While meeting with a potential Private Money Partner in Cincinnati last weekend he mentioned something that made my big ears perk up. He asked me “are you one of those guys that promise high returns with no risk”? Promises of high returns with no risk? I responded everything has risks!”
This is perhaps the number one fraud indicator. Stay away from individuals who promise above-market returns in a specific amount of time, guaranteed. Remember – there is no such thing as a free lunch. Investments that are reaching for above market returns must always involve some risk.
There are insured products, of course, such as annuities. But these typically will not have above-market returns. Insured products are risk-reduction vehicles, and not designed to outperform underlying benchmarks over the long haul.
********************************* 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).