It's important to establish a safe and dependable investment strategy if you are trying to build a nest egg that won't crack. But losing their life savings through investments which looked safe is what occurred to millions of Americans last year. When companies failed, there are instances where people not only lost their jobs, they lost their holdings as well.
What would be a safe place in which you can put your money? Analysts say yes, however it's important to understand a few facts first.
As an example, property has long been known as a secure, tangible investment since it generally appreciates over time. There are a whole lot of would-be investors that aren't experts on property and they don't have the money to finance the purchase of an investment property or repair up a rundown home. But another approach is available. It is called cash flow investing and it enables people to benefit from lucrative and secure real estate investments without buying or selling possessions.
To put it differently, a real estate cash flow note is a private mortgage created between two individuals instead of between a purchaser and a bank. One in 13 American houses can be bought this way and this is something a lot of individuals are unaware of. Comparable to banks that buy previously created mortgages, personal people can build returns of 20 percent or more by buying cash flow notes. Any thoughts how it works?
Let's say I purchased a house for $100,000 and also my buyer had $50,000 to use as a down payment. What I can do is draw up a contract carrying $50,000 down and finance the remaining $50,000 over 30 decades. What I now have is a cash flow note and each month, it would generate monthly payments of $299.78 secured by real estate.
As a note holder, I have two options. Either I sell the note to another investor for immediate money or I will take advantage of the monthly interest and income. This is where you, as an investor, come in to earn money. As an investor, let us say you are able to invest $35,000. I don't wish to wait for 30 years for my money so for $35,000, I'll offer you my $50,000 cash flow note. Buying notes at great prices is what many investors are able to do because the original note holder would like to cash out. You're currently in a position to generate a 30% return on your investment even before interest and you are receiving a continuous income of almost $300.
Best of all, unlike stocks and bonds, your cash flow notice investment is secured by real estate-one of their strongest investments on earth.
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