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How to earn maximum returns on your retirement pla
With the stock market and the real estate market in a tailspin or jumping around like a frog on a hot rock, it's tough to know where to park your retirement funds. You want something that is safe and
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With the stock market and the real estate market in a tailspin or jumping around like a frog on a hot rock, it's tough to know where to park your retirement funds. You want something that is safe and secured but you also want to earn maximum returns.
One thing I have found that is pretty darned safe is to invest in real estate mortgages as a Private Lender. Now I'm not talking about becoming a Sub-Prime lender but rather a smart lender.....like the commercial banks used to be a few years back. A smart lender insists that the property which secures your loan is worth a whole bunch more than the loan amount. And, if you don't have the government looking over your shoulder telling you who to loan money to, you can be pretty picky.
An experienced Real Estate Investor today can buy great, foreclosed homes from banks for 30-40 cents on the dollar. Banks are actually begging for folks to buy their foreclosed properties. They are desperate. So desperate in fact that they often sell to a bidder who is NOT the LOWEST bidder, if that bidder can close FAST. This is where the Private Lender comes in to the picture. Banks and Mortgage lenders typically require 4-6 weeks for a conventional loan,but a Private Lender can usually fund a deal in a couple of days. I recently saw a situation where a lender actually sold a REO (foreclosure) home to an investor for a 18% LOWER offer than one of the other bidders....Just because the investor could close in a week rather than two months. This is HUGE. The banks are offering houses at half price and if you have cash to close, you can buy for 30-40% of market value.
I don't recommend jumping into the house buying game as you really need to know the marketplace, how to estimate repairs and how to determine the before and after values. Don't believe all the late night TV gurus saying you can get rich overnight by "flipping this house". A good one third of the distressed home sellers I run into are newbie investors who jumped in without proper experience. Call it baptism by fire if you like, but it is just un-necessary. There are many experienced investors who will take most of the risk on their shoulders and gladly pay your retirement fund guaranteed, maximum returns (3-4 times a CD rate) on safe, secured investments.
It is really quite simple. If this seems like something that interest you, we get together and discuss your plans and funds availibility. When a deal comes along that meets your criteria, we send you all the particulars on the house, such as the comps, repairs and market trends in the neighborhood. If you still like the deal, your Plan Trustee wires the funds to the closing attorney who prepares all the documents. You get a Title Insurance policy, a hazard insurance policy, a Mortgage and a Security Deed; just the same as a bank lender would require. When the home is re-sold, the closing attorney cancels all of the paperwork and returns your investment along with the earned interest to your Plan Trustee. It's just that simple. And it is a safe and secured investment because we never borrow more than 60% of the current fair market value. You never have to worry about default because your secured interest is worth far more than the loan
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