Lets face it a lot of scared investors do not want to manage a property or have their name on a mortgage. But there are still investment opportunities that can earn you an interest well about the normal index fund.  There are investment companies that give interest rates of generally 15% and up and can include profit sharing.

These companies take your money along with a lot of money from other people and use it to accomplish a project. Sometimes they will be doing a property flip, or developing condos or maybe just rezoning some land. But the general consensus is that they use your money to increase the value of a property and then resell or refinance the property to pay out all of the investors.  These deals often deal with millions of dollars, but this is spread out over many investors.

If your looking for something a little more exciting then a private fund, then I would suggest talking to a local real estate investor. Investors love to do joint ventures (since they don’t have to use their own money). This way all you will only need to sign a check, they will find the property, buy the property and then handle all the management issues. From my understanding if you pay all of the down payment you will receive 50% of the profits and then the investor will get 50% after your initial down payment is repaid.

Those are two easy way you can diversify your portfolio without having to go out and purchase your own property. Real estate can get you solid returns without ever needing to fix a toilet at 2am. Please post any questions you might have, I’d be happy to answer them

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Filed under: Investments, Portfolio Income, Real Estate