Quote:
Originally Posted by kevman
I'm not going to claim to be a star investor but where can I get safe guaranteed returns of 9%? Actually, you'd need closer to 12%/year on $2 million to pull $15k a month and stay ahead of inflation. Maybe I'm doing it wrong but I'm not getting a guaranteed 12% on my investments.
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Of course nothing is guaranteed but I grew up thinking real estate was the best investment. And it was for many years but it is by no means without risk. Mortgage lending is not Shire or Concrete. I find actual people who need loans and have the kind of security I want. If you have a first mortgage on a property you like and at a loan to value you are comfortable with, that's the best you can do as far as risk.
You'd also be amazed at what people will pay for mortgage money. A 12% roi on a first mortgage at 60% ltv is not at all unusual. 6-9% is a very secure loan and usually around 40% ltv. Private money is much different than banks.