Updates

FEB_Update2

February 2021 MyConstant Update

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We are off to a new month (it is actually almost over) and it is time for my February update to the progress I am making with MyConstant. There are always a few changes that the site makes to the platform and this month is no exception.

A couple small changes to the platform, we see that the Flex account is still around but there is not really a Flex tab. The name has also changed to reflect more accurately what the account does and can do. It is now called “instant access” and it is really the same thing as the Flex, any money you have in the platform is earning the 4% APR compounded every second. I just had a couple thousand dollars worth of loans mature and since I did not have the auto reinvest button turned on the money went back to my flex and I can really see the balance moving.

I am moving this month which as you probably know is one of the worst things we have to do and always costs us more than we think it will. This is why I am keeping a couple thousand out of the lending pool until I know how much this is going to cost me. On the bright side, every time I move I look at it as a chance to learn a new place and an opportunity to lighten my load. I see stuff that I am pretty sure I have not used since the last move which I am either selling or donating.

One thing that has not changed is the excellent return I feel I am getting on my Bitcoin. I am hodling for when Bitcoin hits $100k or more a coin. So, right now I am just racking up some interest on something I am saving anyhow. I actually did get a little monthly earnings report from MyConstant and just for having my (small) Bitcoin balance sitting in the platform I made almost $17 in Bitcoin interest.

I have about $800 invested in Bitcoin that has gone up in value to around $2,800 worth of Bitcoin and I earned 0.00046942 satoshi which is around $17. Now the really cool thing is that they pay me interest in more Bitcoin so when the value spikes that “free money” becomes worth even more. Free money is one of my favorite things and I will keep on earning more crypto with MyConstant since this is really a passive income stream that I believe will really pay off in the near future.

You can also see I was curious about the PRV token and I did switch my earning from the 8% BTC rate to the 11% PRV reward just for a couple of days so I could say I have some PRV. As you can see in just a couple days of earning I snagged 0.86502870 PRV. I still do not know what I will use the PRV token for so I am planning to keep my interest earning in Bitcoin.

Speaking of Bitcoin as I write this article (mid Feb) Bitcoin has hit yet another all time high and broke through the 50K mark. This was likely due to more institutional investors jumping into the game and buying up more of the crypto. I am sure that Elon Musk’s 150 Billion dollar purchase was also a contributing factor.

I keep waiting for a decent pullback on Bitcoin before I purchase more but I feel like the more I wait the less there will be an opportunity to buy on the dip. I want to increase my holding in MyConstant since the little bit I do have is still building. There is one sticking point for me and the transferring of Bitcoin into Myconstant. The minimum I can transfer is 0.005 which equates to about $250 worth of Bitcoin so I am not yet able to gather all my small balances from all the faucets and sign up bonuses just yet.

Etherium is another avenue I am going to pursue and the minimum deposit amount is 0.1 ETH which works out to be around $181 which is a little easier to get started earning that sweet 8% APR on the idle crypto.

As always if you are looking for a referral code I would greatly appreciate you using mine. If you are holding crypto where do keep it and what kind of return are you getting? Please leave a comment below and let us know.

Thanks for reading.

I am turning off the option to comment since I have been getting spammed in the comments. Really I have had over 1,000 comments trying to advertise online pharmacies. I did not realize those were still a thing. 

Ties

Cutting Ties With Groundfloor (For Now)

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Well as you might have been able to tell from my featured image I am cutting ties with Groundfloor. I do not know if this will be forever but I am not investing in Groundfloor for the foreseeable future.

 

What is Groundfloor?

Groundfloor is a really cool concept that brings investors (lenders) and borrowers together in order to flip or rehab properties. This is one of the best sectors of the peer to peer (p2p) lending space largely in part because the the loans are backed by a piece of real estate.

 

Groundfloor allows you to invest in a “loan” for as little as $10 allowing even those with humble investments amounts to diversify over many different loans. This is one of the lowest points of entry into the p2p lending space that you will find.

 

The returns are decent on the platform, not the best but certainly they outperform many other platforms out there today. The platform also allows you to search for the time horizon that meets your needs. For me I search for the highest return with the shortest amount of time remaining on the loan. I prefer the higher rates but like to cycle my money more often so, I appreciate the flexibility.

 

There are some good aspects to the site and I do not want to completely flame them as a company. I do feel that for some reason, either the platform is too large or is not properly managed they fall short in two key categories.

 

Communications from Groundfloor is mediocre at best. I continue to watch the properties (virtually) that I invest in. I track the progress and I watch them on the different real estate sites. I track the listing prices as well as any reductions. In some instances I see the reduction in listing price before there is an update on the platform.

 

Due diligence is really the responsibility of the investor but that being said there are some things investors need to rely on Groundfloor for. Things such as who the borrower is and their past performance which is reported on the platform. I believe that this makes Groundfloor one of the better sites in that they have the ability to report the past performance (with Groundfloor) on the site. I am curious about the reporting since often times the platform will indicate that the borrower has completed X number of projects although there is no further information in relation to the timeliness of the completion. The borrower could have completed four projects but three of them could have gone past the maturity date. There appears to be no way to verify the timeliness of payments.

 

In closing I am still a huge fan of the platform’s concept and the structure seems sound. I am just concerned that some of the borrowers may be more of a mom and pop operation who may not be able to deliver on the timeline indicated on the site. At least the handful of loans I have invested in have had small issues meeting the maturity date.

 

I do not want to group Groundfloor in the same category as Prosper but my success rate is starting to look pretty similar to what I had experienced on Prosper, and I am sticking to “B” rated loans and above.

 

You will have to determine for yourself whether or not Groundfloor will work for you and allow you to achieve your investment goals. Right now Groundfloor is being shelved as there are better opportunities available to me right now.

BITCOINJAN

Update: January 2021 MyConstant p2p Lending Progress

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First of all I want to wish everyone a Happy New Year! I know we have all set some great investing goals for 2021 and I hope you achieve yours.

 This is my second MyConstant monthly update and I am planning to continue writing updates every month for a year to keep you guys in the loop as to how the site is working for me.

 There have been a couple changes, not only in my financial situation but also with the website and app. The site and app have both been updated and there are a couple cool new features that I will talk about. I have used some of them but there are some that I have not yet tried but can still explain what they are and how they work.

Gift cards have now been added to the site which is pretty cool. The best part is that you can save a little bit on the purchase of the gift card, actually up to 3%. There are currently over 40 different options (retailers) available and some pretty big names are available. For example there is an Amazon cash card and these days almost everyone is buying something from Amazon. Also there are food options like Dominoes Pizza. Very cool, cause I mean come on who does not like pizza?

 

 

 

 

 

 

 

 

 

The second new feature is called Feed and Give. Feed and give is a little emoji dog that you feed. You do basic tasks which give you different amounts of food. For example if you deposit you get 1.5 lbs of food, if you just do a daily check in you can get .5 lbs of food and when you get 3 lbs you can feed your little dog. There is a feature to compete with friends but the coolest part of this feature is that you can donate the coins you earn to charity. I think this is something great that MyConstant has rolled out as a way to give a little something back.

 

The third and probably the best is the Prize Wheel. Since MyConstant is now two years old (Happy Birthday BTW!) you can send them a Birthday wish and complete a few other tasks to earn spins on the wheel. The grand prize on the wheel is $1,000 USD. I have not won the 1k prize (yet) but I have won a ton of membership points (which can be used for more spins) or used to upgrade your status to a gold membership. I will share that I did win the $1 prize. I hope my long lost relatives do not come out of the woodwork looking for a handout.

 Those are the three new features on the site as for me, I set a goal to get back up to where I was previously with my investments and I was able to put another $4,000 into the site. I have most if it invested in the 30 day 6% APR loans since I like the liquidity and a little bit in my Flex account.

 You might be wondering why I bother to keep a little in my Flex account when the rate is 2% higher in the 30 day crypto backed loans. Well there is always the hopes of snagging one of the highly lucrative secondary market orders. If you think this sounds complicated let me tell you the hardest thing about those is the timing. They open them up and you just click on the ones you want to try and fund. All the ones who want in are placed into a “pool” of investors and one is chosen. They are only open for a few minutes so I have the notifications turned on so I can try and get some. I have been successful on some in the past.

I might have to pull some money out next month as we are moving to another house and there are always extra expenses involved with that. I am hopeful that I will be able to replace whatever funds I pull out very quickly though. So right now MyConstant is kind of where I am keeping my extra cash so I can earn interest at a much higher rate than any bank could ever offer right now.

Finally we have all seen the crypto market on fire and next month I will talk a bit more about the changes made to the crypto interest and give an update on how much interest I am earning on my Bitcoin. I will give you a hint, it is doing pretty darn good right now.

As always I encourage others to sign up and get in on this greatness. If you use my referral link I do get a small bonus for you signing up through the link which costs you nothing. Thank you for reading I appreciate it and happy investing.

 

Bitcoin_in_Hand

MyConstant p2p Lending Update December 2020

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If you do not know by now I am a pretty big fan of a rather new peer to peer (p2p) lending site that offers more than the typical unsecured p2p loan options. I am starting a new series of web articles about MyConstant.com and I will be giving monthly updates. I plan to do this for a year, so that I can track my progress of building up not only #Crypto mostly #bitcoin but also to build up some USD.

This would probably be a great spot to insert my goal and outline what I hope to accomplish with this platform. So, I want to be able to build back up to at least $5,000 USD to continue to invest in the crypto backed loans at the current rate of 6% which will bring in $25 monthly. Additionally I would like to make some moves with my crypto holdings which would bring me up to at least 1/10th of a Bitcoin by the end of next year. So I threw down the gauntlet on my goals and I am confident that by using MyConstant I will not only achieve those goals but most likely I will exceed them. (Check back next month to see where I started and how much I have improved.)

You may have read some of my previous postings about MyConstant and how the platform functions. In case you have not you can either read one of them here or here.

In essence MyConstant is a p2p lending platform. I know what you are going to say. I had bad experiences with p2p lending in the past as well. In fact I have a few sub-standard experiences with Groundfloor I could share with you right now. I am telling you though this one is different. That is what everyone says though. Hopefully after you see the progress I am going to make with MyConstant you will be convinced and will give it a try for yourself.

I think it was the Oracle of Omaha, Warren Buffet, himself who said “the number one rule of investing is to not lose money” and the number two rule was “never forget rule number one.” Or, something along those lines. Now I personally cannot say that I have never lost money on an investment. I can say that thankfully I have made more than I have lost. I can also say that I have never lost a single red cent through the MyConstant platform.

My whole mission is to share information with other people that they could use to increase their wealth. I truly believe there is enough wealth in the world for everyone.

 I do not sell, push, or promote any get rich quick techniques or promise that you can double your money overnight. I can assure you though that with the MyConstant platform everything is explained pretty clear and what you see is what you get. I have invested several thousand dollars at a time in this platform and again, I have never lost a penny.

A quick disclaimer: I do have referral links in my articles and in the future I plan to have an affiliates page built into the site. But once again the reviews I write are my own thoughts and my own words, I share my honest opinion and if a site is great I want to pass that along. If a site is shady or I believe it to be a scam I am not afraid to point that out as well. I will have an article shortly about a crypto trading platform that scammed me out of $200.

As I mentioned I had several thousand dollars invested in MyConstant. I say “had” because I had to pull some money out of the platform to pay for a purchase we made recently. This was pretty simple and I had my money back in my account in a couple days, typical for an ACH transfer.

I am someone who does not like debt at all. I have been drowning in debt and I have been debt free (including my mortgage). I will say that debt free is definitely a better way to live your life. If you are not debt free (yet) I hope you can experience that freedom soon.

One thing that MyConstant does is it allows users to store cryptocurrencies on the site and pays interest on that digital asset. Right now I only have Bitcoin stored in the site which has been on fire during the end of 2020. I bought into Bitcoin when it was around $8,000 USD to one Bitcoin. I am always leery of these digital currencies and did not purchase very much. All in I think I have about $600 invested. With the current price of Bitcoin hovering ever so close to the $20,000 mark I could sell half of my Bitcoin and recoup 100% of my investment.

If you follow me on instagram you might have seen the post where I showed everyone the email I got from MyConstant indicating that I earned $10 USD in Bitcoin through interest. My current holdings in BTC are not substantial but the current rate of 9% APR compounded every second adds up. I plan to keep storing some BTC on the site and will continue to let that balance build.

I can say that if you are not interested in buying Bitcoin there are ways to earn crypto for free. How you ask? Well, there are sites that are called crypto fountains. You basically get a free click usually every hour or so and they reward you with small (like really small) amounts of coins. When you have enough you can transfer to a wallet. Once you have .005 worth (as of Dec, 2020 that is about $90-$100 worth) you can start earning that 9% APR.

There are many out there who do not want to even mess with crypto and I understand that. There are other ways to earn decent interest that I will cover next month. So, be sure to check back often.

Thanks for reading, please leave a comment or any questions you might have.

Cash

Loans at 100% Loan To Cost

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I know I have been spending a lot of time writing about MyConstant but I wanted to add another update to my blog about another p2p platform that I have been using and I mentioned before that I was going to shift away from Groundfloor for a couple reasons. (Obviously I ended up keeping some funds rolling through the platform) If you want to sign up I would appreciate if you used my referral link. 

So if you did not read my previous post about Groundfloor I will give you a quick rundown of what it is. Groundfloor is a p2p platform that connects borrowers to lenders and the loans are usually backed with real estate as collateral. Sometimes the loan is being used to rehab and resell the home used as collateral. Other times there is a home used as collateral to rehab a separate home. In both instances there is some real estate backing the loan in the event that the borrower defaults then the home could be foreclosed on and the proceeds of the home sale would be used to satisfy the loans.

What I really like about this is that Groundfloor allows very small investments (as small as $10) allowing someone to potentially diversify into many different loans. I think the general loan to value (LTV) is usually in a range that would allow for a fairly quick sale to satisfy the loans. The LTV also ensures that the borrower has some “skin in the game” 

One of the many things I use as criteria for my loans is the option to only loan in states that have a non-judicial process for repossession. Basically these are states where the whole repo process does not need to go to court which can significantly increase the time line. Another thing I consider is how much skin in the game the borrower has. Generally the more equity the borrower has put in the more serious they are about not defaulting on the loan. 

I think that Groundfloor has decent rates of return on the loans and you are able to find an array of different terms. I generally search out rates that are above 7% and have terms of less than six months. Groundfloor is open to non-accredited investors so pretty much anyone has the opportunity to invest in these deals. I think this is a great option for people who are just getting started and may not have a lot of extra money to get going.

There is a new option available on Groundfloor called Loan100 which I think benefits the borrower more than the lender. This particular loan allows for a 100% Loan To Cost (LTC)  but is reserved for lenders with a long track record with Groundfloor. Basically Groundfloor is allowing borrowers to borrow the entire cost of the rehab. 

This is great for borrowers and allows them to move quicker on deals and potentially reduce time between projects. Some investors might actually prefer these loans since they will undoubtedly be reserved for only those borrowers with impeccable track records, making them much more likely to repay and repay on time. This is an opportunity to invest in loans for borrowers with an excellent track record.

Would you loan money out at 100% LTV?

Thanks for reading and be sure to leave a comment below to let us know what you think about this 100% Loan To Cost opportunity.

 

 

 

Money Machine

Possibly My Last MyConstant Review

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This is my third review of the MyConstant platform. Will this be the last time I do so? Read to the end and find out.

This is one more update to my experiences with the MyConstant peer-to-peer (p2p) platform and here I will highlight some of the things I like and a couple of the things that I dislike.

First of all, if you have not read my previous posts on my constant you can check them out here and here. MyConstant, for those of you who do not already know is a secured non-custodial p2p lending platform responsible for linking up investors with borrowers and do so by cutting out the middle man (the banks). As a side note, I am trying to build my amount of referrals up (Sign up here) and I am compensated for that. I just wanted to be transparent about that but this is a site that I do personally use and have several thousand dollars invested through the platform.

 

These are my current active loans with MyConstant. They are all 30 day loans made at 6% APR.

The loans on Constant are underwritten and secured by an escrow system that stores cryptocurrency as collateral. So, an example would look like this. Tom would like to borrow $1,000 for 30 days. Tom would deposit a crypto coin such as Bitcoin (BTC), Etherium (ETH), or BNB (A coin developed by Binance in 2017). You might be adverse to dealing with Crypto for several reasone, but do not worry you do not need to get into Crypto anything in order to enjoy the returns MyConstant is offering. The key here is that Tom needs to deposit $1,500 USD worth of the coin as collateral. This is necessary due to the volatility in the crypto markets and ensures that the collateral could be sold to repay the loan in the event of a default.

Therefore, Harry wants to earn interest on some of his money so he loans $1,000 to Tom for a 30 day term at 6% interest. This is all done anonymously through the MyConstant platform and completed through a smart contract. In the event that Harry does not pay Tom back his principle, Tom’s crypto is sold and Harry gets repaid his principle and interest. Furthermore if the value of the collateral is diminished through market conditions, the crypto is sold to pay Harry back.

*MyConstant does allow users to top up their crypto in the event that there is a big swing in the value and allows the loan to continue without the crypto being sold.

But why would I put up my Crypto as collateral? Why would I not just sell the Cyrpto and use those funds instead of taking a loan? There are many people who believe that the value of Crypto will increase significantly which would require them to have to buy more Crypto and miss out on the price increase.

I really like the idea that my loans are collateralized. I have used other p2p platforms in the past and have been burned. You can read about it herePeer-to-peer lending, is it right for you?. Too often p2p platforms fail investors by a lack of due diligence which leaves us with losses.

I also like that I am able to chose the term of my loan. Loans are available in 30, 90, and 180 day increments with the interest rates set at 6%, 6.5%, and 7% respectively. Personally I prefer the shorter 30 day terms which I feel provides me with a more liquid position allowing me to invest in other things should a hot opportunity present itself.

MyConstant offers different rates for different lengths of time.

I wanted to try out the loan aspect of MyConstant so I went took a 30 day loan and used some of my BTC stored on the site as collateral. Now here is where I come to the point I am not a fan of. There is a matching fee of 2.5% which is OK because the site needs to generate some revenue in order to keep running. There is also an early repayment fee. I chose to terminate my loan early because I really did not need the funds, I just wanted to check out the function to have a better understanding.

The early repayment fees look like this: If you repay the loan before 3/4 of the term you will end up paying 50% of the interest that you would have incurred if you took the loan to term. If you repay your loan after 3/4 of your term (up until the due date) you will pay 100% of the interest for the term. If you repay late you will incur an additional 10% of the total interest due. I will say that there are multiple warnings and notifications of the fees before you repay any of the loans so they get a plus for the transparency.

I have pretty much covered the 4% return on the Flex account in my other articles and anyone who has ever had money in a traditional bank in the past decade knows that 4% return on your idle cash completely destroys the rates that any bank or credit union is currently offering. That also includes rates on Certificates of Deposit (CDs).

There is one more part of MyConstant that I would like to cover, and this is probably the most lucrative opportunity on the entire site. That special little portion is called the secondary market. These are where some people are willing to sell one of the loans they are invested in and get their funds back early. You might be asking yourself why you would want to buy one of those short term loans. The deal with these is that the interest rates are very high. Let me say that again. The interest rates are very high. I have seen rates as high as 137% for a few days term. Now these are APRs so that is a yearly percentage which you will only be able to earn the rate for a few days.

The way MyConstant does this is they open the option up to diamond level members (invest 100K within 180 days) and they get the first shot at trying to get these loans. MyConstant then open up the loan to all members for 10 minutes. At the end of 10 minutes the pool closes and one of the entrants is chosen (at random) to fund the loan. I have seen pool sizes of 15-30 people, so I feel confident about the odds. The problem is that they seem to always come between 7PM and 1AM and you have to be quick, 10 minutes goes by quick when you are not in the pool and very slow after you are in.

I have yet to win one of the secondary market loans but I am confident that once I reach diamond status I will increase my odds.

My final thoughts on MyConstant are pretty much in line with what I have thought since I started using them. I am a huge fan of MyConstant and I think they offer one of the best ways to grow your money securely. They only require $10 to get started with a Flex account and $50 minimum for the Crypto backed loans. I started small because I wanted to get a feel for the site and make sure it was not a scam. I now have several thousand dollars in the site that I am continually rolling over into new loans and I am thoroughly enjoying watching my money grow.

So, will this be my final update on MyConstant? I do not think so. I will continue to use this platforms as I think this is the best one I have found and once you get the hang of it, the site is easy to use.

If you have any questions reach out or leave a comment. Thanks for reading.

 

 

 

 

 

US dollar Bitcoin

An Update to MyConstant

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I wanted to update you on what I have been doing with my constant.com account and share some of my thoughts on how the site is working for me so far.

I came across the site after a contact on instagram had mentioned it, that was about a month ago. There are several different aspects of the site and different advantages to each of them but I will just talk about the ones I have actually tried.

If you head over to the site and get past the Know Your Customer (KYC) requirements you will see that you are able to link your US bank account to the site. I know that some people are sometimes hesitant to provide personal information but providing your information helps protect against fraud and other illegal activities like money laundering.

Additionally the ability to link your bank account is great because it allows you to send money through an ACH transfer. You are also able to send a wire transfer but honestly my bank charges way too much for wire transfers. 

Zelle is a service which allows you to send money back and forth between US bank accounts and is usually pretty fast. I have Zelle but my issue is that mine is connected to a different bank account and Zelle had given me issues in the past while trying to connect multiple bank accounts so I don’t use this option but it might be quicker than the ACH transfer since it will take a couple days to get the money into your Constant account.

I am always skeptical in the beginning and I only transferred $60 as a “test run”. Once my first deposit hit my constant account it went directly into my “flex” account. 

I really like the flex account for two reasons. The first reason is that any funds in the flex account earns you a %4 return. We all know that the way current interest rates are it is impossible to find that kind of a return in any traditional account. 

The second reason I really like the flex account is the fact that this money is earning interest and is compounded every second. You might be curious what that would look like. Well, depending how much money you deposit you can literally watch the money growing. 

Something that is really cool, and I wrote about this in my first article about Constant is that they actually give you a trial deposit of $3,000. That really gets the interest machine cranking. 

Another feature that Constant has and that I have boosted my deposit level is they give you interest on three different crypto coins. The current rate is set at 9%. So, if you are like me and have a little crypto sitting in your wallet earning nothing you could be raking in 9% on that idle crypto.

The concept of giving interest on crypto deposits is something that others are starting to adopt and I think it will continue grow in popularity, especially as crypto becomes more mainstream. I will add that the others sites that are offering a return on crypto deposits are not as high as Constant’s return.

As with the Flex account the interest on your deposited crypto is also compounded every second. The counter for the crypto does not move as quickly as the one in the Flex account but if you watch it for a minute you will actually see it increasing. 

I currently have a small amount of Bitcoin (BTC) stored with them that I am holding onto in the hopes that the value spikes in the near future. If the value does shoot up to my personal sell point then I am able to transfer it out and sell it right away. 

The thing about the Flex and the Crypto accounts is that these are highly liquid, meaning you can withdraw them whenever you would like. There are no delays, lock ups, or fees which you will not find with some of the other sites who are offering similar opportunities. 

For me the whole idea of not having fees is great, and something I am always searching for. Too often sites will add a small fee to whatever plan they are offering and although it might not seem like much in the beginning those fees carnally add up over time. 

There is one more feature that I am currently using through constant that I am stoked about. It is the ability to loan your money from your Flex account at an even higher rate than the 4%. 

Although I have made several p2p loans through this portion of the site, I have yet to have any of them reach maturity. I think it would only be fair to write about this feature once the loans have gone full circle. If you check back in a couple weeks (mid September) I will have an updated post about how this is working for me.

Thanks for reading, if you enjoyed this post please share it with a friend. If you have anything to add or have more questions leave a comment.

Dividends are Flowing

Update on Cardone Capital

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Update on Cardone Capital

I wanted to write a few words about my update on Cardone Capital, and share with you how my investment is doing. I have seen quite a few negative videos about Cardone Capital and Grant Cardone. Many people are making videos and saying that the whole thing is a pyramid scheme and/or a scam.

I have only been invested in Cardone Capital for a short time and can only speak to what my personal experience has been. Since I am a new investor my experiences are unique to me and my situation.

Know what’s going on and read the documentation

When someone first invests money with a project like this it takes a little while for the funds to get transferred and applied to the investment. An investor will not earn any returns until said funds are actually applied to the investment. Your investment will begin accruing interest the day it clears escrow.

Beyond the time it takes to transfer and apply the funds there is going to be some more time on the back end to actually receive any dividends. Specifically it will take a new investor 60 days to start receiving dividend due to National Automated Clearinghouse Association (NACHA) regulations.

Additionally many dividends were suspended due to the COVID-19 pandemic. I do not think this is unreasonable due to the uncertainty surrounding the state of the economy. I am invested with more than one of these companies and they also have withheld dividends during this time.

It should be no surprise that the fund managers are going to take care of the debt service obligations first. If you are investing in these types of deals it is very important to understand how things will work in times like these. There are also likely some requirements in regards to the amount of cash reserves they are required to have on hand and the safe bet would have been to ensure that there was a large enough buffer to service the debt.

These deals are leveraged

Another common theme was concern about the amount of debt held on many of these projects. Something to understand about these deals is the way they are structured. To summarize it as quickly as possible, it goes something like this.

1. Buy an older property in a great location that may have a lower than average occupancy.

2. Increase the property value by making it look nicer, making upgrades or renovations, and add some amenities.

3. When the property is nicer and has better management the rents and occupancy are likely to go up.

Often times these deals are financed on an interest only loan. This gives investors more cash flow and when the term of the loan is up it can either be sold or refinanced. Sales prices are often tied to how well the property is performing, better performing real estate commands a higher price. This is a common strategy and it should not surprise anybody that Cardone Capital uses this strategy as well.

Bottom line

Before investing with one of these companies know what the policies are and know what your expected return will be. I am (so far) happy with my choice to invest with Cardone Capital as they have been the first ones to start paying dividends again.

It can be very frustrating to open your banking website and not see the dividends in your account. Always diversify your portfolio in the event of a dividend being suspended or cut. One final thing to remember is that these are investments, the greater the return generally means greater the risk and it is even possible to lose money on these deals.

This was my update on Cardone Capital please share this and leave a comment below.