{"id":443,"date":"2011-09-19T13:24:25","date_gmt":"2011-09-19T20:24:25","guid":{"rendered":"http:\/\/privatemoneysource.com\/blog\/?p=443"},"modified":"2011-09-19T13:24:25","modified_gmt":"2011-09-19T20:24:25","slug":"a-good-time-for-private-money-investing-or-so-we-think","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/blog\/?p=443","title":{"rendered":"A good time for private money investing (or so we think)"},"content":{"rendered":"<p><em>Clay Sparkman<\/em><\/p>\n<p>We\u2019ve been getting quite a few calls from new investors lately who are interested in investing in trust deed secured loans. This makes a certain amount of sense to me, as a number of factors are lining up to enhance the attractiveness of this type of investing. The factors I have in mind include the following:<\/p>\n<ul>\n<li>The stock market is highly volatile.<\/li>\n<li>Treasury securities pay almost nothing and are only rated AA+ (by&#8211;as you know&#8211;one particular rating agency).<\/li>\n<li>Most investors wish to diversify beyond commodities markets such as gold and other hard metals.<\/li>\n<li>Trust deed secured loans are backed by actual collateral to facilitate recovery in the event of a default. Very few investments, if you think of it, actually have a backstop.<\/li>\n<li>There seems to be a growing sense among economists, various experts, and those who deal in real estate markets that real estate values are not likely to fall significantly during the next few years (though they may continue to decline in certain areas).<\/li>\n<li>As I noted in an earlier post, Miami markets are fast on the mend. What is happening there? (investors from all over the world have decided that property values are at a low and are swooping in to buy excess inventory, thus driving prices up. This may be the beginning of a potentially nationwide trend. Investors tend to be bearish by nature, so when they think a market has pretty much bottomed out, it is worth paying attention to this collective information.<\/li>\n<li>The point about the market more-or-less bottoming out seems to apply most particularly to commercial real estate.<\/li>\n<li>And of course, as an investor you have a buffer against a reasonable amount of depreciation in your collateral market. For example, if you lend on a certain property for one year at 65% LTV and if values in that market fall by 8% during that year, you\u2019re most likely going to come out whole if you have to take back the property. (The markets for rentals appear to be strong.)<\/li>\n<\/ul>\n<p>Let me know if you have any additional thoughts regarding pros and\/or cons of investing in trust deed secured loans at this time.<\/p>\n<p>On a related\u00a0 note: this is a very specialized niche blog. Currently there are 123 subscribers, and I don&#8217;t have any way of knowing how many people read the blog through and RSS feed. (This compared with my private money for borrower\/brokers post which has 1750 subscribers and an unknown number of RSS readers). I rarely every receive comments back from the readers of this blog&#8211;and don\u2019t get me wrong; I understand this as I don\u2019t often comment on the blogs that I myself read (I tend to silently enjoy them). Yet I sometimes lose steam as I begin to wonder if folks out there are actually reading this stuff.<\/p>\n<p>I am going to do something now that I ordinarily only do with my wife: <em><strong>beg<\/strong><\/em>. If you are reading these posts (or at least a few posts here and there when you have the time), would you be so kind as to send a quick note back or post a message saying so (nothing fancy; just an \u201cI read this blog\u201d sort of thing)? I would appreciate it greatly, so please, please, oh please \u2026 &lt;begging part&gt;. There, that wasn\u2019t so bad now was it.<\/p>\n<p>The other thing that would be quite helpful is if readers would give me some indication of what they would like to see in future posts. With some 17 years in the business, I am capable of writing a decent post with regard to just about any aspect of the private money investing business, but I get to a point where I simply don\u2019t know where to go next. This is your chance. Put in a request, and I&#8217;ll do my best to give you something worthwhile back. Deal?<\/p>\n<p style=\"padding-left: 30px;\">&#8212; Clay (clay@privatemoneysource.com, 503-476-2909 or 800-971-1858)<\/p>\n<p><em>Clay is Vice President of Fairfield Financial, a primary source    for private money loans since 1964.\u00a0 Fairfield works with a broad range    of private money investors, in a broker capacity, finding,   underwriting,  presenting, closing, servicing, and when necessary,   assisting in the  workout of difficult loans.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Clay Sparkman We\u2019ve been getting quite a few calls from new investors lately who are interested in investing in trust deed secured loans. This makes a certain amount of sense to me, as a number of factors are lining up to enhance the attractiveness of this type of investing. The factors I have in mind [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[2,7,19,21,26],"tags":[38,40,41,42,43,49,50,51,54,58,59,60],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/443"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=443"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/443\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}