Millennials And The Hard Money Advantage
Few of you probably know many Americans who grew up during the Great Depression. The men and women of that generation are among those who fought and won World War II. Newsman and author Tom Brokaw gave them the label, “The Greatest Generation” and I think it’s a fitting honor.
If you’re fortunate enough to know any members of The Greatest Generation, you’ll know that the hard times of the Great Depression gave them a deep appreciation for the value of money and the risk inherent in the stock market.
I bring this up because I think the generation we call the “Millennials” has learned the same lesson from what popular media now calls “The Great Recession.” Many saw their parents’ retirement accounts all but wiped out by the crash in stock values during that period. Professional investment analysts have been recently commenting on the fact that Millennials seem to distrust the stock market. Apparently, they are seeking other investments.
I think it’s good to soberly consider investment risks and it looks to me like the Millennials are displaying a great deal of common sense. On the other hand, it makes no sense to just sit on your cash and watch inflation reduce its value day in and day out, and despite how “bright and shiny” precious metals seemed not long ago, they have certainly lost their luster.
As Millennials get into their home buying years, I suspect they’ll realize what a solid investment home ownership is and by extension, they will begin to appreciate the fact that First Trust Deeds are a great investment as well. Unless we decide to conquer Canada or Mexico (just kidding, neighbors!) they aren’t making any more U.S. real estate.
Although I’ve been centering this discussion on Millennials – or Generation Y, as they’re sometimes called – the principals apply to all of us. Investing in First Trust Deeds is a way to secure a double-digit return on your investment, without suffering all the whiplash-causing ups and downs of the stock market.
And getting back to the risk aversion Millennials seem to be experiencing, here’s how we mitigate it at Evoque Lending: First, we insist on some 40 percent of protective equity in our First Trust Deeds. This gives our investors the security they need. Second, we thoroughly vet our borrowers to be sure that they are able to meet their monthly obligations and make the payment on their mortgage.
A safe investment
When those two “pieces of the puzzle” are in place, it makes investing in First Trust Deeds a conservative play that delivers a very attractive rate of return. Further, our investors always have the final word of approval and we are able to dial in the term to meet an investor’s needs.
We have been writing First Trust Deeds on Orange County real estate, Los Angeles real estate and property in the San Francisco area for more than 15 years. We know the markets and have a long history of satisfying our investors.
Are you a Millennial, or do you have a few more years of experience than that group? Either way you owe it to yourself to give us a call and find out more. Please pick up your phone or drop me an email today, and if you have any friends who are looking for a good place to put their money, why not tip them off about investing in First Trust Deeds?