A dense but informative introduction to an unfamiliar investment vehicle.

PRIVATE MONEY LENDING

LEARN HOW TO CONSISTENTLY GENERATE A PASSIVE INCOME STREAM

A comprehensive overview of the benefits and drawbacks to an investment strategy.

In this business book, Gomez guides readers through the fundamentals of private mortgage lending and recommends it as less volatile and risky than equity investing for properly educated investors who are interested in actively managing their finances. The book opens with a general overview of liquidity and ways to save and invest money, from checking accounts to equities to annuities. It then moves to an explanation of private mortgage lending—higher-rate loans made by nonbanks to property owners in circumstances for which traditional loans are unavailable or not the best fit—and why investors who are looking for a less volatile option than the stock market may benefit from the relatively high returns and comparatively low risk of private lending. The book goes into detail as it explains how private lending works, including which laws and regulations govern the sector; the mechanics of issuing, servicing, and profiting from a loan; potential areas of concern and reasons for caution; and the corporate ownership structures available to investors, followed by a framework for assessing the potential value of an investment. Appendices provide further information on state-level foreclosure law, sample mortgage-related documents, and an exploration of the relationship between interest rates and bond prices.

The guide is an extremely detailed introduction to a complex topic, and throughout the text, Gomez reminds the reader that private lending is an effective strategy only for those who thoroughly educate themselves on the topic, find a solid mentor (“associating oneself with individuals who possess experience in the field the investor wants to participate in is in itself a risk-mitigating strategy”), and have a competent attorney available for all contracts and transactions, making it clear that the book and its recommendations are more applicable to a self-selected group than a general readership. At the same time, the book does not oversell the possibilities of private mortgage lending and provides tools for assessing the potential returns of the investment, adding to its credibility. While the information is often understandably complicated, Gomez does a good job of using clear, simple language in most places (“A good and safe rule to follow is to lend only on properties the lender would not mind owning, and only in areas in which the lender would not mind living”), making it highly accessible to readers without an advanced understanding of finance and investment. At the same time, Gomez does have a tendency to frequently reference and return to topics like the “unintended consequences” of Dodd-Frank and other regulations and the “artificially” low interest rates currently maintained by the Federal Reserve, which can make the text feel somewhat repetitive. On the whole, though, the amount of information conveyed more than justifies the book’s length, making it a worthwhile tool for readers interested in expanding their investment portfolios in a new direction.

A dense but informative introduction to an unfamiliar investment vehicle.

Pub Date: Feb. 19, 2020

ISBN: 978-1-61244-815-2

Page Count: 440

Publisher: Halo Publishing International

Review Posted Online: Feb. 24, 2021

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BEATING THE STREET

More uncommonly sensible investment guidance from a master of the game. Drawing on his experience at Fidelity's Magellan Fund, a high- profile vehicle he quit at age 46 in 1990 after a spectacularly successful 13-year tenure as managing director, Lynch (One Up on Wall Street, 1988) makes a strong case for common stocks over bonds, CDs, or other forms of debt. In breezy, anecdotal fashion, the author also encourages individuals to go it alone in the market rather than to bank on money managers whose performance seldom justifies their generous compensation. With the caveat that there's as much art as science to picking issues with upside potential, Lynch commends legwork and observation. ``Spending more time at the mall,'' he argues, invariably is a better way to unearth appreciation candidates than relying on technical, timing, or other costly divining services prized by professionals. The author provides detailed briefings on how he researches industries, special situations, and mutual funds. Particularly instructive are his candid discussions of where he went wrong as well as right in his search for undervalued securities. Throughout the genial text, Lynch offers wry, on-target advisories under the rubric of ``Peter's Principles.'' Commenting on the profits that have accrued to those acquiring shares in enterprises privatized by the British government, he notes: ``Whatever the Queen is selling, buy it.'' In praise of corporate parsimony, the author suggests that, ``all else being equal, invest in the company with the fewest photos in the annual report.'' Another bull's-eye for a consummate pro, with appeal for market veterans and rookies alike. (Charts and tabular material— not seen.)

Pub Date: March 1, 1993

ISBN: 0-671-75915-9

Page Count: 320

Publisher: Simon & Schuster

Review Posted Online: May 20, 2010

Kirkus Reviews Issue: Jan. 1, 1993

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A solid overview of a nation much in world news and of economic trends that will have significant effects in the global...

SAUDI, INC.

THE ARABIAN KINGDOM'S PURSUIT OF PROFIT AND POWER

Tracing the conjoined realms of dynastic politics and international commerce in the history of Saudi Arabia.

It was an Arab from the desert, Abdul Aziz, who led the struggle to unify the tribes of the Arabian Peninsula into the kingdom of al Saud, but what gave him the wherewithal to link the settlements of his new country were petrodollars, brought to the kingdom by an American concern called Aramco. Indeed, writes energy consultant and historian Wald, it was the vision of what the company built for its own workers—schools and hospitals and apartment blocks—that set Abdul Aziz on his modernizing path, which was undertaken with some reluctance since the king “felt more than a little uneasy at the pace at which his people’s traditional lifestyle was changing.” Later, the Saudi government would nationalize Aramco; in recent years, there have been proposals for a public offering, though whether for Saudi investors exclusively or a broader clientele remains to be seen. Wald shows how the al Saud rulers entered into another uneasy alliance—with religious fundamentalists—in order to legitimate and solidify their rule and spread it throughout Arabia. She rejects the thought that, despite the overwhelming Saudi presence among the 9/11 hijackers, the Saudi royals have much involvement with terrorism, which is bent on upsetting their power as much as waging jihad against the West. The author closes by hinting at reforms that she notes at the outset are beyond the scope of her discussion, reforms not just in the structure of Aramco and the company’s approach to energy, but also in the larger Saudi society, evidenced by such things as greater investment in education and a diversified economy in which women fully participate.

A solid overview of a nation much in world news and of economic trends that will have significant effects in the global marketplace in years to come.

Pub Date: April 3, 2018

ISBN: 978-1-68177-660-6

Page Count: 304

Publisher: Pegasus

Review Posted Online: Feb. 6, 2018

Kirkus Reviews Issue: Feb. 15, 2018

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