Louisville Medicine Volume 66, Issue 2 - Page 4

What do Banks Know About Investing? . . . Plenty! Banks have long known the value of investments backed by real estate. They have built their wealth by focusing on solid long-term, fixed returns that real estate mortgages offer: 1. Security from the intrinsic value of real estate. 2. Profitability by investing in the basic human need for shelter. 3. Predictability of returns afforded by mortgages. This is why the biggest buildings in town belong to the banks. You can put yourself in the position of the bank by directing your investment capital, including retirement funds, to well secured real estate mortgages. This is nothing new. Wealthy individuals like Sam Zell and Mitt Romney have been doing this for years and growing their retirement accounts tax free. This is called private lending, and generally, these loans are made to real estate investors. The interest rate is normally about 8% which is higher than bank rates. In addition to the advantages mortgages afford banks, private lending mortgages give the individual investor: Control YOU have complete control of your money. You get control to whom you lend money based on criteria as the real estate investor’s experience and how comfortable you feel about them. You get to control on which property you want to make the mortgage; the main criteria being the loan to value ratio. This should never exceed 75%, unlike the higher loan to value (80-95%) loans the banks made a few years ago which got them into trouble. With a fixed interest rate and fixed length of the mortgage, you have control of the return on your investment with minimal time managing your portfolio. There are No fees or commissions. All of your investment capital produces income. No wonder your broker, banker or financial planner has not told you about private lending. There is no way for them to make money from your investment. There is more information like 1. The five must have documents to secure your investment and the proper. 2. How do I get my money to the investor 3. How do I get the mortgage payments 4. What happens if the investor stops making payments All this information and more is in our 25 page FREE REPORT CALL 690-7416