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Up until recently, investing in large residential and commercial real estate was off-limits to you, me and the 99%. Now, more and more companies are offering low-cost ways to access all those exclusive investment opportunities that used to be for just the rich. The majority of options allow you to collect quarterly dividends and interest, all without the hassle of actually becoming a landlord.
But just because you can invest in real estate doesn’t mean you know what to do or where to start. And, all this inflation and recession talk makes dropping money into real estate seem 10 times scarier: Yesterday, housing prices were out of control. Today, mortgage rates are skyrocketing. Tomorrow, real estate companies will be reporting their quarterly losses. Why risk all that volatility — especially when you’re still trying to figure out where to start?
Luckily a company called Connect Invest lets you earn passive income from real estate investments but offers a more stable investment style that’s perfect for newbies. And you can get started for just $500.
Buy a Rich Developer’s Debt and Make Them Pay You Back with Up to 9% In Interest
Connect Invest allows you to invest in debt and make money on those high interest rates. How? By investing in real estate short notes. And, you only need $500 to do it.
What are real estate short notes? So glad you asked.
To put it simply, investing in real estate short-term notes means you purchase the debt that wealthy developers take on to fund real estate projects. Each note has a defined term length of six, 12 or 24 months, so you know exactly how long it will take for the note to be paid back to you. On top of that, when you invest with Connect Invest, you’ll receive monthly fixed interest payments between 5.5% and 9% throughout the investment term.
You could earn a legit passive income with those rates! And even the lowest 5.5% is way better than what you’d get if your money was just sitting in the bank. Oh, joy. I’ve received my 0.03 cents in interest for the year.
O.K., But What are the Risks?
While short notes are generally safer than other forms of real estate investments, there’s still an element of risk involved. For example, if the borrower defaults on their loan, you’re likely to lose some money.
That’s why you’ll want to work with companies like Connect Invest who have the experience and know how to minimize your risk.
So, how would Connect Invest protect your investments? For starters, each real estate project is carefully reviewed based on things like loan-to-value ratio, borrower history, project location, etc.
Next, all loans are collateral-backed by real estate. In the rare event of a default, Connect Invest’s sister company forecloses on the property upon the investors’ approval to recover your investment.
And finally, your invested funds are spread across a portfolio of real estate loans rather than a single project, greatly reducing your overall risk.
Connect Invest lets you decide your risk tolerance and for how long you’d like to invest your money, then your funds are invested in a diverse portfolio of residential and commercial real estate projects.
Just that short notes make great short-term investments! As soon as the six, 12 or 24-month note term is over, you’re free to do with your money as you please — whether that’s cashing out or buying back into short notes. In certain cases, you can even withdraw your investment before a note-term is over if you need to.
How to Get Started
The only thing you need to start investing in short notes is $500 and an internet connection.
You don’t need to be an accredited investor, but you do need to be at least 18-years-old and a U.S. citizen or permanent resident. Sign up for your free account here. Then just browse through Connect Invest’s listings to select the right short notes for you and sit back and watch while all those wealthy developers make your money grow.
Past performance does not guarantee future results or success. The material contained herein does not constitute an offer to sell or a solicitation of any offer to purchase these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.