It's important to establish a safe and dependable investment strategy if you're trying to build a nest egg that won't crack. But millions of Americans last year lost their savings through investments that looked safe. In some cases, people lost both their jobs and their pensions when companies failed.
So, is there a safe place to put your money? According to analysts, there is a safe place to put your money but you need to learn a few facts first.
Known to be a secure and tangible investment is real estate because it generally appreciates over time. A lot of would-be investors are not experts when it comes to real estates and they can't fix up a rundown house or purchase the investment property because they don't have enough money. But another strategy is available. It's called cash flow investing and it allows people to benefit from secure and profitable real estate investments without buying or selling properties.
Instead of between a buyer and a bank, real estate cash flow note is a private mortgage created between two individuals. One in 13 American homes is sold this way and this is something many people are not aware of. Similar to banks that buy previously created mortgages, private individuals can build returns of 20% or more by buying cash flow notes. Here's how it works:
For instance, I have a house which I sold for $100,000 and my buyer had $50,000 which he will use as a down payment. A contract taking $50,000 down is what I can draw and the remaining $50,000 can be financed over 30 years. I now have a cash flow note that generates monthly payments of $299.78 each month secured by real estate.
I have 2 options since I am a note holder. I can take advantage of the monthly income and interest, or I can sell the note to another investor for instant cash. This is where you, as an investor, come in to make money. Let's say you're an investor with $35,000 to invest. I don't want to wait 30 years for my money so for $35,000, I'll sell you my $50,000 cash flow note. Because the original note holder wants to cash out, many investors can buy notes at great prices. You're now in a position to make a 30% return on your investment even before interest and you're receiving a steady income of almost $300.
Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.
So, is there a safe place to put your money? According to analysts, there is a safe place to put your money but you need to learn a few facts first.
Known to be a secure and tangible investment is real estate because it generally appreciates over time. A lot of would-be investors are not experts when it comes to real estates and they can't fix up a rundown house or purchase the investment property because they don't have enough money. But another strategy is available. It's called cash flow investing and it allows people to benefit from secure and profitable real estate investments without buying or selling properties.
Instead of between a buyer and a bank, real estate cash flow note is a private mortgage created between two individuals. One in 13 American homes is sold this way and this is something many people are not aware of. Similar to banks that buy previously created mortgages, private individuals can build returns of 20% or more by buying cash flow notes. Here's how it works:
For instance, I have a house which I sold for $100,000 and my buyer had $50,000 which he will use as a down payment. A contract taking $50,000 down is what I can draw and the remaining $50,000 can be financed over 30 years. I now have a cash flow note that generates monthly payments of $299.78 each month secured by real estate.
I have 2 options since I am a note holder. I can take advantage of the monthly income and interest, or I can sell the note to another investor for instant cash. This is where you, as an investor, come in to make money. Let's say you're an investor with $35,000 to invest. I don't want to wait 30 years for my money so for $35,000, I'll sell you my $50,000 cash flow note. Because the original note holder wants to cash out, many investors can buy notes at great prices. You're now in a position to make a 30% return on your investment even before interest and you're receiving a steady income of almost $300.
Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.
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