Why do people invest at less than 1% returns? I believe it’s due to fear and education. People are more afraid to lose than focused on winning. Many do not know how to invest with greater returns. They don’t take the time to educate themselves.

Why Invest At Less Than 1%

Inflation is running at greater than 2%. Used car and truck inflation has been tracked at greater than 7%. Lumber prices have almost tripled from $400 for every 1,000 cubic board feet in April 2019 to over $1,100 currently. You can see inflation in almost anything you buy today. If you invest at less than 1% and have inflation at 2% or greater, the value of the dollar you saved has decreased. Many people have been told this but still continue on the same path. When I ask myself why? I can only explain it by fear of losing money and lack of education.

How To Achieve Greater Returns

To achieve greater returns you need to educate yourself and then take action!

First step – Decide what you want to achieve. What’s your goal? What type of investment do you want to invest in?

Second Step – Educate Yourself

• Read books on the subject
• Listen to podcasts
• Talk to & network with people that have invested in what you want to invest in
• Find or hire a mentor

Third Step – Take Action – At some point you need to go for it and take a chance. There is the risk of loss on most investments. Educating yourself and surrounding yourself with other successful investors will help give you the confidence to move forward. Learning to consider risk adjusted returns will be important in your learning journey.

Why do I share this story with you?

I was just like most. I was taught to put 10-20% in the stock market via 401ks, IRAs, ETFs, individual stocks, etc. It wasn’t until 3+ years ago when I started to educate myself and surround myself with investors in the multifamily real estate industry did I gain the confidence to invest in multifamily real estate. These other investors I met educated me that I needed to take control of my financial future. I needed to take control of my financial investments.

I’ve been in the loan trading industry since 2002 and knew the multifamily asset class extremely well but I had never invested in it. I did business with many senior bank executives that raved about the performance of multifamily loans in their portfolio and I still had not invested in multifamily real estate.

I’m thankful that I met these investors several years ago and thankful I gained the confidence to invest. These investments have done very well for our family. Returns thus far have exceeded 10% annualized and some have clocked in at 20-30% annualized returns. I want to share this news with others. There are other ways to invest your money other than money market funds at less than 1%. Educate yourself and take action!

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