Recently, I sold a home that a private Money Partner had provided the capital to acquire it. So of course, I had to pay him off. When he received the check from the closing attorney, he called me up and said, “I do n0t want this money sitting in my bank account. I want you to find another deal to reinvest this money because that’s how I make money. I want my money working for me!”
So you have to understand the psychology of my Money Partners and why they want to deal with me and others that buy and sell real estate like I do.
My Money Partners do not want to leave their money in the bank. Let’s face it, interest rates are soooooo low and they want a higher return on their money than the banks will ever consider giving them. So for individuals providing the capital to acquire real estate is a “no-brainer” because it’s one of the most absolutely secured investments that they could put their money in.
It’s also really simple to do compared to many other forms of investments and they know that when they fund one of my transactions they know that I’m able to get an incredible deal in today’s market. They know that real estate will always go up over time and the value will never go to zero like it can with stocks, shares, currency trading and other types of risky investments.
Real estate is a tangible asset, so even if I couldn’t perform, my Money Partners have the security that the value will still be there. And heck if the house burns down, that’s why we have insurance.
So can you understand why this Money Partner emphatically said, “I do not want this money sitting in my bank account”.
************************* If you are reading my blog for the first time, let me inform you that: I am a guy that 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…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 I get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with me to provide the funding which empowers me to be able to purchase real estate on a continual basis. Simple, it’s because I teach them a secured way to earn better rates of return than they are currently earning using a Self-Directed IRA.
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.[spacer height=”20px”]
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).