Archive for October, 2009

Returns that are "too good" to be true…

Wednesday, October 21st, 2009

red arrow small1 Returns that are "too good" to be true...I network with a lot of other private money brokers in the Bay Area.  We see each other at various seminars and lender conferences.  I like to compare notes and talk about our growing industry.  Most of us agree that much of the public remains unaware of trust deed investing, even though a lot of us are advertising in the newspapers.  One of the most common reactions from prospective investor-clients is that the returns we advertise sound “too good to be true”.  In fact, many of my colleagues have lowered the rates they advertise because too many people equate double-digit returns with high risk!

The fact is that savvy investors have been enjoying double-digit returns on their savings for years through trust deed investing.  There’s no magic to it, and it’s easy to become familiar with the fundamentals. Like everything nowadays, the information is out there on the internet, and many websites offer articles teaching the ABC’s of trust deed investing.  Is it risky?  If done properly, the risks are highly manageable.  It’s certainly not as “risky”, in my opinion, as investing in the stock market.

Trust deed-secured notes offer high monthly income on your savings.  You can use your trust or self-directed IRA to invest for tax-free or tax-deferred growth.  You choose the note that’s right for you.  It’s not unusual for an investor to choose loans only in certain neighborhoods or on certain types of property.  You have access to all the information we have on the applicant.  Everything is transparent.

My associate and I are currently preparing a series of seminars we will host throughout the Bay Area to talk about trust deed investing.  Let me know if you’d like to be on our mailing list.

Taking the Road Less Traveled

Friday, October 9th, 2009

Road-less-traveled1Sometimes, taking the road less traveled can truly make a difference, especially when it comes to investing for retirement.  You might ask yourself, “should I continue to invest in stocks and mutual funds in this uncertain market, or are there alternatives that can help me to better achieve my goals?”

Despite unimpressive overall stock market returns over the last ten years, stock market advice abounds.  When was the last time you heard a financial guru talk about alternative investment strategies for income or asset growth? I listen to a lot of talk radio, and I rarely hear mention of investing in real estate trust deeds and mortgages, yet these remain among the most powerful tools for securing high monthly income and double-digit yields.

Today I heard a nationally-syndicated talk show host tell a 40-year old listener that he should have 60% of his savings in the stock market.  Really? To me, that seems to be good advice only if you plan to retire broke or die early.  In my opinion, investing in securities is playing Russian roulette with your savings.   Why would you do that?

Investing in a note secured by a deed of trust offers better security and true transparency, neither of which you’ll find in stocks.  Are there risks? Of course!  But those risks are manageable and quantifiable.  Investigate for yourself the opportunities to earn anywhere from 8% to 12% annual fixed yields on your savings.  Whether you invest through me or through any number of local, trustworthy private loan originators, you owe it to yourself to learn the facts.