Most real estate investors realize that real property is the best security ¬That’s why they invest. It only follows – if investors have “extra money” (heaven forbid). It should be invested in real estate. Offering small loans, secured by real estate, provides safe, easy money (passive-type) if you decide to stay home and watch TV for awhile. It’s even more attractive to someone like me who’s always on the prowl for a “super buy”—Let me explain.

Naturally I’m happy to earn a high rate of interest on my money – say 4 or 5 times what banks pay — Still I don’t wish to become a permanent “couch potato”. I still like action – furthermore, I like this kind of action which causes hard money lends to throw-up on the couch – namely, a default or fore¬closure on their loan!

Should the property owner (borrower) have the audacity to not send in his mortgage payments to me or any of the other lien holders – whoa be unto him! I’m off my couch and ready for action! I only have 2 lending rules:

1. Would I like to own the property? My answer must be yes.

2. My loan, plus all other loans must not exceed 60% of what I judge the property to be worth (no appraisal needed). See how simple this is!!