subject: Real Estate Can Be A Safe Alternative To The Stock Market [print this page] Weve all learned the importance of the security of your investment. Chances are you watched your 401k become a 201k during the lows of the stock market crash a few years back.
Real estate is a great alternative to the risk thats associated with stock market investing. With a real estate investment you have a real asset backing up your investment.
We of course know that our congress made a huge mistake by sticking its nose in where it didnt belong. It made banks take loans that were unsafe. This lead to the foreclosure nightmare a few years back.
At the same time, more people are trying to achieve the American dream of owning a home than ever.
These recent years have been the best time to invest in real estate. You can buy low and eventually sell high. The real estate market is more predictable and controllable.
In real estate, savvy investors continue to make a profit year after year. It doesn't take a rocket scientist to figure out the investment vehicle that provides more safety and predictability, as well as control, is real estate.
So think about investing in real estate loans. Remember that banks get into trouble because they make loans at 95, 100, even a 125 percent loan-to-value ratios. If this private loan were for the period of 60 months, you'd be paying interest only payments monthly, quarterly or at maturity.
For example, the return on the initial investment of $75,000 when paid at maturity would be $120,000. That's a difference of $45,000 in investment income profit. You will get a lien against the property. You're the bank.
