The Stock Market Oscillates But Private Lending is a Steady

By: Travis Millward

After the death of his father, Mike came into a bit of inheritance money. He was advised to invest 80 percent of his inheritance aggressively and use the remaining 20 percent to pay bills, buy a few luxury items, and put just a little in liquid savings. After careful consideration, Mike decided to divide his allocated investment
money into two different areas of investments: Stocks and private mortgage lending.

Mike was told that private mortgage lending was secured by real estate and steady, aggressive rates were available, and the stock market would be his aggressive investment. At first, Mike's stocks soared. He really felt he had chosen wisely the companies into which he put his faith, trust, and money. He was earning more than
he could have imagined.

Mike bought more stocks. He sold some stocks. Mike was developing quite an impressive portfolio. In fact, even a few of his friends were beginning to see how well Mike was doing and following in his footsteps.

Mike felt so confident with his investment choice he began giving others advice. He even decided to quit his job and become a stock broker. He figured that if he could manage his own money so well, he could certainly manage other people's money. However, on his last day of work, the stock market took a dip. Two of his investment
stocks crashed. Everyone was selling. Mike did not know what to do. He had just lost thousands of dollars. Not to mention he was out of work.

After three weeks of moping in his pajamas and eating ice cream out of the carton, Mike finally realized that the stock market was a far riskier place for him to put his faith, trust, and money than he had realized. Just at that moment of clarification, Mike picked up his mail. In among the flagged red bills was a check. Mike could not understand. He had already used his last paycheck from his old job to invest in other stocks to pull his way out of financial hot water.

What was this check? Full of excitement, he ripped open the envelope. There it was; the principal loan he had invested in private
mortgage lending, along with the interest that had accrued.

Private mortgage lending was so easy and hassle free! Mike felt a rush of gratitude overwhelm him. It was if his father had been watching over him, not letting him go astray. As Mike thought of his father, he remembered that he had always been an advocate of private mortgage lending. His father had told him, as a young man,
that if he ever needed an idea for ways to invest his money, he should look to real estate. His father had not been wrong!

While the stock market continuously fluctuates, the need for homes will never oscillate. Shelter is a fundamental need human beings have and there is always money to be made when a fundamental
need is involved.

Let Mike's experience be a lesson to us all:

Don't put all your money in something that may come and go like the stock market. Consider a lasting need, like the essential demand for homes.

Real Estate
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