Do You Have Stock Market Whiplash???

This is Ryan Janssen. You may have seen some of my posts related to real estate note investing or possibly videos of some of the not so pleasant properties I see out there. In light of the massive volatility the markets are experiencing I wanted to take the opportunity to share a bit more about what it is that we do at Ryan’s Buying as well a clarify what note investing is, hopefully taking some of the mystery out of it.

Our core business is to buy, rehab, and resell residential real estate but we are also getting into some larger development projects as well. In 2019 we completed 24 projects and will grow that by better than 50% this year. All of our projects are funded by private individuals or “note investors” who collectively earned more than $211,000 in 2019. Effectively our investors are the bank. They make loans to the business which are secured by real estate the same as a bank would provide a loan to someone purchasing a home. Each loan is tied to a specific property and the investor is provided a promissory note (hence note investing) and a mortgage, securing their investment. The business makes monthly interest payments to the investor until the property is sold at which time the investor has the option to cash out or roll over to a new property. For example a $100,000 investment at 10% APR would return an $833.33 monthly payment to the note holder/investor. Our investors love their monthly checks, they love that their money is tied to a tangible asset and frankly the love us.

I personally find it frightening that a virus from china can wipe out 3 years of market gains in a matter of  a week. Yes, markets do historically rebound, sometimes quickly but often over time, and you may have time to wait it out, but do you want to? Once it returns what will the next crisis be to send it tumbling down again? Are you frustrated with the lack of control?

Is it worth a 15 minute phone call or a lunch meeting to discuss diversifying into real estate lending in greater detail?

I wish you all well and no matter where your money is, I hope the investment Gods look favorably upon you.