Well, my wife and I are in the middle of fundraising for our next project. A rather large one at that. I think this feat is the toughest one of them all when it comes to investing businesses and real estate. I am still thinking there is something fundamentally wrong with the way Crissy and I go about raising funds, even though we have spent lots of time in training and reading up on selling and marketing skills in terms of fundraising. Otherwise, I would love to point my finger and blame the mid-western mentality of the people out here at times. Though I know better than to place blame there, because for the 1 finger pointing at the blame, 3 fingers point back towards me.
I guess I am not getting the techniques down or the spiel right.
I do not consider myself all that smart, though the simple math and logic of what we present to folks is a brainless decision when it comes to making extra money with interest rate earn when folks lend money. Each and every day, my husband and I have folks approach us about how to make a little extra money without having to work another job. They lament about their bills exceeding their income (not learning to live within your means), about how their bosses don’t appreciate them (what have you done to go above their expectations without hounding you to do so), their jobs don’t really pay (and they don’t because JOB means Just Over Broke), etc., etc.
So, when we tell them what we do or offer them an opportunity to make a little extra, they look at you like a deer trapped in the oncoming headlights. The few that do understand, think you are scamming them or think it is illegal, or my husband’s personal favorite excuse, they want a guarantee.
The only thing we can guarantee is that change is a constant. That you will die one day. That there will be sunny and rainy days. But when it comes to investing, there are no guarantees. Even in business investing in and when it comes to investing in the stock market and market funds. There are no guarantees.
We find it mildly amusing these folks will work overtime just to make ends meet or to give their money to a stock broker or market manager trusting them to make their money grow. It doesn’t always happen as many folks quickly found out during the 2008 crash. Many 401Ks became 201Ks overnight. What happened to your guarantee there?
If your savings, checking, or money market account is only earning you roughly 2% a year and the going inflation average rate is 4%, then what is your account really making? Answer: a whoping -2% lost!
Is that enough to retire on? I really don’t think there would be anything left of your retirement by the time one reaches 50 much less the golden age of 65 to retire.
So, when a person offers you a chance to make 7-10% or more yearly within a certain amount of time given or agreed upon, wouldn’t that be to your favor? I hope you all could figure out the math on this one with average inflation rate of 4%. Yeah, even 6% is better than nothing, at least, it leaves you with 2% earned. And this is not figuring in the dreaded capital gains tax of 35%. Yup, folks, that’s right. You do get taxed on interest earnings each April 15th. So, what is your take home pay or retirement fund now worth?
The only guarantee we provide is our knowledge of what we do, what works and what doesn’t, our financial history along with our growing real estate investment, and the financial knowledge when it comes to doing our due diligence when purchasing potential properties. The other thing we do that most money market managers and financial planners don’t do is that if the deal is successful in its net profit (not gross) you, the investor, get paid first. If for some reason, by literally the act of God or nature, we fail, we will make every effort to pay our investors back with their initial investment money (without interest earned) before we ever take the money leftover ourselves. The reality and guarantee is that we don’t get paid until net operating expenses are paid and you are paid.
Where would that leave you? The worst, you would get your initial money back in time, maybe not exactly on the original time table, but you would eventually get it back. The best, you would get anywhere from 3 to 8% on your rate of interest earned, still beating the 4% inflationary rate.
With interest rates as low as 2-4% when it comes to obtaining bank loans, for those of you lucky enough to be approved, this is great news. However, earning 2-4% on your loan to a business or real estate investor—you are still negative to break even on your nest egg money growing for you. If someone offered me a chance to make my money work for 8% or better, you bet I would be all over it. Of course, if someone offered me as high as 25% or higher, I would be more skeptical. The higher the interest rate the higher the risk in most cases. Be sure you can stomach the risks.
Instead of complaining and whining about not making more money check into helping out a small business or real estate investor. Do your due diligence checks before you invest. Make sure they are seasoned some what and have a good track history. Ask questions and make sure you understand everything before you loan out money from your savings, against your CD, or your IRA. Get it in writing.
Know of others wanting to work smart and not hard? Refer them to us. We will borrow as little as $10K at 10% per year or more depending on project in works. That makes you an additional $1000 without having to really lift a finger.