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Short term loans carry a higher risk as they are
usually made to real estate investors, who buy, fix up and resell
houses. They borrow the money to buy a property all cash to get the
best possible price.
They would then either fix it up and sell it or
just sell it if it were in good enough shape.
These loans are generally for a year or less and
pay interest rates as high as 12% or more!
Your loan amount on this type of deal would
usually be from $25,000-$250,000.
The long term, purchase money mortgages made to
homeowners, would have smaller returns, just below the rates the
banks are charging, because of the relative safety of the loan. Loan
amounts would be from about $50,000 to $500,000. You could invest
alone or in combination with those of other investors, forming your
own private IRA Bank!
As the real estate market worsens, the easy bank
mortgages will dry up, providing greater and greater demand for
these private loans.
Think of the possibilities! You can rejuvenate
your shriveled IRA, 401(k) or Keogh by stuffing it with secured, tax
free real estate profits!
You can run a small, classified ad in your local
paper or network with real estate agents and you’ll find clients.
In most states, you are allowed to make a small
number of loans, before you have to think about licensing, but check
the law in your state just to be safe.
Let your private, IRA Bank put you back on the
road to early retirement!
Copyright 2005 Bill Young. Bill is a former bank
mortgage officer. He is a real estate investor and personal
financial consultant. You can learn more about earning high
yielding, tax free returns secured by real estate in your IRA or
other retirement fund here:
http://irainvestorsexchange.com/ If
someone you know is facing the foreclosure of their home and they
want to save it,
http://savemyhomellc.com/ If they
need to get rid of it quickly,
http://wetakeoveryourpayments.com/
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Banks
Invest Your IRA Money in Home Mortgages, Shouldn't You?