If you're trying to build a nest egg that won't crack, it's important to establish a safe and dependable investment strategy. But because of investments that looked safe, millions of Americans lost their life savings last year alone. There are cases in which people lost their jobs and as well as their pensions when companies failed.
Not you need to determine if there is a safe place to put your money. It's important to learn a few facts first even though analysts will tell you that there is a safe place to put your money.
An example is real estate being known as a secure and tangible investment because generally, it 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. However, there is another strategy. Cash flow investing is what this is called and this will allow people to benefit from secure and profitable real estate investments without having to buy or sell properties.
Put simply, a real estate cash flow note is a private mortgage created between two individuals instead of between a buyer and a bank. Many people are not aware of the fact that one in 13 American homes is sold this way. They are a lot like banks in which they buy previously created mortgages and to build returns of 20% or more, private individuals can buy cash flow notes. Keep reading to learn how it works:
What if you have sold a house for $100,000 and your buyer had $50,000 to use as a down payment? What you can do is draw up a contract that takes $50,000 down and the remaining $50,000 can be financed over 30 years. A cash flow note that generates monthly payments of $299.78 each month is what you now have and it's secured by real estate.
As a note holder, you have two options. Your first option is to take advantage of the monthly income and interest and the second is to sell the note to another investor for instant cash. In this case, the investor comes in to make money. For example, you have an investor with $35,000 to invest. Since waiting for 30 years for your money is not something you would want to do, you will sell the $50,000 cash flow note for $35,000. Because the original note holder wants to cash out, many investors find that they can buy notes at great prices. Not only are you receiving a steady monthly income of almost $300, but now, even before interest, you're in a position to make a 30% return on your interest.
Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.
Not you need to determine if there is a safe place to put your money. It's important to learn a few facts first even though analysts will tell you that there is a safe place to put your money.
An example is real estate being known as a secure and tangible investment because generally, it 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. However, there is another strategy. Cash flow investing is what this is called and this will allow people to benefit from secure and profitable real estate investments without having to buy or sell properties.
Put simply, a real estate cash flow note is a private mortgage created between two individuals instead of between a buyer and a bank. Many people are not aware of the fact that one in 13 American homes is sold this way. They are a lot like banks in which they buy previously created mortgages and to build returns of 20% or more, private individuals can buy cash flow notes. Keep reading to learn how it works:
What if you have sold a house for $100,000 and your buyer had $50,000 to use as a down payment? What you can do is draw up a contract that takes $50,000 down and the remaining $50,000 can be financed over 30 years. A cash flow note that generates monthly payments of $299.78 each month is what you now have and it's secured by real estate.
As a note holder, you have two options. Your first option is to take advantage of the monthly income and interest and the second is to sell the note to another investor for instant cash. In this case, the investor comes in to make money. For example, you have an investor with $35,000 to invest. Since waiting for 30 years for your money is not something you would want to do, you will sell the $50,000 cash flow note for $35,000. Because the original note holder wants to cash out, many investors find that they can buy notes at great prices. Not only are you receiving a steady monthly income of almost $300, but now, even before interest, you're in a position to make a 30% return on your interest.
Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.
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