Posted by Literary Titan
Private Money Lending is a comprehensive book that details the different ways someone could make money from their investment in private money lending. What were some key ideas you wanted to pursue in this book?
Every investor should know that learning to generate a consistent, substantial, and predictable passive income stream sufficient to cover your total monthly expenses is the ultimate goal for anyone who wants to retire early. In fact, creating a safe and consistent passive income stream is considered the ” Holy Grail” of personal finance.
My objective in writing this book was to present to potential readers the existence of a little-known but crucial area of investing. This area of investing is private mortgage investing. What makes this investment vehicle safe is the fact that the investment is guaranteed by a tangible asset, brick, and mortar, such as a house or a commercial building.
Under a worth case scenario, a real estate tangible asset will always retain a certain amount of value, which it’s something that can’t be said for stock market correlated investments that can simply evaporate overnight based on bad news. Therefore, the important aspect of investing in private mortgages is that it is a non-correlated market investment that works under all market condition.
Private Money Lending is the only book on this topic that is based on a university-level qualitative research study. The study demonstrated the power that private mortgage investing has in generating a safe, substantial, and consistent passive cash flow under any market condition. This investment can generate a 9%-12% return on investment (ROI) safely in addition to providing all the legal protections a first mortgage provides banks.
Typically, investors learn about this investment vehicle by happenstance; that is, by knowing someone who is a private lender and understands all the nuances of this type of investment and who is willing to teach someone else the concept. Private mortgage investing is an especially useful investment vehicle in low-interest rate environments, such as the current market we have been experiencing for the past 12 years, where you can only receive 2%-2.5% for a 1-2 years CD and 3% for a 5-10 years CD. These low-interest rate environments are always devastating for the retired or soon to be retired individuals living on a fixed income. There needs to be a safe alternative, and private mortgage investing meets this requisite.
I believe that with the use of the book Private Money Lending: Learn How to Consistently Generate a Passive Income Stream as a guide any potential investor will no longer have to learn about this investment vehicle by happenstance.
What is your experience in this field and how has that helped you write this book?
I learned about private mortgage investing by happenstance like most people back in 1992. Thus, since 1992 (27 years) I’ve been safely investing in private mortgages, specifically in commercial and residential non-owner-occupied properties. As a result of learning about this investment vehicle, I no longer invest in the stock market because I can safely and consistently generate double-digit returns with a higher degree of safety.
There are many different investment opportunities out there, why did you want to write about private money lending?
I wanted to write about private money lending with an emphasis on private mortgages because I believe this is an investment vehicle that can generate the necessary cash flow to sustain a comfortable retirement with much less volatility and risk than with stock market correlated investments.
Yes, there are many different investment opportunities in the market, however, the majority carry too much risk. At least for my taste. The approach I use in this book was to first describe the advantages and disadvantages of the majority of available market investments before making the case of why I consider private mortgage lending a superior investment vehicle.
If you are an investor searching for a safer way to invest you should ask yourself three questions:
- Would you like to generate a passive and meaningful income stream in all market conditions?
- Would you like to generate this income stream consistently?
- Would you like an alternative with less risk than investments subjected to the volatility of the stock market?
If your answer to at least one of the three questions is “yes,” then reading this book will not be a waste of time or financial resources for you. In fact, learning about this investment strategy will change your financial life for the better.
What are some common mistakes investors make when they first start?
For investors entering this industry, the most common mistake is not possessing the necessary education to be safe.
It is important to learn how to perform the necessary due diligence regarding the loans that you will be considering.
It is also important to physically inspect the quality and location of the properties under-consideration to ensure a safe loan. Investors should never make any loan simply because of the high returns they can garner.
- This book is an important and timely research study that explores a little-known area of investing, which is that of private mortgage lending. The reason for undertaking the study was twofold; reason one is because, for the past 15 years, retirement portfolios had been devastated by stock market fluctuations, resulting from a greater prevalence of boom and bust economic cycles. It is quite possible that currently, another bust cycle might be unfolding, in spite of the Trump apparent bull market.
- The second reason is that of the adopted Federal Reserve policy of creating an artificially low-interest rate environment in an attempt to sustain the continued growth of the stock market and support of the current real estate recovery efforts.
- These two economic conditions primarily affect income investors because of the low yields being offered by the customary available fixed-income investments, such as bonds, CD’s, savings, and money market accounts (MMA). The combination of a reduced interest rate environment and increase stock market volatility has dramatically impacted the livelihood of the fixed income investor. Moreover, it has forced these investors to take greater levels of investment risk by incentivizing them to seek higher yields by investing in the stock market; in essence, the place that has created most of their financial problems.
Posted in Interviews
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Posted by Literary Titan
The Crooked Boundary is an intriguing story that slowly builds a crooked moral line between right and wrong. What was your inspiration for the setup of the story and how did that help you create the ending?
The inspiration was a friend who built a house on the wrong block of land; resulting in a legal battle that ended with a rather hollow win for him.
The description of the characters and their back stories are well developed. What is your experience with investing, websites, and real estate and how did you bring that into the novel?
I have dabbled in real estate investing for many years. As for websites, my knowledge is rather limited.
I think of The Crooked Boundary as a suspense story as well as a revenge story. Was it your intention to write this story in those genres?
Yes, as it was not intended to be a “who dunnit” mystery novel, I combined those two genres.
One of the main moral decisions in the novel is left up to a character named Cruz who I find to be an interesting person. What was your inspiration for that character and his role in the story?
Just to have a colorful character who could be construed as the good guy in the story.
Disgruntled investors who participated in class actions against the promoters of two failed dot-com companies in Australia and Brazil are left stunned when both actions are dismissed in the courts. The promoters then use the profits from their dubious business operations in the development of a country club and golf course in Tarabush, Australia. The project will be built on land purchased from their next door neighbor, Rex Whittaker, who lost money in the Australian dot-com company. Rex is a retired widower living alone; he befriends Cruz Bardot an information technology specialist who served in the Gulf War. Cruz is also the president of a dirt bike club located in bushland behind Rex’s property. When the only access bridge to the dirt bike club area is washed away in a flash flood, Rod and Cal, who are an eccentric pair of Vietnam vets and despite their age are dirt bike club members, go looking in the forest for another way to get to the dirt bike area. As they look for that alternative route they meet Rex for the first time, and unbeknown to everyone except Cruz, what comes out of that chance meeting creates what could be an opportunity for some of the investors to recoup part of their losses. It is now up to Cruz to decide what to do about it.
Posted in Interviews
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