Sources of INVESTMENT CAPITAL
Identifying Sources of Investment Capital
To invest in anything, you will first need investment capital. This is a problem for many people who would like to get started in investing. Often there is a lack of initial startup capital and/or a lack of ability to identify the low ROI investment capital that they may already own.
Today, we would like to identify a few different sources of Investment Capital that you can free up to earn a higher rate of return. Some may be obvious, but others you may not have thought of before. Here is a breakdown of traditional and creative sources of capital that you may choose to redirect to higher earning investments such as Real Estate!
Savings Accounts or Money Market Savings Accounts
These accounts are probably the most basic “investment strategies” in the world, and they are also one of the least profitable. While these two both pay slightly higher interest rates than a regular ‘ole checking account, you’re still going to be hard pressed to make any meaningful income from these ultra-safe choices.
Certificate of Deposits (CDs)
CDs are like savings accounts, except your bank won’t allow you to access your money for a certain amount of time without incurring a penalty. Banks like CDs because they get to keep and use your money for a longer amount of time, without having to hold your cash on hand. You like CDs because they pay higher interest rates than cash in a savings account. However, in today’s low interest rate environment, you’re lucky to find a CD paying about 4-5%. Rates like these make this type of investment hardly worth your time if you’re looking to build any substantial amount of wealth within 20-30 years.
Interest Paying Bonds
Interest Paying Bonds are basically IOUs from businesses to investors. You invest a fixed amount into a bond, and the company agrees to pay you a certain interest percentage back. Of course, this is a simplification. Interest rates obviously vary significantly, depending on your type of bond and the current interest rate environment. But in general, you can expect bonds to yield anywhere from 1-4%.
Dividend Paying Stocks
When you purchase stocks, many of those companies pay out a portion of earnings to shareholders on a regular schedule, these are called dividends. Typically, dividend paying stocks are the larger, more established companies. The percentage rate of dividends varies by company. If you’re an investor in Ecolab, you’re currently looking at 0.94% dividend rate. Investors who feel like juicing up those dividend yields often move some money to a company like AT&T, whose annual dividend yield is 6.15% right now. All of which yield much less than the bare minimum Return on Investment that they could earn with Real Estate Investment Results.
In the stock market, the long-term average of 10% is only the “headline” rate: You’ll lose purchasing power of 2% to 3% every year due to inflation, which puts the market’s average inflation-adjusted return at about 7% to 8% annually. Which is better than most investments, but with Real Estate Investment Results, every investor earns a baseline of 7% and special opportunities arise that earn even more. Our deals pay out every 180-360 days so your money is not tied up.
Sell Businesses
Businesses can earn you a very nice living if you are running them efficiently, but some investors may get tired of dumping time and energy into something that they may not be as passionate about as they used to be. The decision to sell these investment businesses may be the first step to you finding a new investment niche that will earn you a higher ROI and will better fit your current lifestyle.
Sell Valuable Real Estate
If you have Real Estate that is not being used, is not earning a high ROI, or is taking a toll on your emotional or physical health, consider cashing in these valuable pieces of property to let us do the dirty work for you!
Single Family Rental Houses
Multi-family Rental Properties (Duplexes, Triplexes, and Quads)
Apartment buildings
Trailer Parks
Short Term Rentals
Vacation Rentals
Real Estate Investment Trusts (REITs)
Farmland
Timberland
Hunting Land
Home Equity Loan
If you need investment capital, you may take out a home equity loan to finance your next investment deal. The benefit of these loans is that they come with flexible terms and low interest rates compared to traditional home loans. If you are working with a reputable company that is covered with many facets of security to protect your investment, you have nothing to worry about.
Sell Valuable Assets /Collectibles
Collectibles are only worth what someone will pay for them – there is no business, no cash flow, and no guarantee that there will be a future market. Owning collectibles for future gains relies upon the “greater fool” strategy, i.e., buying something in the belief that someone (the greater fool) will come along later and pay more. Finding a buyer for a particular object can be time-consuming without any assurance that the desired sales price can be achieved.
Most experts advise potential investors in collectibles to be sure you enjoy the object since there is no guarantee when or for how much you can sell it. Additionally, the collectibles market is swarming with counterfeiters and con men. Why hold on to something that isn’t earning you a high rate of return? Cash in on your valuable assets and collectibles such as these to invest in a better future for you and your family!
Vehicles
Boats
RVs
Gold
Silver
Jewelry
Art
Collectibles
401(k), Traditional IRA and/or Roth IRA
Almost every investor possesses a 401(k), Traditional IRA and/or Roth IRA. You can invest through your IRA and when the earnings come back to you, they are tax-deferred or tax-free depending on which type of IRA you possess. We can help walk you through this process.
Conclusion
In the world that we live in today, getting access to funds for your investments requires you to look beyond the traditional sources. It means that the level of your creativity needs to edge out the rest of the individuals. It is what differentiates successful and unsuccessful people in life.
If you have investment ideas that you think, when implemented, will take over the world, don’t sit on it. Try now by using the above creative financing options to generate enough money so you can establish a strong investment empire.
You worked hard for it! Now let us work hard for you!
—Joshua Dudgeon, CEO & Founder, Real Estate Investment Results
