Making the wrong choice about a real estate investment can be a truly painful experience, not only for one's wallet but for one's ego. While the monetary loss will eventually be recovered, the shock to one's business sense is not so easily overcome.

Still, the prudent investor must always look to real estate to invest a portion of his/her portfolio as it is historically the most stable and reliable of investments. The key, however, to successful real estate investing is to use private money lending institutions. Here are the reasons why:

They Provide Superior Returns – The real estate investments brokered by private money lending institutions are among the most lucrative of secured loans in the investment world. Typically yielding between seven and eleven percent, these investments are among the highest yielding in the industry and there are loans that fit the risk tolerance of almost every investor.

They Offer Excellent Security – These loans are as secure as traditional real estate investments as they afford the same or better protections than conventional real estate loans. Earnest money, escrow, inspections, appraisals and all proper documentation is required. They also offer an additional level of security as the loan-to-value ratio is usually much more favorable for the lender than in a transaction involving a single family home.

Their Overall Convenience – Private money lenders provide a venue where investors, borrowers and investment deals are all brought together. In addition, experienced professionals are involved in every step of the process and can identify and offer solutions to potential problems before they become more serious. These two facts mean that an investor can easily and safely find a deal that suits his/her financial needs as well as their risk tolerance.

The Bottom Line – Private money lending may sound somewhat daunting but it is actually the ideal way to make a real estate investment. Not only do investors receive superior returns, they are safeguarded to a superior degree and can choose an investment that suits their lifestyle. In other words, there is no need to become an “active” investor if you just want stability, security and an above average return.