Where do I invest $11,000 – $49,000 for x-amount of time?

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April 24th, 2006

Short Term – CDs
Buying shorter-term CDs is now going to be more profitable for you, because you now have the ability to roll-over larger amounts. Shorter-term investments allow you to take advantage of interest rates rising (as they currently are).

Medium and Long Term – Real Estate
Looking at medium terms in the real estate market usually means buying notes or REITs. Buying a REIT is the less-involved strategy, but you will want to check in on it about once a month to make sure you are getting your money’s worth.

Buying notes is more complicated, but also more exciting and potentially more profitable. Most local governments hold auctions for tax-liens. When someone does not pay their taxes, the local government can put lien against their real property, and eventually these notes will be auctioned off (see NPV for a discussion of why). At these auctions you bid on notes by the percentage you are willing to accept in interest payments.

After a specified amount of time the person does not pay their lien, you can foreclose on their home and you will acquire the property. This is also a great time to flip your interest in the property to a local investment company, who will pay big bucks for the opportunity.

Long term you should look for an investment property which fits your style. Renting to a student population means more damages and repair calls, but you can be more confident that you will be able to rent the property. There are myriad options here, so check out some of our real estate articles for ideas.

Entry Filed under: Financial Investments
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