Benefits of Investing in Private Mortgage Lending


Published on

For safe real estate mortgage investment tips please visit:

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Benefits of Investing in Private Mortgage Lending

  1. 1. ==== ====For more tips on Safe Mortgage Investing go ====In the world of investments you have a wide spectrum of choices to make. On one end of thespectrum are the high return and high risk investments such as stocks, mutual funds andcommodities. On the other end are the low return safe investments. Such investments as savingsaccounts and certificate of deposits would be considered low return and low risk investments.Ideally we would like our investments to have high returns with low risk but we do not have thatoption available to us. If we want one thing such as high return we have to give up another thinglike safety. However there is one little known investment that can give you the best of both worldswithout sacrificing either returns or safety. That investment is private mortgage lending.What is private mortgage lending? Private mortgage lending is similar to a bank mortgage loanexcept that in private mortgage lending an individual is making the loan instead of an institution.Instead of the bank profiting from the loan, the individual making the loan can earn superiorreturns without giving up the safety of their investment.Private mortgage lending beats the returns of traditional investments such as stocks andcertificates of deposits easily. In private mortgage lending you can expect double digit returnsbetween 10-16% based upon criteria which you set. The return you get on stocks can vary widelyand you may lose much of your principal or all of it. Savings accounts and certificate of depositswill only earn you 2-3% and that may not even keep up with the rate of inflation in many years.The returns on many investments such as stocks or mutual funds are unknown but you can counton getting the return you expect when you make a private mortgage investment.The best thing about private mortgage lending is that the high returns do not come at the expenseof safety. Your investment is secured by collateral, the actual property. Typically you will not loanmore that 65% of the value of the property. For example if the property you are lending on isvalued at $100,000 you will only loan the buyer $65,000. Even if the property were to decline invalue by 20% to $80,000 you still have more than adequate collateral to secure your investment. Ifthe value of your stocks decline by 20% your only option is to sell at a loss or hold on to the stockfor however long it takes to recover. That may take many years and you may only break even onyour investment at best. In private mortgage lending you have control over the risks and protectionof your investment that you do not have with any other traditional investment.Private mortgage lending is an ideal alternative for money currently in IRAs, certificate of deposits,or savings account that are earning a very low rate of return. If you could find an investment thatroutinely produce double digit returns without any more risk than traditional investments such asstocks or mutual funds, would you place your money in that investment vehicle? Anyone would ifthey knew of such an investment. Fortunately one does exist and it is called private mortgagelending. By investing in private mortgage lending you could substantially increase your cash flow
  2. 2. as well as your net worth by the time you retire. Private mortgage lending almost sounds too goodto be true but many people are earning impressive returns by "being the bank" and taking controlof their investments.Allen Young is an experienced real estate investor, developer and the co-author of "Tenant inCommon Investing:The Uncommon Path to Massive Wealth." To find out more about thisprofitable real estate investing technique go to http://www.ticprofits.comArticle Source: ====For more tips on Safe Mortgage Investing go ====