Spent it on stock markets? Put it in the bank for say 1-2 percent annual interest? Buying valuable metals? Crypto currency?Or just spend it all and you don’t care.
And today I am going to share a story with you on how a 10,000 usd commitment, and a shift on investment mindset and adaptability change a novice property investor.
Most people tend to believe that if they only have money like 10,000 usd, the investment options are namely those that I have mentioned at the being of the episode. You yet have enough to buy property, hence you reckon the options you have are mainly non-real estate play.
The reality is you do have Choices when you are ready to opportunities and that’s how my mum did it. A couple of years ago she set aside 10000 on private lending deal on an investment club. She was not like those loan sharks who goes into high risk play. She joined the investment club which get her access to well assessed property deals that need short term financing. And every year she tolled in 10,000 more. She rolled 5 times, each for a duration of 12 – 18 months with an annual guaranteed income of 8 percent of what she put down (similar to private mortgage trust)
And in case you are new to mortgage trust, the risk of it is very low.
Total returns in 5 years: 13,359/50000 = 27%
Whereas if you are putting money in the bank, most likely you are only going to get 8-10 percent.
In doing that, it takes a shift in mindset and be open up to something new and understand the level of risk and how to pick the right deals that qualify her to do so (because in most situation, those deals only open to accredited investors)
You might reckon 63,359 usd is not a lot, but it set her in a position to double her money in less than a year in the most controversial year 2020 when she joined another investment club on a fix and flip project in Portugal.
You might be wondering how does it all happen?
A supposingly highly risk-adverse lady who used to just do fixed deposit to this, what are the key factors?
Now is your turn, are you ready to open to new idea or are you going to just keep the old way?
If you are ready, I have a training coming up on how to get outperforming fixed returns even in this new normal period Register here
Or if you are ready to go straight into fix and flip project, you can join out investment club. Members on this Waitlist will be invited on a briefing section when something nice comes up.
