22 Jul Banks pay 1% interest – how about making 1,000%
I remember how excited I got once when I was in the surf at Burleigh Heads and I found a $20 note floating by. I grabbed it quick smart before anyone else made a play for it and stuffed it into the pocket of my board shorts.
Free money. There’s something intoxicating about the very thought of it.
I’m thinking we’re not that far away from that now. Not so much free to keep like my $20 note, but free to use for a while and give back.
Like, you can be given $100,000, get to play with it for a year, then give back the benefactor (bank) $102,555.
The trick is what to do with it while it’s yours.
Now, if we’ve got a commercial use for it like say a small subdivision, we pay a little bit more for it, but not much more.
My second development was a 4 lot subdivision. It was during a credit squeeze and the banks weren’t lending. I got some ‘hard’ money at 23% interest. The feasibility wore 23% and I did well. I never dreamed I’d see the day when the cost of money would be one tenth of what I paid then.
Want to capitalize on the cheap money slushing around?
Remember the deal I discussed yesterday about the girls doing the splitter?
The return for the teacher / money partner is $80,000 profit on an investment of $250,000 over 5 months. That’s a return of 32% over 5 months or 76% annualized. Remember the bank is 1%.
The return for the student is $80,000 on an investment of $0. It’s either infinity or it just doesn’t matter. I think she should put $1 into the deal to help her friend. At least now we can calculate her return. It’s 19,200,000% annualized.
Eat your heart our CBA!
Do you want to learn these strategies plus a lot more? Stay in touch with us and we’ll teach you a lot more than just this!