Certificate of deposits: CD’s use to be a solid investment that was safe and secure. That paradigm has shifted. The new reality is that there are plenty of banks struggling and the returns produced do not keep up with inflation rates. You can now get returns between .35 and 1.7% depending how long you leave your investment at your local banks.
Once you make that deposit, to free up your funds before maturity they stick you with a pre-payment penalty. I often times speak with people who have funds locked into a CD and are rightfully frustrated with their returns. Some of them withdraw their money because I help pay for the pre-payment penalty and that frees up their funds and allows them to become one of my Private Money Partners.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).