Invest Like A Bank

by J. Archer on December 2, 2013


How does a bank invest? What does this even mean? It means to buy assets instead of liabilities.

In a previous post, I discuss why your house is not an asset for you, but it is an asset for the bank. When you take out a loan for a home, the lender places your home on it’s balance sheet as a loan which bears a return in the form of monthly repayments. Month in and month out, you pay the lender while the lender sits back and does nothing but accept your money.

Your home loan is a cash flow asset for the bank.

Well, there is no reason why you can’t make money exactly like that. You can use your capital or savings to generate cash flow and avoid the pitfalls of inflation by loaning money much like your banker would.

Until now, most Canadian investors have only dabbled in real estate  south of the border due to the “Double Taxation” effect of  holding a property in the States as a Canadian. At Clear Vision Investment Group, we’ve designed a simple solution. Through our company you can invest  by loaning the funds you want to deploy south of the border with no direct  ties or responsibilities to an individual property such as management or landlording!

Our team in the States takes care of all the day to day operations and sends you a check each year.

This loan is repaid to you from rents received on properties purchased for cash flow income. Your loan then becomes a cash flow asset that you can use to augment your retirement or personal investment and savings accounts.

Here’s an example of what 10k could be worth in the future based on rate of return:

If you put 10k in a Savings Account, GIC, Canadian Bond, or other “guaranteed” return investment (most pay less than 4%), how much would you earn in 5 years?

10k @ 1% simple interest  over 5 years gives you ——  $10,500
10k @ 2% simple interest  over 5 years gives you ——  $11,000
10k @ 3% simple interest  over 5 years gives you ——  $11,500
10k @ 4% simple interest  over 5 years gives you ——  $12,000

NOTE: to keep pace with inflation you need at least 3%.

With a CVIG investment you can make 2 times more over the same time period!

10k @ 8% simple interest over 5 years gives you —  $14,000

The reason the banks are successful is that the understand the difference between assets and liabilities. And, they buy as many assets as they can in order to multiply their holdings. You can do the same by starting now with a small investment which is backed by cash flow real estate in an inflation resistant industry.

Contact us to learn more.






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