If building a nest egg that won't crack is what you're trying to build, then establishing a safe and dependable investment strategy is important. But losing their life savings through investments that looked safe is what happened to millions of Americans last year. When companies failed, there are cases where people not only lost their jobs, they lost their pensions as well.
What would be a safe place in which you can put your money? Analysts say that there is someplace safe you can put your money but first, you need to learn a few facts.
For instance, real estate has long been known as a secure, tangible investment because it generally appreciates over time. But most would-be investors are not real estate experts, and many of us don't have enough money to fund the purchase of an investment property-let alone to fix up a run-down home. You can opt for another strategy. Even without buying or selling properties, people can benefit from secure and profitable real estate investments thanks to cash flow investing.
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.
One of the most solid investments in the world is real estate and your cash flow note investment is secured by this, unlike stocks and bonds.
What would be a safe place in which you can put your money? Analysts say that there is someplace safe you can put your money but first, you need to learn a few facts.
For instance, real estate has long been known as a secure, tangible investment because it generally appreciates over time. But most would-be investors are not real estate experts, and many of us don't have enough money to fund the purchase of an investment property-let alone to fix up a run-down home. You can opt for another strategy. Even without buying or selling properties, people can benefit from secure and profitable real estate investments thanks to cash flow investing.
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.
One of the most solid investments in the world is real estate and your cash flow note investment is secured by this, unlike stocks and bonds.
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