Did you know that there is a very safe investment that produces consistently high yields while at the same time provides security and liquidity? I'm referring to an investment secret that banks and financial institutions use. Smart people have been utilizing this investment for years. This secret is very common in real estate circles and has been going on right under your nose in every city in America. It's called mortgage lending. So how is that a big secret you might ask? The secret part of this is that you can make this same type of investment and make far more than a regular bank does!

If you have funds to invest but are afraid to try your hand at the stock market because of the massive losses experienced in recent years, private mortgage lending might be the perfect investment tool for you. As a private lender you can make a high rate of return on your investment. How high? How about 10, 12, 15% … and sometimes even higher!

So how does this work? Real estate investors often come across great deals and they need to get them funded quickly in order to close the deal. We are referring to investors who buy run down properties at a deep discount, fix them up and then sell them for a great profit. These "rehabbers" need access to money quickly and can't wait months for a traditional bank to wade through all the paperwork.

Now you can get in on this lucrative business without even picking up a hammer. Basically, you become the bank in a real estate purchase. You lend your money on a piece of real estate the same way that a bank does. The difference is that you can make a lot more than a bank and … your investment is much safer!

Since you have funds ready and waiting to be invested, you are a real estate investor's dream come true. Investors are willing to pay you high rates of interest for quick access to money when they need it in order to pick up a great deal. Plus, these rehabbers typically only need to borrow 70% or less of the house's value in order to buy and fix it up.

So how is this possible? These investors know how to spot properties that need work, and how to find sellers who want to dump their property and are willing to accept a deeply discounted price just to get rid of it!

What this means to you as the lender is that your money is secured against a piece of real estate for only 70% of what it's worth. Should you ever need to recover your funds you can take back a piece of property worth far more than the amount that you put into it. This "equity cushion" allows you to sell the property, if necessary, and still make money. Even banks aren't that secure in their investments. Banks can get in trouble because they make loans at 90%, 95% or even 100% loan to value ratio. They leave no room for error.

Most of these rehabbers only need the money for a short period of time. Since they are buying the property to fix up and resell, they do not need a 30-year mortgage as a regular home buyer would. Therefore, you get your investment capital back in a short period of time at a much higher rate of return than a CD held for the same amount of time.

When investing your funds make sure the transaction is set up with an attorney or title company. Never hand an investor a check. Make sure the investor gets title insurance and property insurance with you named as "loss payee" to protect your investment. Know what you are getting into and what the investor intends to do with the property.

After providing the funds, you will get a mortgage or trust deed in first position recorded against the property. You now have used the same technique that the banks use except you are making a much better return and a much safer investment.

Want to earn 15% in your IRA or pension plan? Making real estate loans is now a widely accepted use for retirement funds. Now you can loan out these funds that were previously unavailable for you to use, plus make them grow tax-deferred or tax-free! While there are limits to how much you can contribute to an IRA each year, there are no limits to how much your IRA can earn. You're not contributing funds, now you're investing those funds!

Private mortgage lending is a great way to build wealth that most people aren't even aware of! Now you can take control of your IRA funds, pension plans, savings accounts and CD's and earn high yields safely and securely. While others are complaining about the low rates and losses they have incurred, you can be earning a consistent return of 15% or more!