Bank Advisor

Copyright (c) 2009 George Antone

If there was an incredible secret that has been around for centuries that can make you very wealthy, would you want to know it?

Well, there is, and I will reveal it here. But just because I am offering it for free in this article, please do not undermine its value.

It truly can make you wealthy.

The secret has been staring us right in the face the whole time. It is on every corner.

It is banking! Banks have existed for centuries for a good reason – they are profitable.

Individuals can do this and participate in some of the same benefits through something called “private lending.”

Many investors say, “I don’t have the money to lend out!” Banks do not lend their own money. Neither should you. You need to learn to lend out OPM (Other People’s Money).

It turns out that private lending is very similar to banking. They make money the same way.

If you are looking for an investment that gives you cash flow, you ought to consider Private Lending!

There are a few keywords one needs to know about lending; “Arbitrage” and “Leverage.”

“ARBITRAGE” at a basic level means making money off of spreads! i.e. borrowing money at a lower rate and lending at a higher rate.

“LEVERAGE” is controlling a larger asset with a smaller amount of money. Leverage is simply the use of borrowed money.

So here are some things people can do with private lending:

1) One can lend money at a higher interest rate, and borrow at a lower rate creating a nice spread.

One might think, “Isn’t that how banks got into trouble?” – The answer is no. Banks got into this because of greed! They were making 100% loans and taking on all the risk. Any savvy banker or private lender will tell you that by doing this, the banks shifted the risk to themselves.

2) One can leverage money 3 times or more and lend that money out. So if you can take $10,000 and leverage it 3 times, now you have $30,000 in leveraged money that you can play with, PLUS the additional $10,000 (in most cases), giving you a total of $40,000 to lend out.

3) If you combine the above two, here is where you get “magic” in private lending – what most private lenders don’t even know how to do. Use a certain amount of OPM, leverage it 3 or more times, and lend it out.

Now here is the kicker. All this can be done in certain cases WITHOUT much risk to the lender. What does that mean? If things went south, you are not liable.

So if there was an incredible secret that has been around for centuries that can make people very wealthy, would you want to know it? This is it, and it is just the tip of the iceberg!