Have you ever thought about what it is like to be the bank?

And, by “be the bank” I mean like Wells Fargo or Bank of America…where you have people bring you money all day every day and then you get to lend that money back out and make fees?

Being the bank is a pretty sweet gig. Let’s think about this for a moment. At your local bank you willingly give them your money for little to know interest in return. They lend out that money on the long term (mortgages) at low interest rates 3%-4%, or on the high end (credit cards) 21%++.

Wow, being the bank is a really cool gig!

In fact when you think about it why would anyone want to give there money to the bank when getting little to no interest?!

Obviously, there is a need in our modern society to put our money on deposit at a federally insured institution in order to operate and transact in today’s world (write checks, do bill pay, use a debit card etc).

What if I was to tell you that your money on deposit at your bank is actually a liability on their balance sheet? Many of you may know this.

But, what if I was to tell you that your money isn’t near as safe with your bank as you may think? For instance if your bank was to go bankrupt the bond holders would get paid before the depositors!

Many of you may be saying but I’m insured up to $250,000 by FDIC insurance. Yes, this is true but did you realize that the FDIC has roughly $9 Billion it can pay out to depositors against $$$Trillions of dollars in deposits?!

Now, that’s a little scary if you ask me.

Of course it would require a banking crisis of massive proportions (can anyone say 2008?!) for our deposits to be in real jeopardy. But, it certainly can happen. And, all of us have been witness to this.

If you want some good cinema on this subject watch “Too Big to Fail” or the recent excellent film “The Big Short”.

I write you this post today not to scare you but to encourage you.

I want to encourage you to think about being the bank. Take control of your hard earned cash. Stop being lazy with it and leaving excess amounts of it sitting idle and making ridiculously low returns in CD’s, money markets or interest free checking.

So, how do you become the bank?

As a real estate investor one of the best and most secure things that you can do with your cash for great yield is to lend it to other investors.

Most investors use private money or hard money loans to do their fix and flip deals. These type of deals have always been around and always will be no matter what type of issues are going on in the market or society.

By being a preferred lender to one or more individual investors in your community you are providing a much needed service. Not to mention that you can make yields in the 10% – 18% range plus loan fees (points). And all of this secured against real estate.

To be secure you will want the LTV (loan to value) to be low enough such that if the borrower ever runs into trouble and you have to foreclose, there is plenty of equity there for you to finish the project and resell it.

Some of you should be doing this right now. You have cash sitting around and you can make these type of loans today in your investor community…and you should!

Others of you have the capital but don’t want to fuss with finding the borrowers, or dealing with the paperwork, or making sure that you have your hard earned money collateralized properly.

If you fall into that camp I would like to talk with you. I am in the initial stages of raising money for a new fund. This fund will be used exclusively for the type of lending outlined above.

The best part for you as the investor is that I want to share in the profits with you! If you are even remotely interested in receiving a high yield for your cash, secured against real estate then we should talk.

Send me an email to info@StreetWisePropertyInvesting.com and leave me your contact info and I will be in touch.

What better way to have your money work for you, make high yields, secured by a physical asset (not just sitting in your bankers vault) then to lend it to the hard working investors who are revitalizing communities across this country.

This is a true win win for everyone.