From JDS Properties Memphis/St. Louis
Potential Risk
The Money Box Account (real estate funding) is one of the most safe investments you can buy into.
If all this sounds good to you, but you are still unsure because you think there might be some risk involved, then we can assure you that there is definitely risk involved.[i] There is always risk involved with investing, but real estate funding is less risky than your IRA, stock, or mutual fund.
Here is what makes real estate funding so safe. First is that your investment is secured by a deed of trust on the property. You are acting as the bank and you have the property as collateral. You will have a lien in first position. Do your stocks offer you collateral? Your Money Box Account does.
Second is that the buyers will sign a quit claim deed, which deeds the property to you, to be used in lieu of foreclosure. That means that if they don’t pay, you just record the quit claim deed and get the property (at less than 1/2 of what we sold it for). If your mutual fund does not pay, does it give you something worth more than you originally have invested back? NO, but your Money Box Account does. I’ll explain. The buyer is buying a $60,000.00 property from JDS Properties for $30,000.00. You funded $15,000.00 to the buyer on that property, if you have to take the property back by recording the quit claim deed; you just got a $60k property for only $15k. Now you might be thinking “what the heck am I going to do with a property in Memphis?” And the answer to that question is nothing. What will happen if you do take it back is that JDS Properties will sell it again(unless you want to keep it) quickly, to an all cash buyer for around $25,000.00. So you will get your $15k back plus an extra $10k, which means that you actually come out ahead if they do default on the loan.
The third reason this investment is so safe is because JDS Properties is the property manager and JDS Properties will send you the monthly payment before we send any rent money off to the buyer. So you get paid first. Does your mutual fund pay you first? NO, but your Money Box Account does.
So to recap… Your investment is secured by the property, you actually come out better if they default, and you get paid first.
This sounds like a no brainer, doesn’t it? Contact JDS Properties today to set up your Money Box Account and start to successfully save for retirement now.
[i] Potential risks are not limited to: 1) damage to the property. (you have a loan in 1st position and are also listed as additional insured) 2) buyer does not pay taxes on the property (your loan is in 1st position and will have the opportunity to pay taxes before tax sale, also we can set it up so that the buyer pays the taxes to you) 3) buyer passes away or becomes handicapped in some way making them unable to pay (deed of trust has a survival clause stating that the next of kin is responsible for repaying the loan. 4) something happens to JDS Properties (survival clause stating that next of kin will handle the business of JDS Properties, or contact the closing attorney to make payment arrangements on your own) 5) buyer defaults (this actually works out better for you) 6) property value goes down (it is very, very unlikely that the value will fall below $15k and it is unlikely that the rent amounts will decrease by that much. Keep in mind that the value of these deals in determined by the rent amount they produce each month.)
