If you are starting out in commercial real estate there are 5 questions that you need to ask yourself. Should I buy an investment property near me or can it be anywhere? How much money do I have and what can I buy? Questions like these will help you make an informed decision and set you up for success.
Many people also want to know if there can ever be safe high yield investing. It is the dream of most investors to discover something which allows for a safe high yield investment opportunity so that they can turn the risk versus reward ratio in their favor. While we would all love to invest safely and get high returns we need to be realistic here.
The truth is safe high yield investing depends on your own definition of what is safe and what is high yield. To some of us, safe investments mean almost no risk whatsoever while for many others a better description might be “safer” investments. And of course, high yield is very much in the eye of the beholder. I might consider 10% to be a very high yield while you could turn your nose up at anything less than 25% fitting the description.
So what can be done for someone who wants both a high yield but also insists on having a safe investment at the same time? Well to even get close to this kind of compromise you would need to have a largish investment of around $100,000 that you are prepared to tie up for at least 60 months. And for that kind of level of investment, you might expect an interest rate of 4% through a Certificate of Deposit (also known as a CD). Not exactly an interest rate that is going to set the world on fire but that unfortunately is the price of safety and low risk.
At this point you are probably thinking but what about all the adverts you see on the internet offering much higher yields and guaranteeing the safety of your investment? Well before you start thinking about putting your hard-earned cash into these investment schemes you might want to do some very serious checking on the people and companies offering them. At the very least you should call the Better Business Bureau and also speak to your state’s consumer affairs office. It is vital that you keep in mind that high yield and safety are usually very unlikely bedfellows and of course the scammers prey on the greedy.
So to answer the question of whether you can actually find any safe high yield investment opportunities is really down to your own definition of the term.