All Forum Posts by: Jaša Rot

Quote from @Rick Pozos:

I think you just found out the hard part, which is to find the lower interest lenders. Most people do not want to lend out money at 5% or 6%. Sometimes even 7 or 8% lenders are had to find for 3 or 5 years much less for 15 or 30 years.

 exactly

but im sure its possible because people are doing it

Hello Marshall,

thank you for your reply.

my idea was to sign a trust deed and promissory note with the borrower so that the loan is secured by collateral. And then I would use trust deed and promissory note to get a loan with lower interest rate

Hi guys,

my name is Jaša and i have recently read a book about banking that opened not only my eyes regarding financing but my whole brain...

So basically the idea is to become private lender (or trust deed investor). You borrow money for lower interest rate (say 7%) and then lend it out to someone with higher interest rate (12%) = arbitraging 5%

This is absolutely genious! 

Has someone experience with this?

I have found broker who will relay me borrowers' information, so I only need to find someone to borrow for low interest rate from.
Any help will be much appreciated!

Thank you very much

Jaša