that will Double or Even Triple What You Earn on a CD or Savings Account
Have you received this book?
"Taking Control:
Getting Wall Street Out of Your Wallet
and Earn as Much as 12% on Your Savings, CD, Equity or IRA"
written by Angela Phebus
then please CLICK HERE to order your copy!
This book can help more fully explain this opportunity and ensure that you have ample information; within this book, it will also reference other books and web reference material that will help you gather answers to all your questions!
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If you're ready to learn more, CLICK HERE to receive your coupon for a
FREE half-hour no obligation consultation regarding passive real estate investing.
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The Q&A below provides a general overview of private mortgage investing
(also known as becoming a "passive partner").
Remember to take advantage of your free no obligation consultation!
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Q: How does passive real estate investing work?
A: There are many different avenues you can take (and if you're interested in learning more about all of them, stop in at a meeting at your local real estate investing club where you can learn more from others in the business). The approach we use is partnering with a private mortgage investor. This means we buy investment property but instead of using a traditional bank to fund the purchase, we partner with "passive partners" who act as the bank and fund the purchase. They receive a fixed rate of return on their funds which is typically two to three times higher than what they would get by placing their funds in a Certificate of Deposit.
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Q: Can you help me understand a little more?
A: Sure. In the simplest terms, it means that you decide to become the bank. You hold a mortgage note on the property, receive the same protections as the bank but you receive a higher interest rate than someone might pay a bank on a mortgage.
Here's a quick picture that will help...
Q: Is this common? I've never heard of it before.
A: Its extremely common and happens all the time. Most large investors never step inside a traditional bank to get funding; they work with other investors because it's a real win/win for both people.
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Q: How is this a win/win for both investors?
A: The investor buying the house has one big priority...speed. We see great bargains all the time and need to know we can close quickly and easily in order to increase our "bargaining power" when we make the offer to the seller of the property. Many times, we can make an offer to buy the property that is much lower than market price because we can guarantee the seller that we have funding...because we know our "passive partners" will fund the transaction.
You, as the "passive partner", benefit because you get a much higher rate of return than he could at the bank in a CD, savings account or in a traditional IRA fund...usually two to three times higher. You also holds the mortgage on the house so if you're ever not paid as agreed, you get ownership the collateral (the house). You're also protected with fire/hazard insurance showing you as the lienholder and are protected with title insurance (you don't pay for any of these things, we do).
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Q: What kind of past real estate or past investing experience should I have if I'm considering this?
A: Many people who get involved in passive real estate investing have already been involved in real estate (usually as a landlord) and are tired of dealing with tenants, leaky plumbing, late night phone calls, vacant houses, etc. Passive investing opportunites allow them to stay in the real estate industry but eliminate all those hassles. Other passive investors have no real estate background but are excited about the security of the investment and the higher rate of return. You don't have to have real estate background (after all, we own stock in United Airlines but we don't know how to fly a plane). We'd suggest however that you research this investment just as you would any other. You may want to consider attending a seminar, reading some books on the topic, researching through the Internet and speaking to an advisor. At the bottom of the page, I've listed some reference material you can look into if you like.
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Q: Someone told me I could invest using my IRA. Is that true?
A: Yes, the IRS allows you to participate in a self-directed IRA. You simply have to choose a custodian for your IRA that provides that service. At Monterey Properties LLC we personally use Equity Trust Company (based in Ohio) but there are others available. You can get more information about them and their products at www.TrustETC.com.
By the way, if you have questions about the IRS ruling on this, you can also verify this information at the IRS website:
http://www.irs.gov/retirement/article/0,,id=111413,00.html#14
Here's the listing of "restricted" items -- you cannot use your IRA to invest in these items (this is directly from the IRS website)
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Q: I have more questions. How can I get them answered?
A: Your local real estate investing club offer free seminars that teach a variety of topics and passive investing is one of them. Check their site for upcoming seminars where you can learn from te course instructors as well as meet with others who are already involved in passive investing. Of course, you can always call our office and ask for either Doug or Angela and we can answer your questions as well.
REFERENCE MATERIAL
Both of these books are available for sale through Amazon.com or at a major bookstore.
This site does not constitute an offer to purchase mortgage investments, it is meant as an educational resource only. Investing in mortgage investments involves risk. Please be sure to do all necessary due diligence prior to investing.
