There are really 3 sides to a coin.

There are Really 3 Sides to a Coin.

Which side are you on?

You are likely receiving these emails because we have crossed paths at some point. Either through LinkedIn, a mortgage transaction, being part of the Portland Real Estate Investment Association (NWRIEA), or somehow we interacted through an email. However that happened, our common interest (excuse the pun) is we are mindful of financial dealings. Specifically, we are either interested in the interest we receive, or the interest we pay. I submit our real interest is on the third side of that coin.

The third side of a coin is the side that's in between the broader sides. In this sense, we are attempting to balance the interest we pay on the money we borrowed, against the interest we receive on our investments. Hopefully, the interest we receive is greater than the interest we pay. This becomes more significant once we no longer have employment income to offset the interest payments. The desire to live on passive income should be a goal prior to reaching retirement age. In fact, the sooner the better, right?

I've been thinking about what interest rates might look like over the next 5 years. Being in the mortgage industry as well as an active investor, rates play a considerable amount of importance. I ran across this article from Kiplinger that suggests interest rates will stay low for the foreseeable future. While that may bode well for borrowers, what might that mean for investors? How might this affect the returns in our 401k's or IRAs? Do you think the equity markets are ready to soar, or does the volatility in stocks make you nervous?

https://www.kiplinger.com/article/business/T019-C000-S010-interest-...

Looking at a snapshot of where Treasuries and lending rates are today, with a short look-back, we again see both sides of the coin, the balance between what we pay and what we earn.

https://money.cnn.com/data/bonds/index.html

This is why I choose to weight my investments towards promissory notes secured by real estate. I focus on existing mortgages and structure my acquisition price to produce a targeted yield, regardless of the actual rate on the note. Even though the interest rate on the purchased loan could be 4 - 5%, my acquisition price is calculated at a discount, thus increasing my yield. It's a fascinating process that I'd enjoy talking with you about.

As we now are moving towards the end of the 2nd quarter of 2020, and all the volatility in our traditions investing vehicles, I encourage you to consider an alternative. As I've said in prior messages, and articles I've posted on the Funding Factors Facebook page, opportunities in note investments are sprouting at a very good pace. This might be a great time to learn more.

https://www.facebook.com/fundingfactors/

Thanks for reading. Hopefully, your coin flip lands on the rounded edge with balance.

Cody L Cox
Note Investor
Cody@FundingFactors.com
Office: 503-985-6293
Toll-Free: 866-285-2729

Please note, this is neither an offer to sell any security or an offer to purchase any security. Nothing in this communication is intended as legal or specific financial or investment advice or intended to address the objectives or needs of specific individuals. If you require legal or specific financial or investment assistance please consult your own attorney, financial planner, or Trustee for legal or financial advice.