Friday
Jun152012

Lesson's I've learned from 22 years of investing!

  1. Communicate quickly and consistently with your buyers. Relationship is key. 
  2. Be firm but fair. Bernard Baruch quipped "nice guys finish last". Nice lenders also finish last on the borrowers list of vendors to pay when cash is tight. 
  3. Look at private loan investing as "buying realty". That means after you invest in a First Trust Deed, if you have the hassle of default, would you still be "OK" with owning the underlying realty?
  4. Sell realty quickly that you recover. By investing with equity, the goal if foreclosure occurs is to be able to sell at a fair but fast price relative to the general market. Quick sales mean you get back your income and your return.

Foreclosures are not a big deal. Sure they can be a hassle and not why we invest. 

And we are fortunate. All my stock and commodity market losses have been just that....losses! 

All of my defaulted notes have enjoyed valuable realty that I could sell for recover most (if not all and sometimes EVEN MORE then my private loan investment plus costs)

The goal is to win over time. Our private loan do this remarkably well! 

Secured lending into private loans give high returns, control and a simplicity of investing, even if there is a foreclosure, that few if any other investments enjoy long term.

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