My bank is the worst.
It holds onto my hard-earned money and gives me close to nothing in return: just one-tenth of 1% interest on my savings account.
If your bank is anything like mine, you’re probably in the same position.
But you don’t have to take this anymore…
Today I’ll show you three powerful ways you can fight back — and earn double-digit yields while you’re at it.
“Peer-to-Peer” Lending
In these weekly newsletter articles, we usually write about a new type of investing known as “equity crowdfunding.” That’s where you invest in private startups and receive ownership stakes in return.
But today, I’m going to introduce you to a different sort of crowdfunding. It’s called peer-to-peer lending, or “P2P Lending” for short. This is where people like us pool our capital, lend it to others, and earn interest on our loan.
Our capital is used to help people consolidate their debts, pay for home improvements, or even build multi-family apartment buildings. And here’s the best part…
With P2P Lending, there’s no traditional bank involved. Instead, various online businesses provide due diligence to help us evaluate risk, and then match us with borrowers.
By cutting out the middleman, borrowers can lower their costs — and lenders like us can earn market-beating yields.
Let me show you a few of the online businesses that offer these opportunities.
Lending Club & Prosper
Two of the oldest and most popular P2P lending sites are Lending Club and Prosper. They both specialize in personal loans.
The way they work is simple. Instead of a borrower paying a credit card company an exorbitant interest rate like 21% per year, they go to Lending Club or Prosper instead.
There they might borrow $5,000 at an interest rate of, say, 14%.
Then a couple hundred investors like us each contribute $25 towards the loan.
Is this risky? Well, since some investors won’t pay back their loans, there will certainly be defaults. The key to investment success here is to build a diversified portfolio of loans…
For example, historically, 99% of Lending Club investors who’ve invested in more than 100 loans have earned positive returns — including me.
You see, I’ve been investing with Lending Club and Prosper for more than five years. Currently, my average returns are nearly 10%... and that includes the defaults.
Crowdfunded Real Estate
According to Ernst & Young, as of about a year ago, investors had poured ~$8 billion into crowdfunded real estate.
On funding platforms including RealtyMogul, Fundrise, and Groundfloor, investors like you can get access to two compelling investment options:
The first is private REITs (i.e., real estate funds) — and keep in mind: historically, private REITs have returned far more than public exchange-traded REITs.
And the second is individual real-estate deals, which is where the biggest returns are…
These deals include everything from single-family fixer-uppers, to commercial multi-family complexes with hundreds of units.
Yields reach into the double digits, with some deals advertising returns of 20% or more.
Small Business Lending
Then there are websites for crowdfunded “business loans.”
Similar to LendingClub, these sites enable individuals like you to pool your capital and lend it to others…
But instead of loaning it to other individuals, you make loans to small businesses.
For example, Honeycomb Credit helps provide small businesses with capital so they can grow, and helps investors like us get access to above average yields.
And because Honeycomb has lower costs than a bank (for example, it doesn’t have any physical branches), businesses pay lower interest rates, and lenders can earn market-beating returns.
The average annual yield listed on the company’s website today is roughly 11%.
3 Simple Ways To Earn Double-Digit Yields
So there you have it:
3 simple ways you can fight back against the horrible returns your bank pays you.
These yields are 10,000% higher than you can earn on most savings accounts. In fact, they’re even higher than the average yield of Treasury bonds — about 500% higher.
And because these websites are still pretty new, competition for getting into “hot deals” is relatively low. So the time to jump in is now.
Happy Investing!
P.S. If you’d like to get in on the same income-generating deals that Wayne and I invest in personally, consider joining our premium research service, Income Unlimited.
To learn more, call our VIP Member Services department at 1-844-311-3191…
Or click here to schedule an appointment with a VIP Member Representative »
Best Regards,
Founder
Crowdability.com
