I want to know if the contractor has experience, be assured they are not someone you picked up at the day labor corner, that they are bonded and insured to the scope of work.Don't ask a lender to recommend a contractor, ask them who they have worked with in the past, that's two different issues.Great thread!

The drop in rates reflect a shift back toward long-term bonds (as the stock market volatility increased).

Its like having a bond that I bought for $250,000 with a coupon that rises with inflation paying enough to rent my 2,500 square foot home.

I have about 1/3 of my money in property and the rest in stocks and bonds, though I'm looking to make it more half and half.  :-)Good luck with whatever you decide! 

Real estate has a much larger risk of losing more than you've invested than stocks or bonds.

Keep in mind that there's a difference between "hard money" and "private money" (though everyone may have different terms).Hard money comes from professional lenders that you probably don't have any personal relationship with -- they lend professionally, and they are going to charge as much as they can get away with charging (as business owners, they should).Private money tends to come from family, friends and/or other acquaintances who don't lend professionally, and who are simply looking for a better investment vehicle than whatever they currently have (generally stocks and bonds).

If no other bid is made and your entry bid wins, most states have a period of redemption and the borrower has to follow certain proceedures, like posting a bond, saying they want to payoff the note.

then the question is..I have some bonds which generate consistent interest income.

Pay particular attention to the part on BONDS, as a mortgage is essential a bond, ie; a fixed rate investment.Typically the PRICE of a bond varies inversely with interest rates.

Keep in mind, retirement plans are not limited to traditional stocks, bonds & funds, but may be invested into things like real estate and private lending transactions.If your wife's school district is providing a match, that is free money and you want to take advantage of that.