March 2, 2010

Two more banks failed yesterday – bringing the total to 22 this year so far.  It is not surprising that we investors cannot access money through traditional channels anymore.  Since the demise of Enron, and the spotlight on the lack of diversification in retirement accounts for individuals there, restrictions have been lifted with 401K investment plans.   Employees, in many cases, even if they are still working at the company, can gain access to their own funds and roll them over to a self-directed IRA.  What if you could purchase a house by doing just this, and diversify in a market that currently has values last seen in the 1990′s? 

I assisted one of our members in developing a plan to roll over $1,000,000 to set up a private money business – he now earns $10,000 a month loaning that money out at 10%.  I am not saying this is easy or does not require work, but banks are not allowing investors to borrow right now, and so investors are turning to one another for financing.  What I like about this is if structured correctly, and I emphasize this, the person lending the funds should be in first position, and the loan should be a maximum of 70% of the value of the  property thereby creating a very safe investment vehicle to build wealth. It is a win/win situation for both parties. Come hear Eric Wickstrom address this strategy and more at our SJREI meetings this week. Please don’t miss this opportunity to hear information that is rarely addressed in these specific terms.