Tuesday
Jun262012

How to be a backyard banker.

Banking is based on good loans with equity paying interest over time with security. Learn how to join this niche in your own home town.

Warren Buffet says this about investing, "Rule #1. Don't lose money Rule #2. Never forget Rule #1!" When you invest in secured 1st position private loans (whether discounted notes or hard money loans), you have one of the best chances to follow Buffet's dictum! 

I call it old fashioned private lending. Investor buys a 6-12% first mortgage or trust deed secured by at least 30% equity. Borrower pays investor until loan is either paid off (95% of the time) OR quits paying and investor gets an excellent Plan B- owns the property through foreclosure. Good banking is one of the best businesses. Good investing into first trust deeds is one of the best investments since you get high returns and enjoy stable security of the underlying realty. I call it "How to be a backyard banker" Warren Buffet calls it Rule Number One!

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