Investors are always looking for new ways to generate a return on their money.
But as we discussed yesterday, those who have fixated on the stock market haven’t fared too well over the last fifteen months. That’s why we’ve been talking about an alternative investment strategy all week.
We call it the Income Snowball Strategy. It’s all about creating passive income outside of the stock market.
The beauty of this strategy is that there’s no barrier to entry.
It’s not like real estate investing where we have to come up with large down payments for every property we want to buy. Instead, investors can get started with just $25. That’s it.
And that’s because this strategy utilizes what’s called ‘crowdlending’. This is a financial model that connects borrowers with investors.
In other words, crowdlending allows investors to be the bank. We can pool our money together to issue loans to qualified borrowers.
This strategy provides several advantages for retail investors. They are:
- Higher Returns
- Monthly Passive Income
- Diversification
- Supports Small Business
Crowdlending provides investors with much higher returns than normal. Certificates of deposits (CDs) and bonds just don’t compare.
As I write, a 10-year Treasury bond currently pays 3.4% interest. And according to Bankrate.com, the average 5-year CD rate in the U.S. is currently 1.2%.
Meanwhile, our suggested approach to crowdlending can generate returns between 9 and 15%. Over and over again.
That’s been our experience. And we use legitimate credit risk analysis to build a robust loan portfolio – just like the banks do.
What’s more, these returns come in the form of monthly passive income. The bigger our loan portfolio gets, the more cash flow we have coming to us each month.
This is money that we can use for anything we want. My preference is to reinvest it. But there are no restrictions whatsoever.
Building a crowdlending portfolio also helps us diversify our assets. It’s a great way to put money to work outside of the stock market.
And finally, crowdlending helps enable small businesses.
It’s a way for small businesses to access capital without going through the banking system. They like that. The banks don’t always treat small business well as it is.
So by helping fund certain loans, we are directly supporting small business ourselves. And in return, those businesses send us a small portion of their revenues each month.
Of course, the key to making it all work is proper credit risk analysis.
We need to do our due diligence and build our loan portfolio strategically. That’s how we maximize our returns with crowdlending.
Ready to learn more?
We just made our new micro-course available to the public this week. Those interested can find it right here: The Income Snowball Strategy