The Golden Goose Must Never Die: Sunday Morning Thoughts 24 March 2013

1 in 3 Americans cannot retire comfortably.  With that in consideration, when you retire you no longer have the same income as when you worked, so saving for your retirement is crucial while you are still working.  But, once you retire, you no longer have an earned income.  You will be living off of your investments, and if you are not adding to your investments while living on the investments then you are hoping to not out live your money.

Most people out live their money, and if you do a reverse mortgage you may out live that as well.

So what can you do to protect your retirement future?

The simple answer, the goose must never die.

So how do you live off of what you set aside for the future and still increase or at the least replenish your investment.

One way is to become a private lender and live off of the interest payments you receive.  This way you still have a retirement investment which will still grow, and wantfully you will not outlive.

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Backing the American Dream: Sunday Morning Thoughts 23 December 2012

As a private lender of mortgage notes, one can find a way to make the American Dream of Home Ownership a reality once again. 

The banks are still having tight credit restrictions, and good people with good credit are finding it hard to get a purchase loan whether first time buyer or second purchase.  Although on the flip side of the coin, at present, refinance and reverse mortgages are a booming industry for the banks; which makes this a lucrative time for small lenders and lender groups to capitalize on a much-needed product, single family purchase loans.  There are considerations to make such as usury laws, which are the interest rates a lender can charge.  The average institutional bank interest rate for a 30 year mortgage is 3.125% and for 15 year loan the rate is 2.75%.

When considering lending to consumers and investors, usury laws prohibit going above a set limit for some states.  In general, the set limit for most states is 10% for other states the limit is a little less at 8%.

Many hard money lenders are within the guidelines of lending but they are navigating in tricky waters.

With real estate showing signs of a slow recovery in many areas, and institutional lenders implementing tougher credit restrictions, the time for private lending is now.

So, where do you find qualified borrowers?

Believe it or not, people who had the interest only loan and lost their homes after the loan reset.  Many of the families with the interest only loan were banking on being able to refinance the loan into more reasonable payments than the reset payments.  But the problem, a story we all familiar with by now, the value of homes had dropped drastically in most areas, and most home owners were faced with one added dilemma, being upside down on their mortgages.

Under water mortgages, loan resets, and the added frustration of denied loan modifications only has made private lending necessary and lucrative for a real estate recovery.  Getting involved is easy, fill out the form at the bottom of this article for more information on becoming a private lender.

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Senior Investing: Sunday Morning Thoughts 13 June 2010

How Seniors can use Their Home for Investing

With the downs and up swings of the DOW many investors are having increased leeriness of investing in the stock market. With the recent Goldman Sachs issues one would find it difficult to feel fairly comfortable investing in the DOW. Let’s face it; if you do not have a knowledgeable stock broker acting for your benefit, and you are not Warren Buffet should you really invest in the stock market?

Well, as we have all seen in the past few months and weeks the stock market has it’s good days as well as it’s horrifying ones. No matter your age, no one really has money to loose in the stock market, seniors especially. For a retired senior having earned income is not necessarily an option.

Most seniors live on the investments made from when they were younger, pensions, and/or social security. Seniors are the group that may not be able to make up for the recent losses in the stock market. With that in mind what are some ways to create a nest egg without having to reenter the work force?

Many would tell seniors who own their home to do a reverse mortgage, others would tell them to sell their home and downsize to something smaller such as a condo in a senior community.

A reverse mortgage works when you do not have heirs or the residence will not benefit your heirs. But, keep in mind the bank is not offering you the total value of your home; it will be a considerable amount less.

If you are a senior and you decide to sell your home and live in a condo community, you may miss your home. Home for many has the memories of family, friends, and life’s accomplishments, although you will make new memories and new friends in a condo community.

In today’s investing world looking at things slightly differently may make a big difference. But, remember all investments have risks. What if you use a home equity line of credit to make investments?

Your home serves as collateral for the line of credit. The amount of the credit will depend on any outstanding mortgages on your home. For most seniors the home is free of any outstanding mortgages, you stand a better chance at receiving a home equity line of credit. In general the banks look at ability to repay, your debts, etc. Each lender is different so if you consider a home equity line of credit, shop around for the best rates and lenders that will not charge a multitude of fees.

Once you have decided between home equity line of credit, reverse mortgage, or second mortgage then you will need to place that money into an investment that will give you a better return than the money you are borrowing.

When investing please consider investing in real estate with Immaculate Enterprises. Lenders are paid eight percent to twelve percent on their money. When investing you may opt for quarterly payments or you may choose to wait till the real estate venture is sold.

The better profit is when you wait till the venture is sold but some private lenders choose to have quarterly payments. Either way it will be the choice of the lender.