Investing in Start Up Companies – How to Become a Private Money Lender

There are many different ways to invest your money, especially when you are investing in startup companies that may not have safe guards in place to protect investments. One of the most hands-on ways to get involved with new businesses is to become a private money lender. However, private lending is not something that you should blindly rush into. It takes a certain level of trust in the company that you are investing in, as well as knowledge about the banking and investment fields. You may wish to use the services of an attorney along the way to make sure that everything is legally solvent and crystal clear.

To begin with, when you are investing in startup companies there are a few steps to follow. Private lending begins with educating yourself about the field. You can sign up online to take courses that will teach you about banking, loans, and real estate management, all of which will help you with your investment. The more that you can soak up before sinking your money into this, the higher the chances are of you making a sound investment. Study the market carefully and ask any questions ahead of time that you might have about the small business’s market plans.

You might want to also run credit checks or find other ways of ensuring that the borrowers will be capable of paying back your private loans. This can be tricky when you are investing in startup companies, because oftentimes the business owners will have already sunk most of their own assets into the company. To help protect your own interests, this is where it’s helpful to have a lawyer help you with ensuring that your borrowers are financially solvent. You need to have a high enough level of trust in the small business as well as in the borrower to proceed, with legal backing.

Staying on track of current interest rates is also a good way to make sure that your private loans are set at a level that is reasonable. When you are investing in startup companies, you might want to offer lower interest rates as incentive to the business owner to use your services, but this could prevent you from earning back what you are owed. By keeping tabs on current banking rates, you can stay abreast of the latest trends.

Why Investment Loans Are Not All Equal

So, you’ve decided to invest? This is a decision which could make you serious money down the track, but the first step you need to take is deciding how you’re going to finance this investment. Although it might not seem like it now, the loan you choose for this investment could impact on the amount of return you see from your investment so it is important to choose one that meets your exact needs. The first thing you need to do is seek property investment advice, so that you can get an idea of the way in which you’d like to invest. Once you’ve decided on your investment and the amount you’re going to outlay, it’s time to think about financing. It’s important to remember that one investment loan can vary greatly from the next, so here are a few tips to understanding how they differ and what that means for you…

Be Aware of Application Fees

Just because two loans may seem to have almost identical interest rates, this doesn’t mean you can assume you’re getting roughly the same deal. Many banks will market a loan for its seemingly low interest rates, but then surprise you with an exorbitant establishment and application fee when the time comes to apply for the loan, By this time you’ve usually had pre-approval which means you’ve probably put an offer in on the house, and it can often be ‘too late’ to pull out. If you’re considering a short-term sale on the property a big application fee can be particularly crippling, because you outlay money you otherwise would’ve saved just to get a low interest-rate which doesn’t end up making too much difference anyway.

Fixed or Variable?

One of the most important things to decide on when purchasing a loan is whether or not to choose a fixed or variable interest rate. A fixed interest rate stays the same throughout the duration of the loan, but because you are paying for security it is usually set slightly higher. A variable rate, on the other hand, is often lower, but if national interest rates rise, so will the interest on your loan and you could be stuck paying far more than you’d expected.

Expect Flexibility

The fact is, not even two ‘identical’ loans from the same bank are created equal. While the product may be the same in name, there is a lot of wiggle room for the right customer to bargain his or her way into a better deal, particularly when it comes to a property investment. Because the bank knows that you are investing in something which will in all likelihood make you money, they’ll be keen to keep your business, which puts you in a good bargaining position.

Location, Location, Location: Successful Commercial Investment Property Loans

Real estate is considered a risky proposition to many, however commercial investment property loans have not seen a decline despite the economic climate. Why are investors still purchasing commercial property when residential real estate remains the pariah? Mainly because they remain a guarantee for success, whether you are building a structure to rent it out, purchasing a retail location or using it for your own business, investing properties can still produce short or long term profits if the property is in the right location. The loans differ even from standard commercial mortgage loans.

A percentage of the property value, typically 20%, is a prerequisite for loan approval. In addition the closing costs are due upfront and the responsibility of the company, they cannot be included in a commercial mortgage. And while the length of these loans is the standard 10-15 years with a balloon payment due at the end of the loan, commercial investment property loans are difficult to refinance. Refinancing is an option many businesses use at the end of a commercial mortgage to avoid making the balloon payment, an option that may not be available with investment properties so make sure you can afford the large payment at the end.

Commercial income property, such as industrial office buildings, motels, shopping centers, retail buildings and large apartment buildings, are not hard to find. Many commercial properties are in default, bankruptcy and foreclosure, making it easy to find a good deal. However, the price of the property isn’t the main consideration when determining if it is a good investment.

The location of the property can turn an income investment into an income disaster. A realtor or mortgage broker familiar with the location where you want to invest can tell you if the traffic in an area is suitable for the business you want to purchase or if there is a risk of oversaturation for your potential venue. Commercial investment property loans can still be a successful venture in these uncertain economic times. Due diligence is essential to guarantee success and repayment of the loan. When the research is complete and the decision is made then you can guarantee short or long term success.

Common Suggestions to Consider When Getting a Motorcycle

Not anyone really provides to purchase a motor bike. Yet these types of days lots of men and women want in order to. And an individual may end up being one involving them. Just before you throw your own money down, take a seat and also feel in which warm breeze of liberty, an individual require to ask Alex Figliolia Jr many crucial problems.

Operating any motorcycle is usually unquestionably exciting. It additionally can end up being lethal in case done completely wrong. Consequently, ahead of you actually consider getting any variety of motor bike, assess your own personal knowledge and also possibilities. When you’re any rank newbie, you require to understand how in order to ride. In case you’ve also been away coming from motorcycling intended for a although, you need to take some sort of refresher training course. And in the event that you may already possess a motorbike license, if you’re going in order to need a single to journey legally. Typically the best study course of motion is for you to go for you to a driving school. Alex Figliolia could help arrange this.

The type of traveling you’re serious in will relatively mean you may need to get the sort of cycle you need to shop with regard to. Conversely, typically the kind associated with bike a person ride generally defines your current motorcycling globe and life style. So, apart from selecting the actual motorcycle centered on their mechanical and also performance characteristics, consider just what circles you will likely always be riding in-so to communicate. If anyone don’t consider of oneself as the racer or perhaps a motor cyclist, talk with Alex Figliolia Jr. first. Folks fascinated to sportbikes, on typically the other hands, tend to be able to indulge throughout extreme actions. When you desire to hold with the particular hip-hop group, maybe most likely a candidate. Persons who delight in the visiting lifestyle have a tendency to end up being older-often could possibly be retirees-and tend to be in zero kind associated with hurry whenever they view the surroundings go by simply on just about all sides.

Regarding many cyclists, a applied motorcycle is usually a far better option. Apart from being far more affordable as compared to a brand-new bike, some sort of used one particular is some sort of simple transition purchase. Anyone may locate that the particular bike anyone bought for you to get a person back throughout the sport is in some way lacking soon after you’ve expended some significant time in it. Along with the fact is, quicker or afterwards your very first motorcycle is actually going in order to hit the actual pavement. Will be certainly no purpose that typically the bike a person ding way up needs to be able to be a great expensive 1 right out there of typically the crate. Present yourself some sort of few a few months to obtain comfortable-then you will be a lot more than prepared for the new arranged of tires. Visit to learn more

Invest and Prosper: Goals & Discipline

In mounting an imperative challenge, it is essential that realistic long-term targets be set according to individual aspirations, time horizons, risk tolerances, tax brackets and comfort zones. It’s like embarking on a long highway journey in which there could well be many bumps and detours – maybe even the occasional flat tire or accident – along the way before arriving safely at one’s destination.


Investment goals can vary according to individual lifestyle preferences, estate plans and designated beneficiaries and charities. In addition, they can change as economic and market conditions change and/or as we change; for example, from needing current income to finance a growing family to focusing increasingly on the accumulation of latter-year savings for those ever-lengthening years in retirement.


If there is a single constant in a multi-changing and ever-challenging process it is the importance of building wealth according to a customized and well-constructed investment plan without having to risk precious (and hard-won) savings beyond affordable limits. It follows that successful investing must be a systematic long-term affair in which en passant volatility, distractions and temptations are rigidly subordinated to a purposeful and disciplined building of desired financial resources – for a worry-free retirement above all!

In setting up and managing portfolios to this end, two iron-clad rules must be set, the correct balancing and periodic re-balancing between fixed-income and equity securities, and diversifying the inevitable accompanying investment risks by not having too many eggs int hat one precious basket.

While varying market conditions may dictate periodic holding of cash in reserve, the sooner “investable” savings are put to work – and kept at work – in the right personalized combination, the better. And in this process never forgetting those two golden rules, above of never having too much in one class (or classes) of asset at the expense of others.

In turn, applying these rules to the equity section of portfolios must mean the judicious allocation between different sectors and industries – just as there must be an awareness of credit quality and risk within the debt and fixed-income section of portfolios. Balance and diversification are central pillars of superior long-term investing that can’t ever be emphasized enough.

In building individual portfolio wealth, remember as well that fixed income involves the lending of savings on pre-determined interest rate and loan repayment terms, while equities are the engines charged with growing savings – and therefore overall investment wealth – in superior risk-reward fashion: And that in well-chosen common stocks (and equity-related investment vehicles) are the true building blocks of desired long-term investment wealth.

In selecting top-quality, above-average, building-block stocks it must also be determined how the desired superior total return is going to be best divided between current dividend yield and future capital appreciation; in other words, between income now and growth later. This decision should ideally also include the awesome power of compounding through the reinvesting the rising dividends paid by successful companies in more of the same over time.

Many companies offer dividend re-investment plans as a cost-free way of adding to investment stakes. If investment income isn’t needed for current living purposes, reinvest dividends in more shares of such companies and be astounded at the explosion of equity wealth that follows. Albert Einstein once dubbed compound interest the eighth wonder of the world. DRIPping one’s way to investment wealth – there’s nothing to beat it!

Next week in this two-part series, will follow the other side of the “Invest and Prosper” risk-reward equation – how diversification can expedite the accumulation of desired investment wealth, often with a cherry or two on the top for higher-risk investing – sometimes even with enough to afford the occasional adrenaline pumping speculation! And of how our parents never had the tools we have at our disposal to accomplish their retirement and related investment goals.