So which is a better investment…the Stock Market or Real Estate?
Well, one answer is: it depends. On a lot of things. One of the main things it depends on is who and what you know.
But here is an interesting fact: Most people have a majority of their long term retirement money invested in the stock market. And here’s another sad but true fact: The majority of people have not experienced ANY growth overall in the stock market over the last NINE years, other than what they have contributed. Many people I know personally have experienced a ZERO percent or below return over the last 9 years. That’s just wrong.
It is commonly said and believed that the stock market will do well for the long term investment. But is that really going to work for you? We better hope you have a REALLY good money manager and a whole lot of luck if so. Just to get a 10 percent growth average after nine years of zero percent, is going to take 9 years of 20% PER YEAR growth. Likely? Not at all.
So how about this alternative scenario: Loan some of your money to an expert real estate investor, keep your money sheltered from loss by being secured by real estate with equity, and experience 10 to 12% growth consistently year over year.
If you had earned 10 to 12% interest for the last nine years, your retirement funds would have MORE than doubled, not including any new contribution.
And right now is GREAT timing to get out of the stock market. It has bounced back significantly since the low point in march of this year. Do you really want to risk it dropping again? Wouldn’t it be a good feeling to KNOW that your retirement account was going to double every 6-7 years? Or would you rather wait around and wonder if your money is growing or if it will all-of-a-sudden shrink in half again over night?
OK, so you know my opinion…real estate is far more safe, more consistent, reliable, predictable, etc. etc. etc. But you still have to use sound investment principles and make wise decisions. And that’s where I bridge the gap for a lot of people. Because of my experience and knowledge, I help people win consistently by loaning money on real estate. That is my business. Real estate investing is all I think about (in my working hours).
Over the last 3 years I have borrowed over 7 million dollars, and every one of those dollars has returned between 10 to 15% interest annually to the lenders. I have personally SOLD 72 of the houses I bought in the last 3 years, and not ONE of the people who loaned me money on those has lost so much as a penny. Why??? Because they made conservative loans. I didn’t overleverage properties. I always bought with plenty of equity. And lastly, I have integrity and I do what I say I will do, even when it means I lose money myself.
Have I made mistakes in the last few years? More than I could recount to you in 20 pages. On five of my worst early projects, which were some of my biggest learning experiences, I lost a NET of over $90,000 personally! Yes, it hurt. I tried to run faster than I had strength initially. But every one of my lenders on those deals earned their agreed upon interest and were very pleased. And they continue to loan money to me today. Right now I have 27 fix-and-flip properties in some phase of the process of renovating and selling.
Fortunately now I don’t make as many stupid mistakes and I actually MAKE money instead of losing it (which kind of helps since my family is addicted to food after all).
So why am I telling you all this?
Because I have some good opportunities for you and you’re more likely to be able to take advantage of them if you have more information. I will say it again, this is VERY good timing to get out of the stock market and into some fixed rate loans. And of course it is ALWAYS a good time to start earning 10-13% instead of 0 to 1% which is what you are getting with banks right now. Eight or nine months ago would have been the worst timing to liquidate your stock market investments, but right now is a good time to get out in general. And YES, you CAN invest your retirement accounts in real estate…its easy, call or email me anytime and I’ll show you. Or go to Equity Trust’s website to learn how right now. If you have ANY investment capital that is not earning 10-13% interest or more, now is a great time to get in touch with me to see if I can help you rectify that problem.
Here are some loan opportuniteis I have available right now: (LTV = loan-to-value - lower is better)
2nd Position loan: $45,000 – 13% interest – 6 month term – 75% LTV – House in Baker subdivision, very hot area. I need the money in short order so I am willing to pay a little more.
1st Position loan: $65,000 – 10% interest – 6 month term – 52% LTV – house worth $125K – call or email for address and details.
2nd Position loan: $25,000 – 12% interest – 6 month term - 72% LTV – house worth $125K
1st Position loan: $80,000 – 10% interest - 5 year term – 72% LTV – house currently worth $110K (this is a rental property I currently own that I need to refinance)
1st Position loan: $125,000 – 10% interest - 4 year term – 71% LTV – house is worth about $175K currently and going up. This is a rental property that I just finished remodeling.
If you have any investment capital not earning at least 10-13 interest, now is the time to get in touch with me. It doesn’t have to be the exact amount as above. Just click on the contact tab to send me an email or call me at 720-352-2671 we can discuss your situation.
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