How do I Know if this Type of InvestmentIs Right for Me? Let’s take a little quiz to see if you are right for these types of investments: - Are you looking for diversity in your investments?
- Are you looking for the “grand slam”?
- Do you have your primary investment needs taken care of already?
- Do you need the money REAL soon?
- Are you the nervous type?
- Can you handle the thought of “risk”?
- Have you invested before?
These investments might be right for you if you answered: - YES. If you already own other types of investments, then real estate investment and private lending is definitely worth looking into. That’s because having all your investments in one type (growth mutual funds for example) often means you have your “eggs in one basket”. Risky. Having some of that money spread out in very different investment types can actually reduce your overall risk.
- NO. We are shooting for a generous return for a reasonable risk, and not for some “snake oil” story of instant riches.
- YES. This is money you can invest without drawing upon it soon. That will help you because, typically, the longer you can have your money off and working for you, the higher returns you can generate.
- NO. If you need the money for your child to go to college this fall, this may not be the investment for you. You should be able to put this money aside and forget about it until the renovation project ends.
- NO. Let the “Nervous Nellies” own stocks and sweat what the news will be each night. If you’re satisfied with only periodic updates on how your investment is doing, not only will you sleep better, but your investment choices will be much broader.
- YES. As we explain elsewhere, your investment is covered with ample collateral. But of course that does not make it totally risk free. Should a foreclosure occur, the good news is you now may potentially receive much more than your investment back. The bad news is you may have to wait through part of a market cycle to receive it.
- YES. “First-Timers” are generally more nervous than most. They might be better suited to invest in things like mutual funds that have a daily value in the newspaper, and come with plenty of letters and website information from the fund manager. It may take a bit of time to “graduate” to these private investments.
Investment Returns are the Goal, But Risk is Important to Consider Too No investment is Risk-Free. If absolutely no risk is what you are looking for in an investment, keep looking. Even in a Government investment there is some amount of risk. Why? Because often those investments provide a rate of return that doesn’t even keep up with inflation. Though Treasury Bonds and other government investments can be the safest around you’re still taking a purchasing-power risk with them. Certainly, there are no guarantees with investing in real estate. What you are probably looking for is a solid return for a given amount of risk. What if Something Goes Wrong? - What if the borrower doesn’t stay current with the interest payments?
That’s a good question and it’s the same one banks deal with. If a borrower can’t keep up with the payments you agreed upon, then you, as the mortgage holder, are able to foreclose on the property. Because we only help deal in situations where the property is worth substantially more than any loans, there is normally a lot more equity in the property to cover the loans once the property is sold. - How do I know I can trust you?
The good news is you don’t have to take a flying-leap-of-faith in this program! Everything is visible: You get to learn about the property’s value, comparable properties in the area, the proposed use of the loan proceeds, etc. Only when you have all the facts do you decide on investing. You’ll also know exactly which property you are investing in or loaning against. Compare that to buying a mutual fund, where you have only a vague idea of what the investment manager has put your money into. Still interested? If so, we invite you to click here to find out more about the opportunities you may not have heard about before.  Learn About These PRIVATE Investments
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