Myrtle Beach, South Carolina Real Estate Investing In Foreclosures For Profit

Online, May 11, 2011 (Newswire.com) - The Dow Jones returned 18% in 10 years... uhmm...
only 1.8% per year...

Yes, that is correct - from March 16, 2001 to March 16, 2011, the Dow Jones increased 18%, which equals 1.8% per year.

What??? Only 1.8% per year? Here are the numbers for one share of the Dow Jones:
March 16, 2001 - $9,823
March 16, 2011 - $11,613

That is a $1,790 profit over ten years or $179 per year.
Hmm... that Return on Investment (ROI) does not seem worth the risk...

Is there an investment alternative?

Yes, there is! Private Money Mortgages

What are Private Money Mortgages? Private Money Mortgages are loans made to a Real Estate Investor and in turn the loans are secured by the actual property the Real Estate Investor purchases or already owns. This gives the Private Money Mortgage Lender collateral, and the loaned money is secured by a property.

The Return on Investment (ROI) of Private Money Mortgages varies depending on the interest rate the Private Money Mortgage Lender and the Real Estate Investor agree on. Let's use 6% per year for an example.

A Private Money Mortgage loan of $9,823 (the same amount as a share of the Dow Jones on March 16, 2001) is made to a Real Estate Investor at 6% per year for 10 years. The Private Money Mortgage Lender receives a mortgage and promissory note, at least in South Carolina (the documents to secure the money to the property vary by state).

At 6% per year, the Private Money Mortgage Lender would have been paid $589.38 each year or a total of $5,894 in ten years.

Let's compare:
A share of the Dow Jones return in 10 years - $1,790 (18%) or $179 (1.8%) per year
Private Money Mortgage return in 10 years - $5,894 (60%) or $589 (6%) per year

Wow, that is a difference!!!
Does the Dow Jones and stock market outperform Private Money Mortgages in other ten year time periods? Some yes, and some no.
The big question is "Can you afford the volatility of the stock market?" You cannot predict the stock market, and the volatility may hinder your long term investment goals (or short term, if you plan on retiring in 5-10 years).

Private Money Mortgages provide fixed returns, so your ROI (and investment income/growth) is consistent and predictable. With Private Money Mortgages, you can make plans based on a mortgage payment schedule.

Private Money Mortgages are not for everyone; however, they are great opportunities for the right individuals. If you want to learn more or have questions about Private Money Mortgages, please feel free to contact us at 843-471-0064

Drew Habib
Leading Edge, Inc.
Real Estate-Financing-Investments