Where Can You Invest Your Money These Days?
People are looking to invest their money so that they can save for retirement or just so that they can put money away for other types of activities, other types of expenses such as trips, or whatever. The problem is that people are having a hard time finding places to invest their money that gives them good returns.
There used to be the old days when you could invest in the stock market, or you could invest in the stock market through things called mutual funds. But people aren’t happy with the returns that they’re getting with the stock market, specifically stocks and bonds. It’s very volatile. They’re not getting the returns they want or need.
They also used to have savings accounts. Savings accounts used to be able to provide an okay return. Now you get less than 1% from your savings accounts. Same with GICs. GICs, aren’t performing very well either. You might get 1, 2, 3, or maybe 4% if you find the right GIC.
There are other things out there now called cryptocurrency. You’ve got things like Bitcoin. You can invest in those, but to me, that’s very speculative. There’s nothing concrete with these investments. There’s nothing tangible about investing in Bitcoin. It’s like investing in an index, right? There’s nothing there. It’s just the performance of something. I don’t understand cryptocurrency at all.
And then there’s real estate. People have thought about investing in real estate for a long time. And yes, real estate can be a viable alternative for some people depending on how active you want to be, and how in-tune you want to be with the investment that you are investing in. So you could do things like wholesaling, or you could do things like fix and flip, or you could do something like buy rent and hold.
I mean, to make money with buy, rent and hold with single-family homes takes a lot of single-family homes If you want to make it worthwhile. Unless of course, you have a lot of money that you can put into the deal … where you can buy the property outright or put like 50% down. But even still, your return on your investment is going to be pretty poor If you’re putting that amount of money into the real estate purchase.
The only real way you can make money in real estate is through leverage. Meaning you put a certain amount of money in the deal and you go out and you borrow the balance, the other long-term investment amount … a mortgage.
I think that people should be looking to invest in private equity.
Private equity is where you go out in and you invest in a property, usually a larger property, like a multifamily home, or a multifamily building, like an apartment building. So not a home, but an apartment building, but you invest in the apartment with other people. So, what you’re doing is you’re actually buying shares or you’re buying equity in that investment with the hopes of that investment improving. And also there are usually dividends that come with those private equity investments.
So private equity is something to think about when you’re looking for a place to invest. You should invest some time and educate yourself to figure out what private equity investments are all about.
