Good Returns In This Economy?

What is one to do today to get a fair return on their money? As of today, a one year CD is paying 2.09%. A five year CD is paying 3.12%. The average money market fund is paying 1.34%. It almost doesn’t seem worth investing.

The stock market has had a very sizable recovery since the Dow Jones Industrial Average dropped to just over 6,500 few months back. It closed at 8,763.13 on Friday, a gain of about 34%. That rate of return is certainly not sustainable. Besides which, many pundits are at a minimum expecting a pullback. Whether or not the stock market moves higher or lower from here, we have recently learned just how volatile the market can be.

So what is one to do? Is there an investment that will give you the returns that you want and yet give you the safety you desire?

I say there is. Become a private lender. What is a private lender? A private lender is person who individually or in their retirement account lends money against the equity in a property. It is a safe, secure investment. I know you have questions. Among other things, you are wondering if it is so safe, why are the banks in the financial trouble they are in today.

Let me answer those questions for you. Write me at marty@landpartners.biz for my free report “Private Lending Program”. You may also visit our website at and tell us about you.

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Why Not Be The Bank?

Have you given any thought to how banks make money?  It really isn’t rocket science.  It is actually pretty easy to understand.   We all know that banks charge fees for services.  Each bank has things that they do for free and other things that they do for a fee.  As consumers we call these nuisance charges.  They don’t really put a lot of money in the banks’ coffers but they do offset some of their operational costs.

Where banks really make money is through the use of our money.  They entice us to bring them our money and they lend it to others.  They engage in interbank transactions and they lend money to us.  Naturally, they lend the money at rates higher than what they pay us on our deposits.  The “spread” is their profit.

The banks lend money to us for personal or consumer loans and they lend us money for mortgages.  It is this mortgage lending that provides a vast, safe opportunity to you.  How you say?  Let’s take a look at this.

You go to the bank and make a deposit.  The bank pays you a rate of return.  Currently, depending on where you place this deposit, the rate perhaps could be from 2% to 5%.  The bank then turns around and lends that money, perhaps combined with other depositors’ money to someone to buy real estate.  Perhaps this is for a home or perhaps for commercial real estate.  They lend this money money for let’s say 6% or 6 1/2% in today’s market.  That would mean that they would make the difference (spread) on each dollar they lend.  In this example that would be anywhere from 1% to 4 1/2% on each dollar loaned.

So how do you take advantage of this?  What if you became the mortgage lender?  What if you could lend your money at 7% or 8% safely?  You can.  And what’s more, you can do so more safely than the banks.  You just need to know how to do so.  You need to understand what makes a safe investment.  We’ll go into this in future blogs.  But for now visit my website at http://landpartners.biz

Investment Idea for Today

The investment arena may seem like a very scary place today. You could be among the millions of people both in the U.S. and around the world that have lost sizeable amounts of money in the stock market. You may have money parked in CDs, money market or mutual funds earning 2%, 3% or perhaps 5%. Maybe you are so scared that you are just holding your cash or have it sitting in a bank to be certain that it is safe. I don’t think anyone would blame you for your caution or just plain fear.

The volatility still exists in the stock market. Interest rates continue at historically low levels giving you basically no returns on your CDs, bank accounts and other short term investments. What is someone to do that is safe and yet can offer a good return?

The real estate market has been in a free fall and continues under pressure in many areas of the country. The banks having made ridiculous loans for the last several years are now sitting on the sidelines and lending to very few select individuals, under very strict guidelines. Real estate prices are at their lowest levels in years.
An opportunity exists to fill the void left by the banks.

There are safe ways that you as an individual, using personal or retirement funds, can get above average returns on your money secured by real estate. The best part is you don’t have to have very large sums of money to participate. You owe it to yourself to give it a thought.

http://landpartners.biz