A couple of headlines in the financial news recently made me look twice. One shouted that there are “15 big companies hurtling into a world of hurt.” The other declared that Saudi Arabia was going to start borrowing money for the first time in ages.
Had I suddenly followed Alice down the rabbit hole into Wonderland where conventional wisdom and logic are tossed out the window?
All the companies that were getting ready to announce significant losses were from the S&P 500 and included a wide range of industry sectors: Hess (oil), Amazon.com (online retail and technology), and Mattel (toys and games).
Saudi Arabia’s problem, of course, is being caused by the precipitous drop in oil prices. (Let me ask you a quick question or two: Would you have predicted $50-per-barrel oil a year ago? Do you know anyone who called this price drop?) The world’s biggest oil exporter doesn’t want to eat up all of its cash reserves and it’s running a huge budget deficit. The country depends on oil sales to fund all of its social programs and infrastructure projects.
A bear market?
I mention these to highlight the unpredictability inherent in today’s investment world. Are we on the cusp of a major bear market? Few people will climb out on that limb until the answer becomes obvious…and then it’s often too late for many investors.
In any case, during times of uncertainty, the smart money starts to move to safer investments that deliver competitive – and stable – rates of return. I think there is a strong case to be made for First Trust Deeds in today’s climate. At Evoque Lending, we continue to give our investors double-digit returns on their money.
The California real estate market is healthy by virtually any measure and the areas where we do most of our business – including Los Angeles real estate, Orange County real estate and San Francisco area real estate – are particularly strong. It’s a good climate for first-time buyers, house flippers and real estate investors. If you don’t want to deal with the complications of buying and selling, First Trust Deeds are a great way to participate.
Assuring your safety
The safety of our investors is the prime responsibility at Evoque Lending and that’s why we always insist on about 40 percent protective equity in every mortgage we write. Along with that we know the markets and work with the best appraisers, so we have confidence in the value of the real estate we handle.
The other crucial element is the borrower’s ability to make payments. One of the pillars of our success over the last 15-plus years, is our ability to thoroughly vet our borrowers. This allows Evoque Lending investors to know that they are going to receive their check each month.
When you evaluate your investments, can you see how First Trust Deeds will help you improve its performance and broaden its base? If you don’t have one or more notes among your investments, you should really give them some strong consideration.
Of course, I know that you’ll need more than the brief overview and evaluation I’ve provided here, so why not give me a call or drop me a note via email? I can answer your questions and explain how we can tailor an investment to meet your specific needs.