Don’t Take Unnecessary Risk
Hello, dear reader, and welcome back to our blog! Here at Owner Builder Loans, LLC, we have developed an investment strategy that, when compared to other investments tools, provides our investors with a low-risk investment opportunity with a relatively high rate of return. In our previous post, we went over some of the key differences between high-risk and low-risk investments in order to make sure that all of our readers have at least a basic understanding of the two main types of investment strategy. In today’s post, we are going to continue along this same vein of thought and explain what makes our program such a low-risk investment opportunity. Continue reading below to learn more.
Protect Your Investment While Making Money
As most people know, placing your money in a savings account is almost as useless as placing your money in a mattress. The rate of return that a savings account offers is, in the scheme of things, quite laughable. For this reason, many people look for other ways to make the money that they have saved up work to make them money. Unfortunately, not every investment strategy is safe. In some cases, a person can be worse off after an investment than they would have been had they simply left their money alone. So, as an investor, how are you supposed to know which investments are safe and which investments carry the risk of you losing a large sum of your own money? While there is no sure fire way to make sure that your investment is 100 percent safe, there are certain investments that are safer than others. Below, we have listed a few of the reasons that help make our investment opportunity so secure.
- Collective Investment: One of the riskiest parts of investing is the fact that a person has to take the chance that their money will not only be returned to them but that it will be returned to them as a larger sum than they initially put in. This can be difficult when making a one-on-one investment because they are literally assuming all of the risk if the investment falls through. Here at Owner Builder Loans, LLC, we believe that there is a better way to invest. Why assume all of the risk yourself when you can spread that risk across multiple investors? When you make an investment with us, you aren’t investing in a single owner builder loan. Your money is placed into a pool with other investor’s capital, reducing the chance that a single failed loan will result in a negative investment. In addition to a pool of investors money, we also have a conservative company equity policy that mandates the total of all investments plus any lines of credit issues to Owner Builder Loans, LLC cannot exceed one times the company’s equity. This means that we will never raise more investments than what can be backed by the company’s own equity.
- Short Term Commitment: Another factor that helps to make our investment a low-risk opportunity, is the fact that the investment period is relatively short, requiring only a 12 month commitment from our investors. This means that your money is not tied up in an investment that is going to take years to produce results, allowing you to either invest as a one time way to make some extra cash or reinvest every time the 12 month commitment is over. While the choice is completely up to you, many of our investors are so happy with the returns that they see that they are eager to keep investing in our program.
- Mortgage Backed: The final factor that we will mention that has an influence on the risk of our loans is the way in which the loans are repaid. Once the home is completed that the loan was taken out for in the first place, our investors are paid back through the mortgage that is provided by the bank. This means that our investors are not dependent upon an individual to pay them back, but are instead paid back by a financial institution, greatly decreasing the chances that their investment will be repaid after the 12 months commitment is over.
If you would like to learn more about our investment opportunity or you would simply like to learn more about who we are, what we do, and why we do it, contact us today by visiting our website or giving us a call. We have been helping investors and home builders since 2011 and, in that time, we have never had a loan default. This track record coupled with the additional protections we have put in place to make sure that our investors are making the safest investment possible, making our investment opportunity one that we feel people can truly benefit from.