Accredited investors have options that other investors simply don’t have. Attaining a certain financial profile, experience and assets means accredited investors are approached with investing opportunities from private companies to fund startups, expansions or other investment needs. With startups, orAccredited Investors any equity investment for that matter, there is a higher level of risk.

Yes, the accredited investor has assets other than capital to evaluate such requests to see if a new business venture is indeed not only viable but profitable for the long term. Still, there is risk. Yet many such individuals aren’t aware they can in fact make double digit returns with minimal risk. They can do so with private lending in real estate.

There are residential and commercial real estate properties all across the country that needs some sort of seed capital to get the project up and running. Most such properties are in dire need of repair and in such a shape that traditional real estate lenders such as retail banks won’t place any sort of loan on one of these properties due to its current condition. Private developers seek out these properties to determine whether or not a complete renovation will bring the property back to profitability as a rental unit or a flip. These developers have professional staff members specializing in various aspects of a real estate transaction including contractors, real estate agents, attorneys and title examiners. These developers also find buyers for these properties. And that’s where an accredited investor can safely make double digit returns.

Short term development loans on real estate provide private individuals the opportunity to lend money for terms as short as 90 days up to two or three years. These loans carry double digit returns over this short period and are secured by the real estate being renovated. One the project is completed, the accredited investor receives both the principal as well as monthly interest paid during the course of renovation. High returns don’t always equate to high risk. Not in the world of private real estate lending.