The stock market was devastated by the worst one-day collapse in history in a pandemonium of panic selling that shattered all records, worse than during the Great Depression.
That was Tuesday, October 20, 1987.
When the stock market fell in 1929, it was said that bankrupt speculators, who were once aristocracy, committed suicide by jumping out of buildings.
Could this happen again?
ANYTIME.
Do you have stock market insurance?
Of course not, because there is no insurance against falling stocks. Unless, of course, you're willing to pay for an option to sell your shares once they've lost enough.
Investing in the stock market can be compared to throwing your money on the poker table, when you're not even playing! You have no control and no insurance. Sure, the big players and brokers
advise everyone to get into the market. The more money there, the more they stand to make.
So what can you do with your money to get a decent rate of return and secure your investment with collateral?
Have you considered becoming a private mortgage lender?
A private mortgage lender loans money to a real estate investor who then pays back the loan with an agreed-upon interest rate.
And guess what?
Private mortgage lenders have collateral!
As a private mortgage lender, you are not responsible for finding anyone to loan money to. You are investing in a business that makes
first position lien mortgages with loan to value (LTV) ratios of seventy per cent or less. This means the loans are only made for up to seventy per cent of the After Repair Value (ARV).
*You choose how much to invest.
*You only handle minimal details.
*You have no costs.
*You do no collecting
*Your investment is secured - you receive a security instrument with
a property as collateral and all pertinent documents.
*You can liquidate easily.
Q: Is this a mortgage pool?
A: No, it's not. You are in charge. You don't answer to the bank, because you are the bank!
Q: Will I have to handle all of the minute and tedious details?
A: No, you do not have to worry about handling any of the annoying details - the business you deal with will take care of that for you.
Q: Who determines the term of the loan, and do I have to commit to someone else's business plan?
A: You determine the loan! You do not have to commit to anyone's plan but your own. You are able to form the term of your own plans.
You decide the length of the loan from the very beginning. You are in control.
Q: Will my loan be secured?
A: Yes, you acquire a secured instrument using property as collateral and all relevant documents and hazard insurance.
Q: What kind of costs will I have?
A: None. The borrower pays all the costs. You don't have to mess with fees of any sort.
Q: Will I have to spend a lot of time collecting the money and dealing with billing issues?
A: No, there are absolutely no collection hassles. You don't have to worry about a thing!
Q: Will I be able to apply any tax deferments to this plan?
A: Yes, your earnings can be tax deferred, if they are made through the right investment vehicle, such as your IRA or pension plan.
Please consult your legal and tax advisors when making any investments.
There is little protection against loss in the market due to falling stocks. Private mortgage lending has real collateral and real property insurance. Maybe the time has come for you to start getting the sleep you deserve. Next time there's a headline like the one above, instead of feeling like finding a roof and jumping off, you'll be one of the people who can laugh it off.
