Real Estate is among the major asset classes available to investors. It offers significant advantages compared to other investment avenues such as stocks, bonds, cryptocurrencies, and securities. It’s also considered a comparatively safer investment as it is a hard physical asset that can be liquidated or sold if needed.
How does real estate investing compare with other investment avenues
Historical data shows that real estate investing compares favorably with other investment avenues. There is a low risk of losing capital in real estate investing as your investment is backed by hard physical assets such as a house or land that can be easily liquidated in case of a default.
Conservative + Traditional + Safe
Very few other investments offer the safety associated with real estate investments. Stocks, and cryptocurrencies, for example, are pretty volatile, and one may lose a significant chunk of their initial investment in these two asset classes.
Anyone who has watched the events of 2020 closely realizes how widely markets for stocks and cryptocurrencies can swing in just a few months or weeks. Real estate assets are pretty stable, and their value doesn’t go up or down so dramatically.
This price stability is another feature that attracts conservative and traditional investors to real estate investing, as many investors prioritize the safety of their investment over the possibility of generating a higher return.
Real Estate Investing vs. Stock Market vs. Crypto Currencies vs. Gold
Historical returns of real estate, stocks, and gold are pretty divergent in the US. There is no historical data available for cryptocurrencies as most cryptocurrencies, with the notable exception of bitcoin, are just a few years old. We have data going back decades for real estate, stocks, and gold that can give one an idea of the returns delivered by these three asset classes.
Another huge benefit is tax advantage. There is are many tax advantages when you invest in hard Real Estate – tax deferment, tax planning, 1031 Exchange for like properties. Not all of these benefits are transferred to investing in trust deeds or mortgage funds, but such funds have much more flexibility and advantages too.
One must also note that stocks and gold are highly volatile, and their prices can easily swing in the advent of any negative news, natural calamity, trade wars, or real wars. Real estate is often immune to such things and doesn’t undergo the frequent boom and bust cycles associated with stocks and precious metals.
How to Invest in Real Estate
There are numerous ways to invest in real estate. One can directly invest by buying a house, commercial properties, invest in real estate investment trusts, invest in trust deeds directly, or invest in trust deeds via a real estate investment fund.
What is Trust Deed Investing?
Trust deed investing refers to the practice of loaning funds to a borrower for buying or refinancing a real estate property. If a person wants to buy a house for $1 million and has only $500k, then they can take the remaining $500k from an outside investor, a trust deed investor, who gives the funds as a loan towards completing the purchase of the home.
The property owner agrees to give legal title of the property to a trustee of the lender through a deed of trust until the loan is paid off. During the duration of the loan, the property owner keeps the actual or equitable ownership title to the property and maintains full responsibility for the premises. The trustee is usually an escrow company, a bank, a loan servicer, or a title company. Most trust deed investments are short-term investments with an average loan tenure of less than five years.
Trust deed investing helps home buyers and real estate investors who cannot get a mortgage from traditional banks for any reason. Trust deed investment companies connect home buyers and real estate investors with trust deed lenders and serve as the bridge between these two parties of a transaction.
LBC Capital Income Fund: Your trusted partner for investing in trust deeds secured by real estate
LBC Capital Income Fund is a fund that offers trust deed investment opportunities to accredited investors who can invest a minimum of $100,000. LBC Capital Income Fund provides a stable and safe target return of 8%.
LBC Capital Income Fund underwrites and funds high-yielding, low LTV (loan to value) mortgages with the focus on balancing risk vs. return. LBC Capital offers an opportunity to invest your savings in a safe avenue with comparable or even better returns than those offered by stocks, cryptocurrencies, or gold without the volatility often associated with these other investment avenues.
You have the option to get monthly dividends from LBC Capital Income Fund. Investors can invest for diversification, retirement planning, or even passive income from their investments. You also have the option to transfer your 401(K) or IRA into LBC Capital’s self-directed IRA.
LBC Capital is a proud member of the California Mortgage Association and American Association of Private Lenders. LBC Capital is headed by Boris Dorfman, who has more than three decades of experience in the mortgage and lending industry and is also a certified real estate broker.
How LBC Capital has helped investors realize their dreams of stable income
LBC Capital counts several individuals, family offices, money managers, and pensioners among its investors. Hundreds of people today earn comfortable returns from LBC Capital Income Fund without having to stress about the price volatility or safety of their investments.
Relationships Matter. Respect. Trust. Care.
LBC CAPITAL INCOME FUND, LLC
4605 Lankershim Blvd., Suite 419, North Hollywood, CA 91602
Email: [email protected]
Phone: +1 818 761 7234
Company Name: LBC CAPITAL INCOME FUND, LLC
Contact Person: Boris Dorfman
Email: Send Email
Phone: +1 818 761 7234
Address:4605 Lankershim Blvd., Suite 419
City: North Hollywood
State: CA 91602
Country: United States