How does the bank use your money?

When you deposit money in a bank they may offer a nominal interest rate.  These interest rates are usually less than one percent.

What does the bank do with your hard-earned money?

The bank takes your money and lends it to someone else at a much higher interest rate.

For instance did you know that a 6% mortgage is an actualized 100% loan!  The fact is, a $100K mortgage at 6% earns the bank $115K in interest alone!  (check the facts here)

On top of all that, the bank can loan 10X your money due to federal regulations.

Let’s break that down. . .

  • You deposit $100K in the bank and they give you 1% interest (if you are lucky).
  • The bank can then make TEN $100K mortgages.
  • The bank makes on average 100% back on those mortgages.

What this means to you . . .

  • The bank gave you $1,000 in interest while they made much more than a million dollars off your money.

What can you do about this?

You can ‘become the bank’ by investing in real estate.  You don’t have to go out and find the homes or even plunge toilets. You just hold the loan, long or short term, on the piece of real estate and let us handle all the details.

When you become a private investor, you take the bank out of the equation.  You become the bank on a house and you get the return rates that you deserve.

Click here to learn how you can get started as a private investor with as little as $25K.

 

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