Are you in retirement, or close to it, wondering how you’re going to make ends meet pulling from your portfolio? Well, you’re not alone if you’re staying up at night thinking about how low-interest rates are killing your investments.

In a practical and easy to read format, Gomez explains to investors the particulars of a little known, yet potentially lucrative investment technique that can handle the ups and downs of the stock market. Unlike stocks, the underlying security of private money lending is a tangible asset – brick and mortar, so there is another layer of protection for you, the investor.

But what is Private Money Lending? According to Gomez, it refers to a private individual or organization that lends money. Typically, when you’re looking for financing, you would go to a bank. With private funds, on the other hand, you’re going to an individual or organization that specializes in this type of lending. The upside of private money lending is that it’s less regulated, which means less red tape. The icing on the cake, he says, is that these investments have consistently generated 9 to 12 percent returns* – not bad considering stock market investments have averaged closer to 7 percent, and with much more fluctuations. We can’t forget the economic crash of 2008 when many stock market investments plummeted close to 40 percent.

In a nutshell, amid the 2008 economic crash, the Federal Reserve lowered interest rates to help boost the US economy, the author explains in fluid and well-organized chapters. The general thinking was to reduce interest rates to encourage people to borrow money, who then would go on to buy more products – all good for the American economy. However, those same low-interest rates translated to less growth for those in retirement. Private money lending offers an alternative strategy that could generate a “predictable, safe, and consistent income stream that this low-interest rate environment does not currently permit,” Gomez says.

No investment comes without risk, Gomez reminds his readers, so his bottom line advice for investors: do your homework (start with this book), find out who is offering the loan, and check they have a good track record.

Even though the content derives from Gomez’s doctoral research and dissertation conducted at Florida Christian University in Orlando, it’s not academic in style. In fact, you will find it conversational and accessible, with a thorough glossary of terms (e.g., origination fee, negative amortization, and Private Mortgage Insurance) and recommended reading to further your knowledge.

Whether you’re in your golden years relaxing on a sandy beach or fast approaching retirement, you will want to read Gustavo Gomez’s Private Money Lending: Learn How to Consistently Generate a Passive Income Stream.

*as of the book’s publishing (2015)


Private Money Lending Learn How to Consistently Generate a Passive Income Stream won First Place in the 2017 CIBAs for Instruction & Insight!