It used to be seen as completely insane to stuff the money you manage to save in your mattress. Why not put it in the bank and get some interest on it?
As the saying goes, “That was then, this is now.”
If you’ve studied the meager interest rates banks and savings and loans are paying on deposits, it can be very disheartening. The mattress is looking better every day. This is especially true if you look at the various fees you’re probably paying on your checking account in the very same financial institution where you have your savings.
There’s a winner and a loser in this arrangement, and I’m here to tell you that unless you’re the bank, you’re the loser.
Don’t chase bubbles
For this reason investors tend to look for better opportunities and often that creates the “bubble” phenomenon we’ve seen over the last couple of decades. The “smart” money chases after different investments, driving up their value artificially. We saw that with Internet stock and I think we’ve even seen it with precious metals.
These are some of the solid reasons that many investors are turning to hard money loans to find a much higher return on their money and the kind of security that they feel their financial position requires.
Perhaps we should start at the end: the bottom line. Investing in hard money loans can give you a double-digit return on your money. Enjoying a 10 percent and greater return on your money is what you can expect when you go into this market. How many other investment tools can make that claim today?
These are generally real estate loans and as an investor you are assured of at least a level of 35 percent equity in the property on which the loan is being made. For many investors, this is the level of confidence they need to “pull the trigger” and begin investing in hard money loans.
The way it works is pretty simple, you back one specific mortgage on one property. Generally your money isn’t pooled with others. This way you know everything you need to know about the actual property on which you decide to loan your money. You are the person with the final say on whether or not you feel a specific loan is one you want to fund.
Boost your retirement account
Here’s one more piece of information that should be useful: You can use these investments in your IRA or 401K account strategy. Many of us have watched as pension funds are being increasingly threatened and social security payments are in the cross hairs of the budget cutters. Finding an investment vehicle that can give you double-digit returns may be exactly what you need to meet your retirement goals.
Of course, everyone’s financial situation is different. However, if anything we’ve said here sounds interesting, give us a call at Evoque Lending and we can go over the details with you so you can make the best decision for yourself and your family.