Short Term Investment Options
Investing for the short term is an important strategy within any investment portfolio. However, before we discuss the short term investment options available, it is important to understand what time period constitutes ‘short term’. For the sake of this article, we will define short term investment options as those requiring between ninety days and two years to return both original principal invested and expected investment returns.
New clients often ask us if there are any short term investment options they can pursue to provide a high rate of return in six months or less. They are usually motivated by the idea of generating a return of $10,000 or more.
We find it is entirely possible to use real estate as a vehicle for producing these types of returns. For example, purchasing a physically distressed property with the intent of fixing it up and reselling it in six months, or less, for a $10,000 profit is a realistic goal.
One of our clients has developed a part time business in which he consistently remodels and resells four houses per year. He targets a profit of no less than $25,000 per property; but often realizes more. He has developed a system to refurbish all four properties at once and then market them in the prime selling season each year. This is a part time business because he only works six to eight months per year and takes the remainder off to golf, fish or travel.
At Wealth2020, Inc. we recommend our clients refrain from investing with the sole purpose of quitting their jobs, or replacing current income. That type of strategy becomes counter productive because it only results in creating another job. Our client, who employs the home remodeling strategy, took approximately five years to develop his system which, now, works consistently, year after year.
Another great strategy is to purchase a home below fair market value, and then rent it or sell it via a lease/option contract with an exit strategy of two years. It is entirely possible to begin a process of purchasing one, below market, home per year, lease/option it for one, two or three years and begin a cycle which nets a profit of $40,000 - $50,000 per year; all on a very part time basis. In the grand scheme of things, this is a great way to create a revenue source totally independent of a full time job. The funds can be reinvested and the compounding effects can be quite unbelievable. Sure it takes one or two years, but this is a short time period compared to a lifetime. Try saving $40,000 or $50,000 in one or two years, when you have to rely upon deriving it from current income. It is extremely difficult to do for most individuals unless they are earning in excess of $100,000 per year in a full time job.
You might say to yourself, “I’m not willing to work that hard” or “I don’t have the skills to get involved in that type of investment”. OK, then it’s necessary to look for other alternatives. The most important point to remember is, deciding to do nothing produces exactly those results, i.e., nothing in return. You certainly don’t want to fall into the group of individuals who believe by some sort of miracle, they are going to get rich overnight. Unless they win the lottery or are the recipients of a large inheritance, it isn’t going to happen.
Let’s say you are willing to take action right now, but you just aren’t comfortable learning all there is to know about real estate investing. Let’s say you perceive it as too risky to take on all by yourself. That’s where we come in. As your mentors, we can introduce you to investments that require little if any real effort on your part. For instance, if you have good credit, we can show you a virtually hands free method of investing in real estate that can produce similar results to those noted above. Although you will always fare much better when you make a study of an investment, we realize it is not always possible for people to clear their schedules and jump right into real estate investing. This is one of the many fantastic benefits you will be treated to as a client; safe investments that produce high yields on a consistent basis. Let us help you eliminate the risk in your portfolio and ensure your success in investing.
Typically, passive income as derived from high yield investments is quite difficult to find; although, we have a number of very safe products to share with you. Depending upon the risk tolerance of an investor, we are able to show our clients contractually guaranteed rates of return varying from 10% to as high as 20%; or more. These are short term investment options where the time period for these investments can vary from as little as ninety days up to as long as two years. When you compare our investment products to stocks or mutual funds, you will appreciate why ours are so much safer. Unlike stocks and mutual funds, we always seek to preserve your principal.
One of the best strategies for generating high rates of return via a passive income is to develop a home based business. Our absolute favorite method is to use the internet to start a business. It usually takes about two years to develop a web site capable of earning a significant income stream. Once individuals become clients, we introduce them to a system that requires a small investment (typically $500 - $3,000) to develop a web site capable of generating passive income of thousands of dollars per month. Two years is certainly a short time horizon for producing those results on a consistent basis.
For example, let’s say you invest $2,500 to create an income producing web site that consistently generates $2,000 per month profit within 2 years. What kind of return on investment does this represent? It is in excess of 950% per year; reinvest only 50% of the earnings from this venture and your savings portfolio grows very rapidly. With this system, not only will you add to your savings portfolio while you are employed, but you will also create consistent residual income as you go into retirement.
These are ideas which are intended to get you thinking. In our book “Create Wealth on Auto-Pilot,” we outline a strategy which becomes the foundation of your long term financial plan. Order the book! After you read it, call us and we will work with you on a step-by-step basis to enhance your short term investment options strategy.
Additional Investment Strategies
Define Your Goals for Investing How to Invest Small Amounts of Money Advanced Wealth Planning Techniques
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