(Chart below curtesy of usdebtclock.org) Watch in real time if you want to get sick to your stomach.
The global debt is up 50% since the financial crisis (Great Depression). As of July 2019, the current global debit is over $247 trillionand growing by the millions every day. What is even more alarming is how none of this debt is being paid down. This is after the U.S has had the longest run of expansion in history.
But that isn’t the scary part. The scary part is most of the world is already experiencing a market slow down and all signs point to a market correction in the U.S. We already have more debt than our total Gross Domestic Product. This doesn’t even begin to account for all the unfunded programs like Medicare and Social Security.
What will happen this time when governments like the U.S can’t spend their way out of the next financial crisis? What can we do to protect the wealth we created?
Bonds? Unfortunately, bonds are riskier than you think. Over $14 trillion now have negative yield. Meaning your money really isn’t safe. Especially when you invest in governments that can't pay down their own current obligations. bloomberg/the black hole engulfing the worlds bond market
Stocks? Some stocks will do well but most tumble during a recession. If you are hand picking your stocks you may end up with a winner, but most Americans believe in diversified mutual funds. Therefore, most portfolios will decrease during a recession. Leaving investors with the stay and pray method to investing.
Real Estate? Some sectors may do well, however, most are tied to highly leveraged debt(mortgages) with overvalued properties. This can be a big problem when tenants & borrowers can no longer afford to pay exorbitant rent or mortgage payments. cnbc/home sale point to recession
By being your own bank you can not only do well when things are good but you can do even better when they are not. How?
By doing the opposite of how banks lend. Instead of overextending, you only lend a small amount relative to the true value of a property. This one of the best way to protect and grow your wealth.
During the last recession, nothing really affected this group. The property didn't suddenly burst into flames. The borrowers still had to live somewhere and the payments were affordable. For the few borrowers that did default, the lender wasn't affected since they still had equity in the home to protect their investment.
In fact, private lenders made a killing during the last recession. They were able to purchase properties for pennies on the dollar and then sell the property with seller financing (like land contracts) for much more.
This is where we come in at Expand Capital Group.
Our plan is simple. Currently, during the peak real estate boom cycle, we find existing loan opportunities to purchase. These loans include private lender loans and land contracts that were created during the last recession.
What we do differently is we acquire the loan secured by properties that have already appreciated, by focusing on loans that began in 2010 to 2014. The balance of these loans is very low compared to the properties current value.
The below graph demonstrates our plan.
These loans can be the safest investment during uncertain times since they have the largest amount of equity. In mortgage terms we are talking about the Loan to Value (LTV). Currently, the loans we have purchased for our fund on average are below 50% (LTV).
As the below illustration demonstrates, the lower the loan amount compared to the value the less risk to the lender and more value to the borrower.
Our plan doesn't require leverage and speculation. We aren't affected by Wall Street or government trade wars. There is a better way to retire early and wealthy by being the bank.
Learn more "Top 10 Reasons to Invest with Us"
Check out our new website for great info and case studies: expandcap.com
Email me today at firstname.lastname@example.org or call me at 248-955-8222 to learn more about these opportunities.
This type of investment may be for you if:
- You're looking for a simplified investment that only uses cash. No leverage.
- You're concerned about your IRA/401K or other retirement savings lasting another recession.
- You want to take back control of your money and protect it from Wall Street's next bail out.
*Build a strong retirement that is immune to Wall Street. If you're rich, you put your money in the bank. If you're wealthy, you are the bank!
Kyle Zimpleman, Managing Member
We identify opportunities to acquire pre-foreclosure, bank owned, and performing loans at pennies on the dollar from our network of banks and hedge funds. This fund provides a vehicle for investors to participate in off-market real estate long before its available to the public.