Let Private Mortgage Note Income at 12% Fund Your Retirement

Everyone wants to enjoy their retirement after a lifetime of hard work.  But for many there is the concern of not having enough in assets to be able to do all the things they have hoped for after their career over.

For meeting all of your retirement financial needs, investing in private mortgage notes can provide a flow of income around 12%, a return that doubles every six years.

Private mortgages are loans from individuals or a group of investors to finance the purchase of real estate.  There are many ways to invest in private mortgage notes.  An individual can lend to another individual in an individual transaction.  Or an investor can join into a consortium with others to provide the funds for a variety of real estate buys, providing additional protection through a wide range of deals.  Only the very experienced should finance single transactions: the greater protection of investing with others in a range of deals is prudent for securing a stream of retirement income.

The returns from these mortgages can be in double digits.  According to Shaun Cohen, President of EquityBuild Finance, the funding arm of EquityBuild, a real estate investment firm, private mortgage notes have provided similar returns.  At that rate, the money invested in private mortgage notes would double in about every six years.

The best way to ensure that you "never outlive your money" in retirement is through investing in a fund that finances a variety of mortgages.  That way you get diversity in what is invested and the terms.  If done through EquityBuild Finance, for example, a flow of cash from a 12% return will be provided throughout the decades ahead.  Warren Buffett, considered by many to be the greatest investor ever, has always focused on companies with strong cash flow.

What makes private mortgage note financing even more appealing as an investment is the flexibility.  The terms are set between the lender and the borrower.  That allows for the private mortgage note to be structured so as to meet your retirement needs, no matter when.

If you want to protect against inflation, the terms can be set so that the amount increases over time.  There can be a balloon payment to provide a chunk of cash to meet your needs in the future.  The balloon payment might be wanted to finance more private mortgage notes at a later point.

Holding private mortgage notes in your retirement accounts will increase the net return.  There is no tax on the income received from a private mortgage note when it is held in a retirement account, such as an Individual Retirement Account (IRA).  If you decide to sell a private mortgage note, there is no tax on the capital gains if done in a retirement account, either.  Holding real estate assets such as a private mortgage note in a retirement account does away with the tax burden, which results in a much higher yield for a tax free investment.

Private mortgage note financing is the ultimate in passive investing for the long term in real estate, which makes it an excellent way to fund retirement.  There is protection from a diversity in assets with a mortgage attached to the properties.  Only the real estate deemed most suitable will be funded.  The private mortgages provided can be structured in terms so that there is a continual flow of income throughout your retirement years. With private mortgage note investing done right, it will be impossible to "outlive your money" in retirement.