Grove Family Investments

And beat the stock market at the same time

If you’re like me, you have been taught most of your adult life that the best way to prepare for your future and retirement is to put money in the stock market and let it grow over time. If you are also like me, you may have found that the returns you often get are disappointing. Well the stock market on average gives a 10% return annually, most of us have a mix of stocks and bonds and end up with a return of 6-8% when averaged over long periods of time. sure, there are years where things look great but then there are the years when things are not so great. you are also left to the whims of Wall Street and the economy as a whole with little control or understanding of how either of these work.

It turns out that there are numerous ways to make money in real estate investing. Some of these require very little knowledge of real estate itself. It is possible for any individual To function like a bank and make loans that are secured to real estate. You can essentially be the source of a mortgage on a house. Why should the banks make all the money?

I had an opportunity to do this for myself when I first started investing. I lent some of the money that had been making a modest return in a mix of stocks and bonds to an investor who used that money to buy real estate. they then paid me back monthly an interest only payment with a 12% rate of return. I made that return without paying any fees to Wall Street firms and did not have to worry about Swings in the market . I didn’t have to do anything other than wire the money and sign the documents. It is the most passive way to make money in real estate.

So what are the advantages?

1. Higher Returns: One of the most compelling reasons to consider private money lending is the potential for higher returns on investment. As a private lender, you have the opportunity to earn attractive interest rates that often surpass those offered by traditional savings accounts, CDs, or other investment vehicles.
2. Collateralized Investments: Unlike other investment vehicles that may carry inherent risks, private money lending in real estate is secured by something tangible – the property itself. This provides a level of security minimizing the risk of default and potential loss of principal. In the event of borrower default, private lenders have recourse allowing them to recoup their investment through foreclosure or other legal means. When the stock market fails, that money is gone. When an investor doesn’t pay you can recoup the investment through the foreclosure or bankruptcy process.
3. Diversification : Private money lending offers you the opportunity to diversify your investment portfolio beyond traditional stocks, bonds, and mutual funds. By allocating capital to real estate projects through private lending, you can spread risk across different asset classes and investment strategies, reducing volatility and enhancing long-term stability. This diversification can help safeguard against market downturns and economic uncertainties, ensuring a more resilient and balanced investment approach.
4. Passive Income Generation: Private money lending provides you with the opportunity to generate passive income. As a private lender, you can earn consistent returns on your investment without the hassle of property maintenance, tenant management, or day-to-day operations. You get to enjoy the benefits of real estate investing without the associated time commitment or stress.
5. Flexible Terms: It’s your money so you can negotiate the terms that work for you. You can decide what interest rate you want to charge, how long You want the loan to last, whether you want a lump sum “balloon” payment and when. Try telling your corporate mega bank The terms that you want to get.
6. Speed and Efficiency: It is possible to get your money deployed and working for you in a matter of days. you’ll then get your monthly payment on schedule.

Conclusion: If you are tired of your low returns, unnecessary fees, and lack of control you should really look into becoming a private money lender. There are thousands of real estate investors out there that are looking for people such as yourself to lend on their investments. Feel free to schedule a meeting and see if we can help connect you.