Some people are uncomfortable with the concept of risking their hard-earned money by putting it into an investment because it makes them feel vulnerable. Since they did not want to face the danger of losing their money, they have placed their cash reserves in a bank account with a low return on their investment for the most of their lives. They have also continued to save a percentage of their income every month.
People who are about to retire or who have recently been granted access to their retirement assets should be aware that every asset, including cash, carries a risk of profit or loss, and that no asset is completely risk-free (inflation).
Stocks, bonds, and real estate are all high-yielding asset classes that can provide a significant return on investment. However, just because you are taking a bigger risk does not imply that you will lose your money. However, failing to invest money and holding it in accounts that yield a low rate of return can pose a greater danger in terms of future purchasing power than investing it.
For example, suppose a retiree has $1,000,000 when he or she starts their retirement and keeps it in a cash account until they are 65 years old. Assuming this person is now 85 years old, the property that they might have purchased for $1,000,000 in 1994 would now cost them $1,750,000 in 2014. In terms of purchasing power, that individual experienced a 40% reduction in their money. Because of inflation, this is equivalent to having only $600,000 left out of a $1,000,000 pot of money. If you'd want to do the math with various numbers, you can use this as a starting point for your own example.
Taking a greater risk does not necessarily imply that you will lose all of your money, or even any of it; it could simply imply that your return will be smaller than anticipated, which, when compared to receiving a tiny return or none at all, is still the preferable option. Because of this, it is essential to broaden your investment knowledge base and become familiar with the various types of investments available, such as real estate trust deed investing.
WERE YOU AWARENESS that you could invest your money in real estate without having to manage your property, know much about real estate, or take on a significant amount of risk? Some examples include investing in real estate investment trusts (REITs), which are companies that sell units to unit holders (another word for stockholders) or bonds backed by the portfolio of real estate properties owned by the company. Another option is to become a private mortgage lender through the use of a broker who will locate a secure property against which to place your money, a process known as trust deed investment.
First, let me give you an example of why trust deed investing is safe and how investing in this asset class will put you in a better position in the future, and then I'll show you how the statistics work out for you.
What makes it so safe?
1. All of these properties are covered by insurance.
2. If your interest is not paid back, you will become the owner of the property's mortgage and will be able to sell the property to recover your money and the interest you were promised.
3. You are giving your money to a seasoned professional rehabber or real estate investor who, for the vast majority of the time, has his own money involved in the property as well as yours.
4. The investment period is comparable to that of a CD, ranging from 6 months to 2 years with rates ranging from 5-7 percent return on investment.
5. You have a real estate broker who is examining these homes on a professional level for your consideration.
6. You may see the property, go on a tour of it, and get a sense of what you're getting yourself into.
Although you could learn how to provide these loans on your own, it is far more useful to go through a broker because you run the risk of lending to the wrong individual, who brokers have screened through over time and have a better understanding of their needs. It's not that you won't be able to recover your money after going through the legal process, which brokers are well-versed in, but rather that you want to collect your monthly return as specified in the contract.
You should consider Saint Investment Group when you're ready to begin investing in trust deed funds. We are a trust deed investment firm with outstanding returns that are backed by our track record and our advanced portfolio of underlying assets. To discover more about creating steady, high returns and passive income on your hard-earned wealth, give our team a call right now.
🎧 Podcast: https://pod.co/podcastlive/what-is-trust-deed-investing
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