Stock Market Problems

Stock Market Problems

Considering the recent ups and downs in the stock market, is this the best time to invest in the real estate market? The answer is a complicated one, but the truth is that historically stock market problems boost real estate opportunities.

The volatility of the stock market is one that often catches many investors off-guard even when there are plenty of warnings and a proven history that such events can occur. For example, the recent event in August, 2015 demonstrated just how the market can put a real scare into investors despite the obvious signs of trouble. With so many people using the “easy” option of investing, $1.4 trillion of wealth was actually eliminated in one day!

The truth is that while stocks have been rising steadily over the past several years, they have not produced big returns for most investors. In fact, the average for successful investments in the stock is less than 10%, which is why more people are starting to look at real estate as a better option for their investments.

Why Real Estate is a Better Investment than the Stock Market

It’s little wonder that stock market problem boost real estate investments because of the negative factors that are associated with the market in general.

Too Volatile: While all forms of investment naturally fluctuates over time because of changing values, different demands and the strength of the currency, the stock market is simply more volatile and subject to remarkable falls even when the warning signs are present. In addition, while changes in the real estate market are mostly predictable, the same cannot be said about the stock market which can change suddenly and without warning in just a few hours. However, even when property values are down, real estate investments can keep paying out a profit thanks to cash flow properties.

Out of Touch: Another issue with the stock market is that it has changed over the years which has separated it from the basics that once applied. Today, there is a considerable amount of optimism applied to the stock market due to factors that cannot be sustained. With some economic factors on the rise such as the minimum wage, low interest rates, higher savings and better optimism for the future, there have also been some serious changes that includes far more people being self-employed which has discombobulated the fundamentals of the stock market.

However, the real estate market is also growing and is not affected by the factors which are currently propping up the stock market. This means that real estate is more resilient and more predicable for most investors.

Stock Market Correction: The panic that occurred in August, 2015 was considered a “correction” by many analysts. However, that is not the first correction that will occur and many experts are bracing for another, potentially larger one in the near future. This has caused some panic to set in and with more people looking for a way out, it’s little wonder that stock market problems boost real estate interests.

The Smart Alternative:  Today, the real estate market offers a safe place to invest with more potential particularly in the long run for greater profits and security.  Private money lending is the smart alternative, a private money loan is when you lend money to a real estate investor for the purchase of a property and the money is secured by real estate with a mortgage. Private money investors (lenders) are given a 1st or 2nd mortgage lien position that secures their legal interest in the property and secures their investment. Through that process, the lender can yield high interest rates at five to ten times the rates on bank CD’s and other investment plans. Private money lending is an opportunity to become the bank, reaping the profits just like a bank would. It’s an outstanding way to generate predictable returns while providing excellent security and safety for your investment.