By rolling or transferring your IRA or abandoned 401(k) (some of my friends don’t even look at their 401(k)’s anymore because it is too painful) to a self-directed IRA or 401(k) account you have not only the ability to continue to invest in the same investments you are in now (which, if it is mutual funds, you are dying a slow death) but also alternative investments such as Notes, Real Estate Options and Real Estate itself. Even if you choose not to invest in our opportunities here at TopDollar -> this is something you need to do.
I am a big believer in investing in 'Private Money Loans' secured by a Deed of Trust. I loan money from my Self-Directed ROTH IRA now and have been for a couple of years. You can easily receive up to 15% returns annually and your principal is secured by real estate at a very low loan-to-value (LTV). Meaning, if you loan $100,000 the property must appraise much higher than your loan with a true appraisal, not a fabricated one. If you can stay at 75% LTV, when you loan $100,000 the property must be worth $133,000 or more. If the borrower doesn't pay you simply foreclose and fire sale the property and probably make a better profit by doing so. You get your investment back! Who would of thought of that in the Stock Market.
Of course there are ways to eliminate the foreclosure process but I will save that for another article or video down the road.
Folks, receiving 15% returns, heck, receiving just a 12% consistent, safe and secure return will make you rich and I can prove it. You will simply blow your neighbors savings away and safely. I do this everyday and I will loan money until the day I die. It just makes sense. I have no money in the stock market or even Gold. Because both of those will come crashing down someday. However my loans keep paying no matter what is going on in the investing world.
Of course this is just one example of an alternative investment, there are many more but I am a BIG advocate of being the bank with security.
You don’t get security with normal investments like a Mutual Fund. Your fund could be worth much less someday. You also have no control over those gains.
Ask yourself the question “why is there a bank on every corner?” Because they make a killing on single family real estate even in today’s market, don’t kid yourself. They are still lending at 97% LTV today! I am telling you to only lend at 85% LTV max (if you love the house cause you could get it).
So hopefully you can see why I believe Private Money Lending is the real way to get rich no matter how much money you start with. If you are the bank, you can just pick your interest rate, lend and secure it against a good property and ride the wave and retire in style!
MUTUAL FUNDS ARE A SURE PATH TO THE POOR HOUSE!
