Want to find safe high return investments in Downers Grove?

Many investors in today's uncertain economy are longing for investments that provide security and safety while also offering high rates of return. One of the best investments that offers both of these benefits is real estate lending.

As a private money lender for real estate, an investor can earn a substantially higher than average return on their investment while maintaining relative safety of capital by having the investment secured by real estate.

In the event of a default, the real estate can be sold to pay back the loan or recover the investment. The key here is to have real estate that can be sold for at least enough to generate a return of the initial capital invested.

Safe High Return Investments Chicago Information

Become A Private Money Lender

If you're not earning the return you want on your investment dollars, your money isn't working hard enough for you.
Private Money Lending programs can help to fill the gap between investments that are secure but pay relatively low returns and those that pay significantly higher returns.

These higher returns are possible through private money lending and real estate investments.

Be A Smart Private Money Lender

As a private money lender, you want to never lend more than 75% LTV. It is in the private money lender's best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. Don't violate this rule, because the security of your investment capital is at stake.

Conclusion

So, you can see that private money lending has the potential to be profitable and safe if it is done carefully and correctly. Be sure that you maintain the correct LTV when you loan money secured by real estate to ensure that the value is there to cover the return of your investment in the event of default.

RETIREMENT

Most of us want to make sure our investments are going to help pave the way to a comfortable retirement.  The government encourages retirement investing by allowing, among other things, the Individual Retirement Account, or “IRA.”  Let’s talk about IRAs…

Wall Street’s Biggest Lie…

The big investment firms on Wall Street tout the benefits of investing through an IRA.  And they’re right:  IRAs can be great vehicles, given their tax-favored status.  However, the biggest lie on Wall Street is the “Self-Directed IRA.”  They should call it, “The IRA Where WE Dictate What You Can Put In It, Because We Know Better!”

Sheesh!  What a joke!

Sure, there are some investments that the government will not allow in your IRA, but there are a whole group of investments that the government is just fine with you putting in your IRA…but the fee-hungry investment firms don’t want you to know about these!

Why?  Because they don’t get their fat fees if you invest in those types of investments.

Here’s the truth…

You CAN invest in real estate through an IRA…but probably not through the one you already have.  That’s because if you set up your IRA through one of the major Wall Street firms, or your typical bank, you were probably sold a bill of goods that real estate was “not suitable”.

That’s what they want you to believe, so you’ll stop asking questions.

Did you know you can invest in the following type of real estate through a truly “self-directed” IRA:

·         Raw Land

·         Single Family Homes

·         Apartments

·         Mobile Homes

·         Commercial Property

·         Real Estate Notes

·         Mortgages

·         Tax Liens

By the way, you can invest for retirement and not put the investment in an IRA or any other type of tax-deferred vehicle.  You simply invest with after-tax dollars.

Remember, we’re not your attorney or tax advisor.  We suggest that you check with them about any investment you’re thinking about making.

Investing With Your IRA

One of the best places to get seed capital to become a private lender is the low-interest earning money currently in your IRA.  One of the great things that I have discovered is that there are so many legal ways to make money with this capital, especially by using your IRA to own and control both real estate and paper. 

Having said all of that, take a look below at all of the investments available to anyone who has a truly self-directed IRA or 401K plan:

• Residential real estate—including apartments, single family homes, and duplexes
• Commercial real estate
• Undeveloped or raw land
• Real estate notes (mortgages and deeds of trusts)
• Promissory notes
• Private limited partnerships, limited liability companies, and C corporations
• Tax lien certificates
• Foreign currencies
• Oil and gas investments
• Publicly traded stocks, bonds, mutual
• Private stock offerings, private placements
• Judgments/structured settlements
• Gold bullion
• Car paper
• Factoring investments
• Accounts receivable
• Equipment leasing

Now frankly, I don’t suggest that you start investing in foreign currencies or oil and gas investments unless you know a lot about them.  On the other hand, I am highly vested in both real estate and notes with the natural outcome of passing this information on to you.  Let’s look first at the Real Estate IRA…

Real Estate IRA

There are three things that you should know about a real estate IRA:

1.      The term "real estate IRA" encompasses any type of real estate investment in a self-directed IRA or 401(k).

2.      When you combine the advantages of a self-directed IRA with your knowledge of real estate, IRAs allow you to earn tax-free/tax-deferred returns on your investments.

3.      The rate of return on your investments is based on your knowledge and expertise in real estate. IRA investing is not based on the ups and downs of the stock market.