Post: #1

What is the best method to store between 20 and 50k for a couple years? I've been using CD's that get just over 1% interest. It's shit, I know. Is there anywhere that can make better interest with low risk?

Right now it's looking like I should do some research to find a solid mutual fund.

Thanks

Post: #2

Litecoin. Check the thread in Lifestyle. It's higher risk obviously but you need to take more risks if you want better returns.
you can get a few hundred % returns if you invest now.

Post: #3

Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Post: #4

(04-13-2013 08:16 PM)renotime Wrote:  Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Break this down a little more.

Post: #5

(04-13-2013 08:47 PM)thegmanifesto Wrote:  

(04-13-2013 08:16 PM)renotime Wrote:  Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Break this down a little more.

Yes, please.

Post: #6

Lending Club can give you decent returns(8%)

It connects lenders(people trying to get returns) and people that want loans.

You can build a portfolio of different loans(higher risk = higher roi lower risk = lower roi)

Higher risk meaning lower credit score

Post: #7

I would second NY Digital's suggestion of Leading Club. I use Prosper, which is nearly identical to Lending Club, and earn about 7% annually.

Lending Club has/had a promotion, get $300 back when you deposit $10,000.

Post: #8

(04-13-2013 09:08 PM)NY Digital Wrote:  Lending Club can give you decent returns(8%)

It connects lenders(people trying to get returns) and people that want loans.

You can build a portfolio of different loans(higher risk = higher roi lower risk = lower roi)

Higher risk meaning lower credit score

I rocked with lending club last year. I got a 13% returb. My problem was all the notes I bought were second hand. Buyers bought the 3 year note and then sold them so I actually lost money. Great learning experience though. Would def recommend. Westcoast has a great thread on investment advice. Look him up.

Post: #9

(04-13-2013 08:47 PM)thegmanifesto Wrote:  

(04-13-2013 08:16 PM)renotime Wrote:  Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Break this down a little more.

The note is for a mobile home in Texas.

Essentially, I am acting as the bank. The guy that lives in the trailer makes a monthly payment to me for 361.80 a month until the note is paid off. If he fails to make payments, I repossess the home and resell the home on a note again. If you have all the proper paperwork it's pretty simple to take the home back, although I have never had to do this.

So there are a couple of ways to do this:
You can buy a mobile home in a park for a few grand and sell it on a note on your own. People that live in mobile homes typically are unable to get loans from a bank, hence you act as a bank and charge a higher interest rate, usually 12-15 percent. This method takes a fair amount of due diligence, but is certainly doable. I have tried to do these types of deals, but haven't been able to find many in my area. I would recommend reading "Deals on Wheels" by Lonnie Scruggs for more in depth information. So, in theory, you could buy a mobile home for 6k, turn around and sell it for 12k at 12-15 percent interest and structure the note to your choosing.

This a thread on a guy that did them that way: http://forumserver.twoplustwo.com/30/bus...al-456742/

Another way to do it is to buy the note off the guy that has already done the work for you, which I did. Yeah, you will be leaving more money on the table, but you can get the deal done way quicker. You can still make 15-20 percent yield over the course of a few years.

The third option is to do all the foot work yourself, i.e. buying and selling the mobile home, structuring the note, and then selling said note off for a quick profit.

My due diligence was fairly straight forward, which entailed signing and notarizing a few documents and sending a cashier's check. You could hire a lawyer to arrange the documents, but I did not.

Is this 100 percent fail safe? Well, no. The mobile home could burn to the fucking ground and I was too lazy to get fire insurance for the place. He could decide to stop making payments and tear the place up before I repossess the home. Overall, though, I think it's a solid investment.

I was able to find this deal through a mutual friend. Since then, the guy has offered to sell me like 14 notes. If I had the money I probably would have done them.

You could probably find similar deals through Craigslist and local real estate investment clubs.

Feel free to pm if anyone has any other questions.

Post: #10

If you dont want too much risk, I would look at a short duration bond fund. Yields are between 3 and 4 percent, not a lot but better than the bank. I personally use the Lord Abbet short duration bond fund, as my savings account.

Post: #11

(04-15-2013 10:17 AM)Lou pai Wrote:  If you dont want too much risk, I would look at a short duration bond fund. Yields are between 3 and 4 percent, not a lot but better than the bank. I personally use the Lord Abbet short duration bond fund, as my savings account.

"Better than the bank"

That really doesn't mean much.

Between 3 and 4 percent, you're barely keeping up with inflation, if not falling behind it.

Post: #12

(04-14-2013 10:16 PM)renotime Wrote:  

(04-13-2013 08:47 PM)thegmanifesto Wrote:  

(04-13-2013 08:16 PM)renotime Wrote:  Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Break this down a little more.

The note is for a mobile home in Texas.

Essentially, I am acting as the bank. The guy that lives in the trailer makes a monthly payment to me for 361.80 a month until the note is paid off. If he fails to make payments, I repossess the home and resell the home on a note again. If you have all the proper paperwork it's pretty simple to take the home back, although I have never had to do this.

So there are a couple of ways to do this:
You can buy a mobile home in a park for a few grand and sell it on a note on your own. People that live in mobile homes typically are unable to get loans from a bank, hence you act as a bank and charge a higher interest rate, usually 12-15 percent. This method takes a fair amount of due diligence, but is certainly doable. I have tried to do these types of deals, but haven't been able to find many in my area. I would recommend reading "Deals on Wheels" by Lonnie Scruggs for more in depth information. So, in theory, you could buy a mobile home for 6k, turn around and sell it for 12k at 12-15 percent interest and structure the note to your choosing.

This a thread on a guy that did them that way: http://forumserver.twoplustwo.com/30/bus...al-456742/

Another way to do it is to buy the note off the guy that has already done the work for you, which I did. Yeah, you will be leaving more money on the table, but you can get the deal done way quicker. You can still make 15-20 percent yield over the course of a few years.

The third option is to do all the foot work yourself, i.e. buying and selling the mobile home, structuring the note, and then selling said note off for a quick profit.

My due diligence was fairly straight forward, which entailed signing and notarizing a few documents and sending a cashier's check. You could hire a lawyer to arrange the documents, but I did not.

Is this 100 percent fail safe? Well, no. The mobile home could burn to the fucking ground and I was too lazy to get fire insurance for the place. He could decide to stop making payments and tear the place up before I repossess the home. Overall, though, I think it's a solid investment.

I was able to find this deal through a mutual friend. Since then, the guy has offered to sell me like 14 notes. If I had the money I probably would have done them.

You could probably find similar deals through Craigslist and local real estate investment clubs.

Feel free to pm if anyone has any other questions.

Thanks for the great info renotime. Do you typically have to go by the mobile home on the first of the month to collect rent, or are your buyers somewhat on top of their shit, where they can pay their bills on time? Do you run into problems with the tenant not paying the mobile park fee/utilities/etc?

Post: #13

(04-15-2013 01:18 PM)obrero Wrote:  

(04-14-2013 10:16 PM)renotime Wrote:  

(04-13-2013 08:47 PM)thegmanifesto Wrote:  

(04-13-2013 08:16 PM)renotime Wrote:  Performing Notes and Non Performing Notes have solid 15-20 percent yields.

If you live in a big city you could join a real estate investment club and find something.

I bought a note last year for 10,400. I will receive my final payment in march of 2015. I'll make a little over 3k on the deal.

You could do some damage with 50k.

Break this down a little more.

The note is for a mobile home in Texas.

Essentially, I am acting as the bank. The guy that lives in the trailer makes a monthly payment to me for 361.80 a month until the note is paid off. If he fails to make payments, I repossess the home and resell the home on a note again. If you have all the proper paperwork it's pretty simple to take the home back, although I have never had to do this.

So there are a couple of ways to do this:
You can buy a mobile home in a park for a few grand and sell it on a note on your own. People that live in mobile homes typically are unable to get loans from a bank, hence you act as a bank and charge a higher interest rate, usually 12-15 percent. This method takes a fair amount of due diligence, but is certainly doable. I have tried to do these types of deals, but haven't been able to find many in my area. I would recommend reading "Deals on Wheels" by Lonnie Scruggs for more in depth information. So, in theory, you could buy a mobile home for 6k, turn around and sell it for 12k at 12-15 percent interest and structure the note to your choosing.

This a thread on a guy that did them that way: http://forumserver.twoplustwo.com/30/bus...al-456742/

Another way to do it is to buy the note off the guy that has already done the work for you, which I did. Yeah, you will be leaving more money on the table, but you can get the deal done way quicker. You can still make 15-20 percent yield over the course of a few years.

The third option is to do all the foot work yourself, i.e. buying and selling the mobile home, structuring the note, and then selling said note off for a quick profit.

My due diligence was fairly straight forward, which entailed signing and notarizing a few documents and sending a cashier's check. You could hire a lawyer to arrange the documents, but I did not.

Is this 100 percent fail safe? Well, no. The mobile home could burn to the fucking ground and I was too lazy to get fire insurance for the place. He could decide to stop making payments and tear the place up before I repossess the home. Overall, though, I think it's a solid investment.

I was able to find this deal through a mutual friend. Since then, the guy has offered to sell me like 14 notes. If I had the money I probably would have done them.

You could probably find similar deals through Craigslist and local real estate investment clubs.

Feel free to pm if anyone has any other questions.

Thanks for the great info renotime. Do you typically have to go by the mobile home on the first of the month to collect rent, or are your buyers somewhat on top of their shit, where they can pay their bills on time? Do you run into problems with the tenant not paying the mobile park fee/utilities/etc?

The guy sends me a cashier's check by the 5th of every month. If I don't get it by the 5th that is grounds for repossession. That would be a hell of a drive to collect a check, considering I live on the East Coast and the dude is in Texas.

I think the guy had been paying for over a year on time to the previous note holder, making it less of a risk. I have had no problems with him at all, other than him never buying fire insurance when he said he would.

But if you do encounter notes that have just been structured (i.e. buyer of home has just started paying) you might be able to ask for a higher yield.

I think this is a solid form of passive investment, especially for a forum guy. You can go off to Bogota for 6 months and have a bunch of checks in the mailbox waiting on you.

If there's more interest in this maybe I'll make a thread, but that's pretty much all there is too it. Plus, I have only done one deal.

Post: #14

I'm not sure what the laws are in the states. But if it's anything like Canada I hope you guys are securing these loans otherwise you may fall behind other creditors in the event of bankruptcy. Which if you are doing high risk loans is more than just a remote possibility.