Are you a real estate investor, high net worth individual, or a financially savvy business person looking to maximize your tax efficiency with your properties?
Then private lending solutions from Tactical Wealth Finance might be right for you. When it comes to investing, the core principals all revolve around getting the most bang for your buck. And while you may not initially think of it this way, when the time comes to make a new home purchase, you are making a significant investment.
That’s why you need a viable solution to help build equity, increase net worth on investments, and get the maximum tax efficiencies possible.
While banks and mortgage brokers are likely the first sources that come to mind when you are considering taking out a new loan, there are actually a few other innovative lending solutions which might be of some interest to you.
In this blog, we’ll cover why private lending solutions have the ability to outperform conventional lending options for investors like you.
Ready to get started? Keep reading to learn more about private lending vs. conventional lending and contact Tactical Wealth Finance Solutions today.
What Is Private Lending?
Private lending solutions are, simply put, loans (typically real estate/mortgage loans) that are offered by a private company.
These institutions are not bound by the strict regulations implemented on traditional lenders from Fannie Mae or Freddie Mac, and thus, they have the ability to provide more flexible terms and savings.
Private loans are typically issued for properties that are ripe for investors, who either want to renovate and flip the home or build equity within the property itself.
Private lending solutions are typically catered to the individual themselves, with shorter terms and customizable benefits such as payment credits, life insurance, friend/family assistance, tax arbitrage, and more.
Whether you have already or are considering an investment in the Fixed Income Fund, our private loans can also offer additional benefits — including up to one percent off of the interest rate for the duration of the loan.
Private Lending Benefits
Like we touched on above, there are a number of reasons why a property investor or individual might want to consider private lending as opposed to conventional lending. A few of those reasons include:
- Lower Rates: Typically, private loans are structured to provide lower rates than banks and other financial institutions because they aren’t bound by the same regulations.
- Asset-Based: Private loans are also advantageous because they are backed by real assets, such as the real estate and portfolio holdings of the lending company itself. This is a deviation from the credit-based system which is riskier and less predictable.
- In House Loans: Another reason why private lending solutions are sought after for many investors is the fact that these loans are kept in-house and on the books for the duration of the note. Banks, on the other hand, typically flip your loan to the highest bidder in order to turn a profit.
What About Conventional Lending?
So, when is conventional lending the right option? Well, if you are a first-time homebuyer or someone who does not have a lot of equity built up, then conventional loans are typically easier to attain and thus more advantageous.
Conventional lending institutions have to follow the criteria imposed by large government institutions, and the terms of the loan are typically much longer (say, 30 years) than private lending options.
But if you are running a business, such as a real estate investment company, or you are looking for ways to optimize your tax structure and investments, then conventional lending likely isn’t the option for you.
Private Lending Options
At Tactical Wealth Finance Solutions, we offer a number of advantageous, asset-based loan programs from which to choose. Whether you are looking to get a more tax-efficient, wealth-friendly mortgage or you want to diversify your holdings while paying just one note, our solutions can be catered to your needs.
You can even decrease your interest rate by full percentage points when you move your current investments over to our innovative Fixed Income Fund.
It’s time to consider a better way to invest. Learn all about the asset-based, private lending solutions offered by Tactical Wealth Finance today and see if you qualify.
