What does “Investment tied to a Real Property” mean?
When you invest with us at Real Estate Investment Results (REIR.co), your money is not sent directly to us. It is sent to a title company where a note and mortgage are prepared with the investment agreement attached to a single-family home.
What’s the benefit?
When you invest in the stock market, your dollars are attached to stock certificates. Your money is attached to something, but the value of that stock certificate can actually go to zero. So, the paper that you’re holding onto you can actually become worthless.
In any event, investing in a real property with REIR.co means your money is attached to a real property that is insured in case of fire or damage. Even if the value goes down there is still a physical asset that can be sold off to recover your investment. This is why only borrowing at 75% LTV (Loan-to-value) protects you.
The advantages of stock market investing are how quick you can liquidate the stock certificates. The problem/disadvantage is that unless you’re watching your stock market ticker every hour like the professionals do, you will not be able to move your stocks quick enough when your stocks start falling and you will lose value in your portfolio.
Thus, the disadvantage of illiquidity in real estate investing becomes an advantage as the value in the real property is not quickly dissipated.
Every investor that I know, who invested in a large portfolio with a nationally known stock brokerage company had a huge up-tick over three months. But, by the end of the year, that up-tick had disappeared and there was an inability to know how stable that investment really was overall.
At REIR.co we pay a higher rate of return and seek to turn your investment dollars more than
once a year. This gives you the hybrid effect of a better rate of return and some liquidity in that you will get your capital back with that return on investment in six to 12 months.
When you invest with REIR.co, your investment capital is also tied to a real property with title insurance, hazard insurance, and investment insurance.
Feel free to reach out for more information. I’d be happy to answer any questions you might have. You can call me on my cell phone at 608-306-1199.
Comments