 240 years to find them all.
Two Ways to Make Money
Many private lenders would sell their notes if they knew the option existed-just
like banks do every day. This creates an enormous profit potential in a hugely
untapped market. Most people get started in cash flow notes by simply matching a
seller-someone who's holding a note-with a buyer and then collecting a fee for
putting the deal together with no capital outlay required. Additionally, many
investors are looking to buy these notes. It is not uncommon to receive returns
of 20 percent or more as well as immediate monthly cash flow. Because these
notes are secured by real estate, they are extremely safe investments. Today,
thousands of people all over the country have tapped into this trend and are
making a full- or part-time salary in the cash flow note industry.
Bio:
As the CEO and founder of The Dalbey Wealth Institute, Russ Dalbey has authored
dozens of best-selling books and articles on the cash flow business. A highly
sought-after public speaker on the topics of wealth, success, and personal
motivation, he also holds a record in The Guinness Book of World Records for
cycling.
Russ is considered the premier authority on making money in the cash flow note
business. Russ Dalbey has been teaching his moneymaking method now for almost
two decades, and is considered among the leading educators and experts in the
cash flow note field today. Russ Dalbey is truly delighted to bring his vision,
experience, knowledge, and energy to anyone who is just discovering the note
business for the first time – people who are looking for a better way to live
and love life.