Investment Risk
Risk is an important consideration.
There are no risk-free investments. Even government investments are not risk-free. Government investment's rarely give good returns and usually don't even keep up with inflation. Government investments like treasuries and bonds are a great way to safeguard money, but they provide little return and there is still a risk.
Like any investment, there are no guarantees with real estate. The formula for success is a good amount of returns for a given amount of risk. Like the banks, if a borrower does not make interest payments, then you foreclose on the property.
We only deal with properties that are worth much more then we buy them for, and there is considerably more equity in the property then the amount of the loan. This makes for one of the safest investments around with some of the best returns
Your given all the facts:
Your given all the information on the property you will be making the loan for. Everything is transparent and out in the open. Compared this to buying stock or mutual funds funds where you can only get an idea of value from vague information about the company and the person management the funds.
- Nearby comparable properties.
- Sold price and date information
- Any repairs if needed
- Expected after repairs value
- Exit strategies
You can even decide how the proceeds from your loan can be used.
Some things you should know about investing and how we invest.
- We look for great returns and low reasonable risk. We are not looking for get rich quick deals that are high risk, or promises of millions with get rich quick schemes and pictures of over sized checks.
- You investment is backed by ample collateral. As stated, all investments carry some amount of risk. Should a foreclosure occur, you can actually receive much more then your investment was worth. However, you may have to wait longer to get it.
- You should not use funds that you need for living. If you have a major purchase coming, then this is not the place to put those funds. You should put needed money aside and only use true savings or extra income for your investments.
- If your a first time investor, this may not be for you. First time investors are usually more nervous about making investments and should invest in things like mutual funds and other securities. It may require a better understanding of investing before you are ready to move up to these kinds of private investments.
If your looking to diversify and own other types of investments while getting excellent returns, then private lending and creation of notes is something you should explore further. Having all your money in any one type of investment such as mutual funds or stock can be risky. One of the best ways to reduce risk is to diversify and spread your savings around in different investments. Investing in real estate and the creation of notes is a fantastic opportunity.
We have long-term and short-term programs. Both provide excellent returns, but the longer you can keep your money working for you, the higher your returns can be.
Let the brokers sweat over wild swings in the stock market. The markets, and market investments can be up huge one day and in the tank the next. It is a wild ride for the average investor and many are afraid to even look at their retirement statements.
Real estate provides an excellent return and stability.
Click here to find out more about available opportunities.
