It’s important to establish a safe and dependable investment strategy if you’re trying to build a nest egg that won’t crack. But losing their life savings through investments that looked safe is what happened to millions of Americans last year. When companies failed, there are cases where people not only lost their jobs, they lost their pensions as well.

What would be a safe place in which you can put your money? Analysts say yes, but it’s important to learn a few facts first.

For instance, real estate has long been known as a secure, tangible investment because it generally appreciates over time. There are a lot of would-be investors that aren’t experts on real estate and they don’t have the money to fund the purchase of an investment property or fix up a rundown home. But another strategy is available. It’s called cash flow investing and it allows people to benefit from secure and profitable real estate investments without buying or selling properties.

Put simply, a real estate cash flow note is a private mortgage created between two individuals instead of between a buyer and a bank. One in 13 American homes is sold this way and this is something many people are not aware of. Similar to banks that buy previously created mortgages, private individuals can build returns of 20% or more by buying cash flow notes. Any ideas how this works?

Let’s say I sold a house for $100,000 and my buyer had $50,000 to use as a down payment. What I can do is draw up a contract taking $50,000 down and finance the remaining $50,000 over 30 years. What I now have is a cash flow note and each month, it would generate monthly payments of $299.78 secured by real estate.

As a note holder, I have two options. Either I sell the note to another investor for instant cash or I can take advantage of the monthly income and interest. This is where you, as an investor, come in to make money. As an investor, let’s say you can invest $35,000. I don’t want to wait 30 years for my money so for $35,000, I’ll sell you my $50,000 cash flow note. Buying notes at great prices is what many investors are able to do because the original note holder wants to cash out. You’re now in a position to make a 30% return on your investment even before interest and you’re receiving a steady income of almost $300.

Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.