Only mere hours ago we all saw live the Dow drop near 1,000 points in a startling amount of time. As I’m writing this the market has “recovered” but such volatility will not leave the minds of those who have their savings and IRAs in a stock portfolio that is certainly showing more red than they are accustomed to. To think that such a small country like Greece can trigger such waves because of the liquidity has compromised the integrity of the stock market and the following stories, finger pointing and possible domino effect that may be looming will leave these investors looking for a safe haven.
Suddenly the idea of investing into private money secured by real estate is looking a lot better because the institutional funding is removed, the once illiquid characteristic of real estate that was once considered a burden acts as a safe guard between a literal freefall.
It’s been a wonder why that stock market has been soaring while unemployment remains high, consumer confidence is a blank stare, and the actions of the government seem to be doing everything in their power to sandbag our economy. All of this aside, some of these concerns may stick out in the minds of investors who are frantically searching for a secure return on their investments and that opens the door for real estate investors to come in and bring these investors into the win-win situations that we create.
While the stock market has left a freshly bitter taste in the mouths of investors where losses are completely unsecured, real estate offers a perfect opportunity for real estate investors to turn them into private money lenders. There are so many incredible opportunities in real estate right now as we’ve hit the depths of our market that contract for deed payments rival the affordability of your average rent for an apartment with a comparable number of bedrooms.
If you look at Maslow’s Hierarchy you’ll see that shelter is one of the first requisites for a humans well being. People will always need a place to live through thick and thin… Stocks on the other hand are a derivative of the value of businesses that are tied into a larger system that trades derivates and given the liquid state of these derivates compared to the hard asset of a return secured by real estate the choice should be clearer.
The opportunity is now to convert investors in the stock market to private money lenders because whether the writing really is on the wall or not, the perception of volatility is self fulfilling. Both the stock investor and the real estate investor can both see eye-to-eye on the reality that the stock market is volatile and that investing private money into real estate that is secured is an appealing option… now more than ever. Communicate this clearly and what you’re bringing to the presentation table will be received with much more inviting ears.
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