If you have a nest egg sitting around not earning you any money you may want to consider becoming a professional investor.
Mom and Pop Lenders/Professional Investor
One good example of how a professional investor works is the “peer to peer” market; connecting mom-and-pop lenders with borrowers.
Professional investors are now getting into this market. If it’s working for mom and pop lenders, as well as professional investors, then it could certainly work for those who want to make profits with their extra money.
Reportedly there are fat returns to be made. Professional investors in these peer to peer firm like Prosper Lending Club Corp and Marketplace, say that investors can generate annual return of 10 percent or higher by making pieces of loans or whole loans to fellow Americans. These firms have also said that those investors who spread their money wide are very unlikely to lose money.
Another alternative hard money lending method are Cash Advances.
Not to an individual, but to a business. The business gets a sum of money from a lender and the lender then gets a percent of the business’ daily credit card profits. This happens until the loan and/or a pre-determined fee is paid.
Who Needs Help
Retailers such as restaurants are using this method of getting money.
These business to consumer (B2C) businesses have limited options for financing since they do not have factories, machinery or wholesale invoices to borrow against. Professional investors can make 20 percent by lending to these businesses.
For example, one restaurant owner took out a $40,000 advance on his charge card receipts.
The lender said he would take 12 to 15 percent of the restaurant’s daily charge card sales until he had received $60,000, which would be about a year to 15 months giving the lender an annual rate of 34 to 40 percent. But the restaurant did even better and the lender got his money in seven months which means his annual rate of return was even higher.
Become a Broker
If you don’t want to put your own money down to invest in these companies, why not be the middle man who gets the business and lender together in a cash advance lender to business deal?
You could charge a set fee for a percentage of the deal that is made because you found the business owner someone to lend him money or you found for the lender, someone he could loan money too.
Brokers on the Internet
There are many brokers working on the internet in different niche markets, so the business models to go by are already written. To be a broker of these private money deals, you don’t need an office, so you have no overhead.
Just learn all you can about these alternate lending deals. Perhaps find a partner. If you are a quick learner, are a disciplined financial steward and have connections, this could be a very lucrative business for you.
Call Bob Anselmo at: 516-850-1399
Email for more info at: email@example.com