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Whenever you make an investment, you are either an "owner" or a "loaner". It’s nice to be an owner of something that’s growing, because if you own, say, a 50% share in a business, you get to own 50% of an asset that’s getting bigger. The bad news is if the asset shrinks to little or nothing, you now own 50% of little or nothing.
That’s why many investors prefer to be "loaners". They like the feeling that their investment will be paid back at the end, plus they’ll receive interest on the investment. The U.S. banking system--the envy of the world--is built on making just such loans on real estate.
Although there are many ways to invest as an owner in real estate (just contact us here if you are interested in learning more!), this website is focused on describing how you can make profitable loans, secured by specific pieces of property.
"I see daily values in the newspaper for other investments like CDs; why can’t you quote me daily values, too?"
When banks make mortgage loans, they don’t get new information daily on the loan, and neither will you as a real estate lender. Lenders fortunately avoid all that daily anguish about what their investment value is. They know they are getting interest, and it’s secured by the real estate.
"What if I can get a higher return elsewhere?"
What are your investment goals? If it’s to get the absolutely highest return, period, then you are going to take some serious risk. You can "play the ponies" and hope to score big; you can invest in stock options and most likely lose your shirt; or you can get a solid return for decent risk. It’s the latter type of investment that we talk about on this website.
"What exactly will my rate of return be?"
We can’t quote you a rate of return, because it depends on the particular property you make a loan on. It would be the same as asking "What will the price of a house be?"
Just as a very rough guide, though, you can expect private loans on real estate to be in the range of 10-12% interest per year. Some might be lower or higher.
Click here to let us know that you are interested in finding out more about the real estate loan opportunities we have available. We’ll be happy to give you a much more specific idea of interest rates you can expect.
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