| After years of unprecedented market gains the | | | | rather safe and can result in a good return in both |
| recent financial meltdown has caused investors | | | | the short and long term. The downside is that |
| nationwide to wake up with a head-splitting | | | | there can be a large amount of time required to |
| financial hangover. Believe me, I know your pain. | | | | make this work. |
| The worst was taking a 90 percent loss while | | | | Now what if you find yourself in large group of |
| vested in a technology mutual fund. Who could | | | | over 200 Million Americans who want the benefits |
| have predicted that a well-run fund could lose? It | | | | of real estate investing but don't have the spare |
| was managed by top notch, Harvard educated | | | | time or hard-nosed demeanor needed to be a |
| managers. That one hurt a lot. Real money saved | | | | successful landlord? While not as well known as |
| over years and lost in mere months. | | | | the first two methods, there is a third approach. |
| The security of your investments is becoming | | | | 3) The Passive Method - this style of investing is |
| more and more important these days. Investors | | | | known as making "Private Mortgage Loans". |
| want to be able to anticipate decent returns in | | | | Private Mortgage Loans, when set up properly, |
| the stock market, but the market takes them on | | | | can provide your portfolio with a great return in |
| a roller coaster ride that would be the envy of | | | | any real estate market. Up, down, flat...it doesn't |
| any amusement park. One day it's a 200 point | | | | really matter. |
| rise and setting a new record high on the Dow, | | | | The investment model is simple. You directly loan |
| then the next a 300 point tumble that takes six | | | | money, at a very low loan-to-value, against a |
| weeks to shake off. | | | | piece of real estate. The borrower is typically a |
| If you're like me, you have taken that ride more | | | | tried-and-true veteran landlord that has a portfolio |
| than once over the years. It's happened in a big | | | | of equity-rich properties and also is familiar with |
| way twice in the past decade alone! | | | | the ins-and-outs of finding tenants and managing |
| The series of highs and lows can leave you with a | | | | rental property. |
| feeling of hopelessness. How can you know if a | | | | Your return comes in the form of interest |
| company is cooking the books? How can you | | | | payments from your borrower and because you |
| predict if there will be another terrorist attack | | | | establish the loan terms together you can have |
| that will cripple our Country for months? Who has | | | | the payments come regularly or have them rolled |
| a crystal ball that can reveal when the next | | | | into the loan and paid out in one lump sum when |
| financial market meltdown will wash over us? | | | | the loan term is over. |
| Whenever these cycles hit personal fortunes are | | | | To provide you with the safety you want, your |
| wiped out in a blink of an eye. | | | | investment is secured by a first mortgage. As |
| You may be thinking, "So what else can I invest | | | | long as you follow common-sense lending |
| in?" | | | | practices then you can enjoy a level of |
| The answer is to invest in real estate...but maybe | | | | confidence in your investments that the stock |
| not in the way the first comes to mind. | | | | market cannot provide. |
| Real estate is an asset that you see and touch, is | | | | Private Mortgage Lending is a vehicle that can help |
| insured, and produces monthly income. Historically | | | | you quickly recover from harsh stock market |
| it is one of the safest investments available and | | | | losses. Using this approach you can realize returns |
| there are several ways to get started. Here's a | | | | greater than 10% and never get called to fix a |
| few: | | | | leaky pipe. Unfortunately, most investors aren't |
| 1) The "Speculator" Approach - you could become | | | | even aware this opportunity exists. |
| a real estate "speculator" and buy properties with | | | | Now that you've read this article, you can't claim |
| the hope that they will go up in value and allow | | | | ignorance as an excuse. Stop what you are doing |
| you to reap windfall profits when you sell. Of | | | | and start looking for someone who needs a |
| course, this type of approach has a large amount | | | | private mortgage with whom you can do business |
| of risk which has left large numbers of | | | | with. Find a landlord at your local real estate |
| speculators who were consumed with "Flipping | | | | investor association, hit a round of golf together, |
| Frenzy" over the last few years in a very tough | | | | and see if it makes sense to do business |
| place when the market turned and did not favor | | | | together. Then take action and make your first |
| their investment approach. | | | | investment. Start small if it makes you feel |
| 2) The Landlord Approach - on a more traditional | | | | better, but get started. |
| level, you could buy a home, duplex, or small | | | | Failure to take action puts you in jeopardy of |
| apartment building and rent the property out. | | | | letting it slide to the bottom of your to-do list. If |
| Over time as you collect rent your tenants will | | | | that happens, in a year you'll wonder why things |
| pay off your mortgage. This does take some | | | | have not changed for you financially. |
| time, work, and experience. This approach is | | | | |