In today’s economic climate, investors face an important choice: sit on cash or lend it through opportunities like private mortgage lending? With interest rates rising, stock markets fluctuating, and inflation impacting every facet of life, the decision of where to place your capital is more crucial than ever.
At Fibonaii Group Inc., we believe that asking the right questions can guide investors toward the most strategic choice. Whether you’re new to mortgage investments or a seasoned investor, here are three key questions you should ask to determine whether sitting on cash or lending is the best move for your financial goals.
1. What Are the Risks of Holding Cash in Today’s Economy?
Cash might feel safe, but in an environment of rising inflation and increasing interest rates, it loses purchasing power over time. While sitting on cash may seem like a low-risk option, it actually exposes you to hidden risks. Inflation erodes the value of your savings, and the higher interest rates may reduce the purchasing power of cash.
Key considerations:
• Inflation is projected to stay above historical averages, meaning your cash may lose value over time.
• Traditional savings accounts and bonds are yielding low returns, making cash less appealing.
Rather than letting cash sit idle, private lending allows you to earn consistent returns, even as inflation rises. At Fibonaii Group Inc., our mortgage-backed investments provide an opportunity to earn steady income, protecting your capital from inflation.
2. What Return on Investment (ROI) Am I Looking for Right Now?
When considering whether to lend your capital, it’s essential to evaluate your return expectations. Private mortgage lending offers the potential for higher yields than traditional investment vehicles like stocks, bonds, or savings accounts.
Why private mortgage lending?
• Higher yields, typically in the range of 8%-12% annually depending on the risk profile of the loan
• Regular, predictable returns through fixed-interest payments
• Asset-backed security—loans are secured by real estate, providing an extra layer of protection
At Investment Solutions, we focus on matching investors with opportunities that align with their desired ROI, using a strategic approach to minimize risk and maximize returns.
3. Do I Understand the Risks and How They Are Managed?
Every investment carries risk, and mortgage lending is no exception. However, unlike stocks or commodities, private lending offers the advantage of being backed by tangible assets, such as real estate.
It’s crucial to understand:
• Loan-to-value (LTV) ratios to ensure the asset adequately covers the loan amount in case of default.
• Borrower creditworthiness and the potential for default.
• The experience and expertise of the mortgage administrator managing the investment. At Fibonaii Group Inc., we focus on comprehensive risk assessments, transparent communication, and strategic diversification across projects to ensure that investor capital is protected.
The Bottom Line: Cash or Lend?
The choice to sit on cash or invest it through private mortgage lending ultimately depends on your financial goals, risk tolerance, and the current economic landscape. If you want to protect your capital from inflation, earn higher returns, and minimize risk through tangible assets, private lending could be the right move.
At Fibonaii Group Inc., we help investors navigate these choices by offering customized mortgage-backed investment solutions designed to meet your needs.
📞 Want to explore lending opportunities with us? Contact Fibonaii Group Inc. to learn more about our investment solutions.
� Contact FIG Investment Solutions today! at info@fibonaiigroup.ca or visit us at https://fibonaiigroup.ca
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