With that, we became the American Association of Private Lenders—and we began spreading the word.Finally, Some DefinitionsUnderpinning the concept of minimizing the use of “hard money” in our industry is a recurring theme of standardization—that the root of the issue is too many interpretations of what the same terms mean.We offer up the following definitions for discussion, debate, fine-tuning, and eventual consensus [last updated 5/9/2022]:Private lender: Any non-depository individual or entity that primarily originates business-purpose loans secured by hard assets, generally real estate.Hard money lender: A subset of private lender where creditworthiness is determined solely by the securing real estate collateral.Correspondent lender: A subset of private lender where the closed loan is sold to investors.Portfolio lender: A subset of private lender where the closed loan remains in the lender’s portfolio.Fund manager: A subset of private lender where, depending on the fund structure, the deployed capital is sourced by offering exempted securities to accredited and occasionally non-accredited private investors.Private investor: An individual or entity that seeks a return by deploying capital through a private lender or fund; the investor may or may not be named on the loan’s promissory note.Private money broker: Any individual or entity that acts as an intermediary between a borrower and a private lender without directly originating the loan.

There are so many strategies you can deploy depending on your goals going forward. 

I would really like to hear from someone who has deployed their tactics and completed a deal to get a view of the full range of experience with them.

Again, the goal is to work with them early on to prepare them for the refi within 5 years.As to capital deployment, that is the advantage of the fund model.

I am also a great believer in investing when there is distress and deploying capital when you can.If you are looking for yield in the short run, Manhattan may not be for you.

To that end, a primary residence does not generate income that one can deploy toward expediting early financial freedom.

I have $60k-$100k that I'm willing to deploy, and do some learning with.

Why share my dreams with them, they have no clue nor do they want to know… It will literally drag you down…Back home (I’m deployed) it’s hard for me and my wife to even find friends that can afford to hang out with us…I’m not trying to brag but I can give you a few examples.

Also the opportunity cost of not deploying your capital in an investment vehicle yielding more than 7% is high. 

Those who fail in the sinlge family space purchase in stagnant markets that never experience the appreciation event, sell too early, or continue to own and operate the portfolio after the neighborhood transition occurs and therefore fail to re-deploy the equity when the opportunity presents itself.