How to use private equity real estate investor funding to make even more money?

Private equity real estate investor funding is one of the most profitable ways you can leverage your financial reach and buy more real estate investments than you can normally afford as an individual or a small company.

It is not for the faint hearted but it works very well when you know what you are doing. 

You need to first understand that getting a mortgage is some sort of private equity funding generated by you with your mortgage lender. The purchased property is bought by the bank and owned by the bank until you pay off your loan with interest. 

There are companies that will lend you money for a part ownership of the property and the income generated from the investment will be given back to the company in the form of a loan or as share dividends. 

The fact that it is a private deal means that you need to maintain as much control as possible on how the property is managed and how the accounting is done. You cannot leave it to chance and since the SEC and stock exchange have limited influence you could be swindled out of the deal with a handshake, a pat on the back and shown the door. 

Public equity funding is much more open because their books are audited and scrutinized BUT even they can be falsified. Remember Enron? 

You need to hire your own lawyer and CPA (accountant) whom is an absolute expert in private equity real estate transactions and contract management. You also need to study books so that you can educate yourself on how you can asses the lawyer/attorney and your accountant’s ability to help you make money. 

You are not here to be friends, you are here to make money and that is it. You need to understand that if you miss a small loophole you will loose your investment without fail. 

Private equity is a game for sharks and the stakes are high. Property investment is usually a safe way to invest but when you take this route you need to understand that it is where champions play and they play hard to make money whether they loose or win. If you make money while the deal goes sour then you can play in this field. You have been warned! 

There are many private equity companies that will fund real estate investments but they want control of the investment and you must never relinquish control willingly while being blinded by the big checks. You must retain controlling interest in your investment; trust no one but yourself to make the right choices and DON’T BLUFF YOURSELF, it can get very expensive.