Private money lenders

[Nicholas Walsh]

My question is how do private money lenders earn their money back? Is it just monthly payments from the buyer? Can anyone give examples?

[John Fortes]

Once they make their investment, the operator then either pays monthly or quarterly per the structure and that equates as passive income for the investor. If there was a chance to force the equity and refi, their initial capital is then returned to them while still collecting the passive investment per the structure of the deal permitting them to be in and not a buyout of returning initial capital. Again, its all based on the structure of the deal. Other than that, their initial capital is returned at the sale of the investment and they collected passively the whole length of the deal. Hope I made some sense of this as I understand it can be confusing.