📉 The Market Crashed. And you Slept Fine…That’s the Power of Private Lending
Let’s say you’ve got $100,000 sitting in your account and you want to put it to work.
You’ve basically got two choices:
Option 1: Hand it over to Wall Street, cross your fingers, and hope your financial advisor’s “diversified portfolio” works out.
Option 2: Become the bank — fund a private mortgage at 8% annual interest, secured by real estate you can actually see, touch, and understand.
Let’s break it down.
The Numbers (10-Year Comparison)
Investment Type: Wall Street (S&P 500)
Average Annual Return: ~7% (historical avg)
Total After 10 Years: $196,715
Risk Level: High volatility
Control: None
Collateral: None
Investment Type: Private Mortgage Lending @ 8%
Average Annual Return: 8% fixed & secured
Total After 10 Years: $215,892
Risk Level: Low to moderate
Control: Full control
Collateral: Real property
*By the way… there’s nothing stopping you from lending at 10% interest.
If you did, your investment would grow to $259,374 — that’s $62,659 more than the stock market over the same period.
Assumptions:
- Both start with $100,000
- Private note pays interest annually (no compounding — conservative model)
- S&P return based on 10-year historical rolling averages (including recessions)
The Sleepless Night Quotient
Let’s be honest — numbers are one thing, peace of mind is another. Let’s compare and contrast the two options further:
Backed by real, hard collateral you can touch?
❌ Wall Street ✅ Private Lending
Lets you understand how your money actually makes money?
❌ Wall Street ✅ Private Lending
Lets you visit and inspect your investment?
❌ Wall Street ✅ Private Lending
Keeps your account from dropping 30% overnight?
❌ Wall Street ✅ Private Lending
Helps you avoid late-night CNBC stress?
❌ Wall Street ✅ Private Lending
Conducive to better quality sleep and restful nights?
❌ Wall Street 😵💫 ✅ Private Lending 😴
The Truth About Risk
Wall Street calls it “diversification.”
I call it “distraction.”
Your stock portfolio’s “value” depends on global headlines, interest rates, and hedge fund algorithms you’ll never control.
Private lending, on the other hand, is simple:
- You’re the bank.
- You earn a fixed return.
- Your loan is secured by real property.
- And if something goes wrong, you hold the note and lien.
That’s not speculation. That’s structured, secured investing.
So, Which Investor Sleeps Better?
If you value rollercoasters and Reddit stock tips, Wall Street might be your playground.
But if you value predictable returns, collateralized security, and calm nights, private mortgage lending wins by a mile.
At just 8–10% annual returns, you’re not chasing the next big thing — you’re building steady, reliable wealth backed by real assets.
Because sometimes, the best investment isn’t the one with the highest yield…
It’s the one that lets you sleep at night.
Want to Learn How to Lend Like the Bank?
Download your free Private Lender Playbook and learn how to build predictable income secured by real estate — without Wall Street headaches.