As we continue to face economic uncertainty, many investors find themselves keeping their money on the sidelines.
Low returns on investments, risk and instability in the stock market, and new bank failures on a weekly basis keep investors running scared. Many ask themselves, "How do you find a safe reliable way to invest your savings or your retirement, IRA and or 401(k) money?" Many find themselves suddenly downsized out of a job, being laid off, or being forced into a premature "retirement" only to find their retirement money has been almost exclusively invested in the very company that has failed to provide them the financial security once promised to them.
The good news for some is that as a result of their hard work and discipline over the years, they have amassed significant amounts of money that, if properly invested can help ease the pain or in some cases be enough of a nest-egg to create permanent financial stability.
How do you invest this money safely, wisely and yet at a high enough rate of return? Who do you trust to manage this money for you in such turbulent financial times?
The best answer is simple: Trust Yourself! One of the oldest forms of investing is direct investment in the way of private lending to to worthy commercial borrowers who know how to get a good return on your money but as a result of the banking turmoil in recent years have limited access to working capital.
Learning to make wise investments and to loan to worthy borrowers who will pay you back and give you a decent rate of return is not easy, but it is a fairly simple process that you can learn. The process is a recipe of thorough due diligence, building relationships with individual borrowers and having the courage to trust your gut instincts.
Before you run out to loan your hard earned cash to a would be borrower, here are 10 "how to
" topics you will want to research:
- How to determine the right amount of money to move into private lending
- How to FIND a borrower
- How to Qualify a Borrowers Character
- How to Qualify a Borrower's ability to pay
- How to ensure you have good collateral and a strong enough equity position
- How to properly rate overall risk and properly price your loan so that you get the best rate of return while still attracting worthy borrowers
- How to use tax deferred or "QUALIFIED" investments to make loans without losing your tax deferred status, and how to MAXIMIZE your investments by sheltering interest income from taxes
- How to ensure you have the proper documentation for the state you are lending money in
- How to take your collateral back in the rare case that you need to
- How to make sure your investments are SEC compliant
Trying to find the answers to ALL of these questions for a new lender can be like looking for a needle in a haystack, but Private Lending Advisors has created a system to address these and many other questions that can help you to use your own decision making abilities to make safe sound investments to worthy borrowers and get a far greater return than the traditional markets are offering.
In the upcoming weeks, we will outline our systems and provide information that will answer many of the above "how to" topics and much much more.
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Ralph D. Nudi