Only offer collateral if the lender insists. Slow that car down and don’t get too excited. In this series I’ve been sharing with you about borrowing money, borrowing money without going to banks and without qualifying for loans. That’s my favorite way to borrow money. I’ve got a whole system on this called Borrowing Volume Six. It’s in my system of training you how to become an amazing real estate investor and build a terrific real estate business. You can find that by going to streetsmartinvestor.com click on tools and click on Volume Six Borrowing.
What I’m sharing with you right now is the fact that in some cases, (in many cases) the lender really doesn’t care about putting this against a particular property. I’m being very careful to share this with you because I want you to be extremely powerfully responsible around when you borrow someone else’s money that you are in a position to pay that money back. The thing that really makes it valuable is if you give a mortgage against the property and that property sells, then you have to give the money back because it’s secured by that individual property.
What that means is Mrs. Jones now got her money back and she’s not earning anything on that money while it’s sitting there idle. Alternatively though, if you borrow that money on a promissory note, then that money is earning interest the whole time that it’s out. So you put the promissory note with a period of time. It could be 1,2,3 or 5 years. During that period of time, you’ve got the freedom with that money. Keep that money working and you can make a lot more money on it.