High Yield Investments With Security - Notes - Options - Roth IRAs - 401ks

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The Rule of 72

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Rule of 72

This is a great trick I have learned along with investing and you can apply it to your own investments now and in the future.

The Rule of 72 is a great financial tool and shortcut to estimate the effect of any growth rate or how compound interest can help you or hurt you. 

Here’s the formula:

  • Years to double your cash = 72 / Interest Rate You Earn Now
  • Interest Rate You Need To Earn = 72 / Years to double your cash

This formula is useful for financial estimates and understanding the nature of compound interest.


  • At 3% interest, your money takes 72/3 or 24 years to double.
  • To double your money in 6 years, get an interest rate of 72/6 or 12%.

You can also use the rule of 72 for expenses like inflation or college tuition:

  • If inflation rates are 3%, your money will lose half its value in 24 years.  (SCARY!!)  (So you need to earn way more than 3% just to keep up!!)
  • If college tuition increases at 5.5% per year (which is faster than inflation), tuition costs will double in 72/5.5 or about 13.1 years!! Which if you have kids now that is any easy calculation for you to understand that you have to make a lot of money if you want your kids to go to college.  I have a 4 year old and a 1 year old as I write this.

The rule of 72 shows why a “small” 1% difference in inflation or expenses has a huge effect on you (positively or negatively)

The questions to ask yourself: are your investments going in the right direction?  Are your investments consistently beating inflation?  If they are not then you need to act now to make enough in order to retire when you want.

For example - if your investments on average have been making 5 to 8% (which a financial advisor at some large company thinks is a good rate) you need to ask yourself, are you getting to your retirement goals fast enough (including inflation)?  My guess is you are not.  You really need to be making well over 8% (on average) to be reaching your retirement goals.  I am no financial advisor but do you think your investments, on average, have been giving you returns of 8% or more per year this last decade?  I can probably guess NOT.

Even if you don’t invest with us you need to take action now.  Use the Rule of 72 to your advantage.  Time is on your side if you do something now.  Don’t wait and be working at Wal-Mart or the Supermarket because your investments didn’t give you the return you needed.

We consistently have opportunities for people at not just 8% but at 12% fixed (not variable) interest secured by a deed of trust on a house (so there is security).  And many people are lending directly from their IRA, 401k or pension plan. 

We have several happy lifetime customers who will be with us forever.  If you have any questions on how to lend from your IRA or 401(k) you can visit the Self Directed IRA custodian that we use personally at  Another highly recommended Self Directed IRA company is or you can just contact us directly and we will point you in the right direction.

We are always here to help.

Good luck in 2010!



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By rolling or transferring your IRA or abandoned 401(k) (some of my friends don’t even look at their 401(k)’s anymore because it is too painful) to a self-directed IRA or 401(k) account you have not only the ability to continue to invest in the same investments you are in now (which, if it is mutual funds, you are dying a slow death) but also alternative investments such as Notes, Real Estate Options and Real Estate itself. Even if you choose not to invest in our opportunities here at TopDollar -> this is something you need to do.

I am a big believer in investing in 'Private Money Loans' secured by a Deed of Trust. I loan money from my Self-Directed ROTH IRA now and have been for a couple of years.  You can easily receive up to 15% returns annually and your principal is secured by real estate at a very low loan-to-value (LTV).  Meaning, if you loan $100,000 the property must appraise much higher than your loan with a true appraisal, not a fabricated one.  If you can stay at 75% LTV, when you loan $100,000 the property must be worth $133,000 or more.  If the borrower doesn't pay you simply foreclose and fire sale the property and probably make a better profit by doing so.  You get your investment back!  Who would of thought of that in the Stock Market.

Of course there are ways to eliminate the foreclosure process but I will save that for another article or video down the road.

Folks, receiving 15% returns, heck, receiving just a 12% consistent, safe and secure return will make you rich and I can prove it.  You will simply blow your neighbors savings away and safely.  I do this everyday and I will loan money until the day I die.  It just makes sense.  I have no money in the stock market or even Gold.  Because both of those will come crashing down someday.  However my loans keep paying no matter what is going on in the investing world.

Of course this is just one example of an alternative investment, there are many more but I am a BIG advocate of being the bank with security.

You don’t get security with normal investments like a Mutual Fund.  Your fund could be worth much less someday.  You also have no control over those gains. 

Ask yourself the question “why is there a bank on every corner?”  Because they make a killing on single family real estate even in today’s market, don’t kid yourself.  They are still lending at 97% LTV today!  I am telling you to only lend at 85% LTV max (if you love the house cause you could get it). 

So hopefully you can see why I believe Private Money Lending is the real way to get rich no matter how much money you start with.  If you are the bank, you can just pick your interest rate, lend and secure it against a good property and ride the wave and retire in style!


Denver First Position Note For Sale

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1st Position Income Property Located In Denver

Your Price: $35,000

Original Loan Balance: $45,000

Principal Loan Balance: $45,000

Payments: $269.80

Interest Rate: 6%

Original Term: 10 Year Balloon Amoritizing at 360 Months

Term Left On Loan: 120 Months

Notes: This is a safe note because the Value of the building and land is well over $100,000 - total cash flow of $795 a month.

For more information Contact Us


Denver 2nd Note For Sale W/ Profit Share

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Have Takers - Taken Off Market

2nd Position Profit Share Opportunity With Me On A House I'm Buying (SEE BELOW)

Denver Note For Sale Great House

Cost To You: $10,000

2nd Position Loan Balance: ~$25,000

Total Amount of Note With Late Fees and Payments: ~$32,000

First Loan Balance: $211,000

Total Amount of First Loan With Fees Etc.: $239,000

Total Balance Of Loans (With Second Purchased At 5K): $244,000 (70% of LTV)

I'm Buying The House Subject To Those Loans - No Fix Up Cost

House Is Worth: $350,000+

How Do You Get Paid?  You Get Half of the 2nd Loan Balance plus your investment back when I sell the property in 6 Months

Contact Me For All The Information: Contact Kevin



Houses Are Better Investments - Not Apartment Buildings, Commercial or Land

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Below I will explain why houses are better investments than Commercial Space, Apartment Buildings or even Land.  I will also tell you why investing in anything other than houses is flawed.

Commercial property seems like a good investment especially Commercial Office Space.  A lot of REIT's buy Commercial Office Space.  Donald Trump loves commercial space but he knows what he is doing and his space is in New York City.  He understands that his branding plays a lot into his product that he sells.  People in New York would rather rent Donald's stuff even though it is a little more expensive.  Also look at Donald's investments.  Several of his buildings are a combination of Office and Apartment Space.  He understands that if commercial tanks that he can still rent or sell the apartments.  However lets come back to Earth here.  I live in Colorado.  I understand this market.  Some commercial property goes vacant for years when the market changes.  There are huge swings in value when the market heads south.  How do you appraise a vacant commercial building?  I can tell you that it is not worth much.  Does anyone want to buy something that negative cash flows?  That doesn't make sense to me.  Why don't those commercial guys swing with the market?  Why don't they cut their rents in half just to create something?  Why don't they move quickly?  Because they can't or won't maybe.  I think it is more pride than anything and they are willing to negative cash flow for year because their product is superior.

Apartments make a little more sense to me.  Everyone needs to live somewhere.  But when there are less people in a metro area due to a bad job market vacancy rates increase.  Again the Apartment owners have no control over that.  Maybe they try to advertise incentives or free rent but their vacancies always increase.  Apartment dwellers are very nomadic in nature anyways.  Some love to only stay for 6 months and then move somewhere else.  If you mess up once in the management of your apartment, your tenants will be looking where they want to move next.  Also a lot of apartment renters will eventually upgrade to a house!  Go figure.  If you are like me, you don't like living communal style with shared walls with people who could act like bad roommates.  I did that in college.  Now that I have a family, I want my own property and a little privacy.

Land.  Land is very speculative in nature.  Land is very hard to appraise.  Land without buildings has very little use.  I think Land is the worst investment anyone could make unless you want to camp on it for a very longtime.  Don't get me wrong some people have made money on land.  But that usually takes a lifetime.  If I bought Colorado back in the day for $100 I would of made a profit.  But that is not how it works now.  God for bid you needed your investment money back and the market is like what it is now.  I know some people especially builders that have loans on land right now and they won't be able to sell it for years.  But they have to make payments every month.  You also can't easily rent land.  Commercial and Apartments are easier to rent than land.  Maybe you can rent it to some cowboy so he can put his cows somewhere but good luck on that.  Some investors that I know that have ended up with land in their portfolios can only usually sell in hot markets.  In any other markets they can only sell with some type of owner financing.  When you sell on owner financing you should always expect to get the property back.

Now - the real investment - Single Family Homes.  Basically houses are more liquid.  You can still go down to the bank in this bad market and get a loan at almost 100% against them.  I won't say it is easy to do it but banks are still giving those loans.  Just try to get a loan against anything else today, you will have to bring a large down payment.

Also there is no reason for a house to be vacant.  As an investment if a house is vacant you are either a bad manager or you are a home owner in distress or a bank.  Like I said before homes are the most liquid of any real estate.  If you need your money back quickly it is easier to get it back if it is in a house.  Homes are easy to sell in any market (if you know what you are doing) and easy to rent in any market for the right price.  If you can't sell for the price you want then they are easy to rent even if vacancy rates are high.  You can still rent a home, provided it is not trashed, weird or obsolete.  People want to live in homes.  I want to live in a home and I would guess that you do to.

Commercial property like Apartment Buildings or Commercial Space and Land swing with whatever is going on in the market.  If it is a bad market then vacancy rates increase.  Think about that.  Even if you are a great manager you could still loose tenants.  You absolutely have no control over the market.  You can still loose cash flow.

In conclusion if you are looking at investing in Real Estate please study what you are getting into.  REIT's have good sales people that make a lot of money and know how to get you excited.  I will blog about REIT's at a later date.  Also large buildings and large land deals sound like they will just spew money at you.  But I know several people who have lost their whole investment on those supposed great deals.

Please feel free to comment below why I am write or wrong.  I would love to hear your feedback.

And as always please feel free to contact me or ask me a question on investing.  I am here to help.



Denver Option 4 Sale

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This Option SOLD Quick Sorry

I have an $13,600 Long Term Option For Sale On a Single Family Home Located Here In Denver


In exchange for a $40,000 loan at 6% (Secured against another property that you agree on) I will give you a 20 Year 15% Option secured against another home.  That Option today is worth ~$13,600.  You will not have to exercise that option for 20 years if you chose to.  That Option will be worth a lot more then and in turn your note will be paid in full at that date.

Call me with any questions.


Littleton Note For Sale

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2nd Position - Single Family Home in Littleton

Your Price: $9838.20

Original Loan Balance: $15,000

Total Principal Loan Balance: $16,275.94

Late Payments: $1273.93

Late Fees: $84

Payments: $181.99

Interest Rate: 8%

Original Term: 120 Months

Term Left On Loan: 112 Months

Notes: 7 months behind -> Only made 1 payment, good terms on first note and plenty of equity in the house, 83% LTV, Family situation doesn't want to foreclose on them.  You can foreclose and assume the first (without Due On Sale Clause Problems with the first lender).  If you don't know how I will tell you how.  Call for more info.


Denver Note For Sale

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2nd Position - Single Family Home Located in Denver

Price: $20,383 (18% yield)

Original Loan Balance: $30,000

Principal Loan Balance: $29,515.18

Payments: $308.58

Interest Rate: 12%

Original Term: 360 Months

Term Left On Loan: 315 Months

Notes: Performing


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Private Lending With Us

Dear Investor,

TopDollar Capital LLC buys several houses each month and has been doing so since 1999.

When we pay cash for a house and get a steep discount, we usually include private lenders instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield when we use their money to fund our new deals.  This is our business model and it works well.

Maximum loan to value is 75%. That means we will borrow up to $75,000 on a $100,000 property. The money we borrow is secured by a 1st note and deed of trust (mortgage). Our investor gets 10.00% interest. Monthly payments include principal and interest, or interest only, depending on your investment needs.

Interest only payments keep 100% of your principal working for you during the whole investment term. Most loans have a balloon payment due in 1 to 7 years. The term is decided by you.  You can also cash out before hand without any penalty.  Banks do not even offer this on their low yielding CD’s.

Sometimes we borrow offering a 2nd deed of trust. For example, if there is a first mortgage for $50,000, then we can offer our investor a second mortgage of (up to) $25,000. In the case of a second position, we pay 13.00%.

All private lenders get:

  • A Promissory Note
  • A Deed of Trust recorded against the property
  • Added on to the hazard insurance as the mortgagee
  • A copy of any appraisals or market analysis reports
  • Lender’s title insurance

We pay all costs involved to close the transaction. There is no cost to you as the investor.

Before you invest, we would first discuss how much of your capital you are looking to commit and for how long. We would then look for a deal that will meet your criteria. Once I locate the right property, I will call you, give you all the details and then you decide whether to pass or play. There's never any obligation until after you approve the deal.

We never co-mingle or pool funds together. One investor... one note and one deed of trust.  This makes your investment even more secure.

When you decide on a deal, a closing agent at a local title company will be in contact with you.  That agent will make sure everything is done correctly just as if you were a large institutional bank. We never accept your funds directly.

For some investors, we can offer to sell existing notes secured by real estate at a discount to yield 13-18%. These types of deals are less common but opportunities to buy discounted notes occur now and then. Discounted notes are great investments for retirement funds that are either tax-deferred or tax-exempt.  Discounted notes would require further explanation regarding risks but we would walk you through the whole process.  Our company invests in discounted notes on a regular basis.

All the houses used as collateral will be located near Denver, Colorado in Jefferson, Denver, Douglas, Boulder and Arapahoe counties. We occasionally have deals near Breckenridge Colorado if that is your preference.

Most of my private lenders currently include many of my family members, seasoned business contacts, and previous sellers I bought property from. Only recently have I opened this opportunity to others visiting our website.

If you have funds in a retirement account (IRA, ROTH or 401k), you can use them to invest. The IRS requires the use of an approved custodian to qualify for tax-deferred or tax-free gains. I will be glad to point you in the right direction and how to find out more information on approved custodians.

To learn more, or to be added to our private investor list, please call Kevin at 720-334-PAID (720-334-7243) or submit the form located on this website. Your questions are always welcome.


Kevin Eaton
President, TopDollar Capital LLC
Denver, CO

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Who is TopDollar?

We use private investors and lenders to purchase our houses cash. This allows us in turn to get great deals on single family cash flowing homes.  If you're interested in getting both a high yield and secure investment on well-collateralized real estate notes paying 10 to 13% -> you have come to the right place.  We specialize in using IRA's, ROTH IRA's, Pension Funds and 401k's but if you have a CD that is not getting you the yields you want we can help.

You Can Download Our Investing Packet Here -> 2010 TopDollar Capital Private Lending Program (Guide For Investors)


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