Cure for Stock Market Blues
Tired of investments that go bump in the night?
The past 18 months have been anything but steady for traditional investments- those like stocks, mutual funds and bonds. In fact the S&P 500 earned only 5.5% last year and has already lost that and more so far this year. As a money manager for the past 22 years, I’ve used all sorts of traditional investments and techniques. But they all have one thing in common – they are dependent on a cooperative general market trend. So what’s a person to do when things get ugly.
Well the current sub-prime mortgage debacle has actually created an enormous opportunity for savvy investors. Most banks have drawn in their reigns which puts many, borrowers with good projects into never never land. What I’m leading up to is the concept of investing directing into secured real estate notes, just like a bank with an appraisal, title policy, servicing agent – the works. Except you get the interest and don’t’ have to support a bank lobby, tellers, ATM machines and stodgy management’s salaries.
How does it work? For more information check out my own blog. Most of the notes we fund have a loan to value of 70% and pay 14% monthly interest. Is there risk? Of course but very different from the stock market.
David H. Disraeli, CFP(r) david@lifpln.com
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