Is Private Lending Right For You?

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private lending moneyMore and more pension plan, IRA, CD, Stock Market investors are opening their eyes to trust deed investing because it allows them to be in charge of their money. Being a private lender is a way for someone to move from being a passive investor, which allows your stock broker or pension plan manager decide where to put your money, to more of an active, “self directed” investor. This means you are the one directing where your money is being put to work.

Oh my gosh if I hear one more person tell me that they don’t even open their statements anymore because they can’t bare the truth, I swear – I’m going to cry! There are options for investors to take over the direction their various money and investment accounts are going! I know because I am in the middle of all it!

The following questions are what I seem to be answering the most to help people decide if they are ready to become a private lender and get into the wonderful world of private investing!

There are a few things to consider when you are thinking of becoming a Private Lender.

  1. If your money is in an IRA or Pension, is it “Self Directed”? If so, then you are all set to start directing where your money is to be invested. If not, it is a simple process to move your money into a self directed account.
  2. Speaking of IRA’s— has your IRA, Money Market or Pension made you a return that you are happy with? Trust Deed investing is secured by real property collateral. There is no chance that you will loose money investing with the right company (key word being the right company! Please I beg of you to do some serious homework here or get major references).
  3. Do you plan on retiring on your investments in the next 15 years or less? Will you be able to at the current return you are receiving?
  4. Is diversifying your portfolio important to you?
  5. Are you able to invest your funds for the time frame of 6 to 12 months?

These are a few of the common questions people need to ask themselves in order to decide if being a Private Investor is what they are looking for.

With the current conditions of the stock market, traditional bank lending and the economy in general, it is hard pressed for regular people to earn a substantial rate of return on their investments.

The quote that I say over and over these days sums it all up:
“When there is Blood on the Streets… buy Real Estate”
Being a Private Lender is the perfect way to do so—without all the headaches of dealing with the property itself!

Photo Credit: emdot