When asked about home business opportunities I always state that the best way to make money, is to rent money and always make sure that the money you are renting is someone else’s! This statement seems ridiculously simple because it is just that simple.
If you look at it seriously, the individuals that make the most money are NOT the real estate investors (although traditionally they make more money than most), stock market aficionados, or people that hold certificates of deposits with their banks, but it is the bankers or money lenders themselves that fund these real estate investors or hold the money for the cd holders. I mean think abut it, what are they doing? Hey are turning around and lending your money out and making MORE money off of YOUR money!
Let’s look at the big picture for a moment and see where you can place your money: Once we see how to rent the money, then I will show you how to rent money that’s not even yours!
Regular Bank Account 2% interest annuallyCD Account 4% interest annuallyStock Market 10% interest annually (If you have a fantastic year)Real Estate 15-30% interest annually typicalSelling Money 100-600% interest annually
I don’t know about you, but 100-600% annually is the type of return that I would like to see on my money. I want to stop here for a moment and tell you that I am not going to propose that you open a paycheck advance operation or that you open a chain of pawn shops (although there is some extreme money to be made in these venues). There is a certain way that you want to go about renting your funds and this will make all the difference in the world when it comes to success and failure.
When first starting out in the money rental business, you will want to take it slow and work only in the areas where your money is most secure. I have found that real estate is the best avenue for this. What should typically be done is to attend as many local investor meetings as possible and simply let the word get around that you will lend money for small rehab projects or for down payment financing. Add to this a few well placed ads in your local weekend thrifty nickel newspaper and you will be ready to rock and roll. You should never have to advertise again as your name will become one with those individuals looking for quick cash. When doing these types of deals, you always want to make sure that your investment is secured by the real estate or at least some form of collateral (in case the person defaults). Most of the time, you can see getting 10-25% for the use of your money for a two weeks to a month (sometimes a great deal more).
The big question comes in when you say, “Great…I love this concept, but I don’t have any money to rent out”. I hear this all of the time and that’s where the creativity comes in. The best way to have the money to make you the money is through unsecured lines of business credit. Whether you have a business or not, whether you have great credit or not, there are ways that you can establish yourself as a business and obtain lines of credit in the hundreds of thousands of dollars. Imagine making 100% return annually on $500,000 in credit lines? Hmm, let’s see…That means that you would be making $500,000 annually using other people’s money. Forget about what you pay for interest, there are ways around that too!
Each and every day I make money showing others people how to make big money with other peoples money (whew, that was a mouthful). There is no reason why you cannot do the same. It takes creativity, desire and above all, it takes the know how. Why not give it a shot?