Alternative Investing: How Private Mortgage Lending Stacks Up

By Brant Phillips, Houston Capital Group

Let’s be real—traditional investing just isn’t cutting it anymore.

Between the stock market’s wild swings, inflation chewing up CD returns, and uncertainty across the board, more and more people are starting to explore alternative investments. And honestly? It’s about time.

But here’s the catch: not all alternative investments are created equal.

Some are just different flavors of the same old volatility. Others offer the kind of security and predictability that investors are really looking for—that’s where private mortgage lending comes in.

Let’s break it down.

What Is Alternative Investing?
“Alternative investing” is a broad term that includes everything outside of traditional stocks, bonds, and savings accounts. Some of the most common alternatives include:

  • Cryptocurrency
  • Private Equity
  • Hedge Funds
  • Commodities (Gold, Oil, etc.)
  • Real Estate
  • Venture Capital
  • Private Notes & Loans (like Private Mortgage Lending)


They’re all considered “alternative” because they’re not traded on the public markets. But that doesn’t automatically make them safe—or smart.

Comparing Popular Alternative Investments
Let’s take a look at a few of the big ones and how they stack up against Private Mortgage Lending:

📉 Crypto & Speculative Assets

Risk Level: High | Predictability: Low | Security: None

Sure, some people have made money in crypto, but most retail investors are riding a rollercoaster they can’t control. It’s based on hype, speculation, and global events. There’s zero collateral and zero cash flow.

🏢 Private Equity & Startups

Risk Level: High | Predictability: Medium-Low | Security: None

These can work, but your money is typically locked up for years, and you’re betting on a company growing or getting acquired. Most startups fail. There’s no monthly income. All upside potential, but very little certainty.

🪙 Commodities (Gold, Silver, Oil)

Risk Level: Medium | Predictability: Low | Security: Low

Touted as a hedge against inflation, but you don’t earn income while you wait. You’re hoping the price goes up. It’s speculation again—just with a shiny metal.

🏘️ Private Mortgage Lending

Risk Level: Controlled | Predictability: High | Security: High

Now let’s talk about something with a track record.

When you lend on real estate as a private mortgage lender, you’re backed by a real asset. Your investment is secured by a recorded lien, and you receive predictable monthly income. You know your return is going in, and you’re first in line to be paid.

I’ve personally paid over 10,000 mortgage payments to private lenders in the past 16 years—without ever missing a single one.

That’s not stock market luck. That’s a strategy built on cash flow, collateral, and trust.

Why Private Lending is My #1 Alternative Investment

Here’s what sets private mortgage lending apart:

✅ Tangible security – Your loan is secured by real estate.
✅ Passive income – Monthly payments show up without you managing anything.
✅ Predictable returns – You set the terms upfront and collect consistently.
✅ Win-win model – You help provide affordable housing while growing your wealth.

When done right—with the right borrowers and safeguards in place—it’s hard to beat the combination of security and yield that private lending provides.

Final Thoughts

If you’re looking at alternatives to the market right now, I get it. We all want more control, more consistency, and less noise.

But not all “alternatives” are smart alternatives.

Private mortgage lending isn’t just different—it’s better. Safer. Smarter. And proven.

If you’d like to learn more about how this works—let’s talk.

I’ll walk you through exactly how this process works so you can earn real returns backed by real estate.

Brant Phillips

Houston Capital Group