REASON ONE
Low Yields on CD’s and Savings Accounts
Investors both big and small are realizing very low yields on their money using the traditional investment vehicles such as CD’s, saving accounts, stocks, bonds and mutual funds.
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The chart above provided by BankRate.com’s contributor Sheyna Steiner demonstrates the interest rate trend for 5-year CD’s over the last few months.
In that update she states, “Long-term rates on certificates of deposit and money market account yields shifted slightly this week. The average one-year CD yield remains at 0.34 percent for the sixth week. The average five-year CD gained 1 basis point to 1.15 percent. A basis point is one-hundredth of 1 percentage point. For deposits of $100,000, the average one-year jumbo CD yield is 0.36 percent. The five-year yield is down 1 basis point to 1.16 percent. The average money market account yield dipped 1 basis point to 0.13 percent.”1
This type of news is not very encouraging to investors.
While bigger investors may have opportunities to expand their investment portfolios and include investments which require expertise in specialized fields such as commodities, precious metals, currency trading, these may not be viable options for the smaller investor.
One often overlooked opportunity is real estate ownership. In light of today’s housing market, a small investor can easily acquire a cash flowing property for a low price. And since financing for would be buyers is becoming harder and harder to acquire due to tighter lending regulations, the demand for affordable housing makes it easy to find good tenants for these rental properties. The monthly rental income far exceeds yields being offered by banks.
If renting and having to deal with tenants is not something an investor is willing to do, then buying real estate and selling it using Owner Financing might be a good alternative.
When the house is sold the investor/seller can create a promissory note. In many cases, the note can often be sold to a professional note investor in a short period of time, often 3 to 6 months after receiving the 1st monthly payment. Once the note is sold, the investor can go out and do this again. Working with professionals to make sure things are done properly, an investor can realize a much more decent return for their money.
If you currently own a real estate note and are in need of immediate cash, we would like an opportunity to bid on and possible BUY YOUR NOTE! With over 20 years experience in the private note industry, our experienced staff is available to provide you with a quick quote and help make it easy for you to get the most for your note. Visit us today at www.notebuyingusa.com or contact us at 1-877-399-1211. If you are considering offering owner financing when you sell your property, please click here to receive your free copy of “10 Critical Steps to Creating a Sellable Note”.
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