Investing can yield high returns, especially if you choose the right platforms. In the digital age, there are more investment platforms than ever before, making it difficult to choose the best places to put your money if you want to see it grow. Here are some of our favorite new investment platforms.
Peer-to-Peer Lending Platforms
Peer-to-peer (p2p) lending platforms, such as Lending Club and Prosper, lend money to individuals at lower interest rates than banks do. While consumers may use these loans to pay credit card debts or cover themselves in emergencies, investors can make a lot of money if they invest in these loans appropriately. Investing into peer-to-peer loans involves partially backing the loans you expect to make the most money. You will receive a part of the return when the loan is repaid.
In order to make money from investing into peer-to-peer lending platforms, you have to decide which loans are likely to give you a high return on your investment. These platforms’ histories are a matter of public record. You can check the loans they made to individuals and find the return on investment on each loan using websites like Nickel Steamroller. If you’re looking for an average ROI of over 11.75 percent, filter search results by this ROI in order to get a clearer picture of the type of loan you want to invest in. After checking the history, you can open an account and invest in peer-to-peer loans that you think will make the most money.
DIY Stock Investing Platforms That Use Big-Data for Big Gains
In the age of the internet and big data, you no longer need a stock broker to participate in the stock market. While self-service stock investing tools like E-Trade and TradeKing (formerly Zecco) have been around for years, some investors have not had the confidence or knowledge to manage their own portfolio. But now there are new services that are using big-data to bridge that gap and allow you to manage your own investments with less risk (and stress). Here are a few worth checking out:
Idea-based investing through Motif: Motif has a new take on grouping stocks. Motif is an intelligently basket of 30 stocks surrounding a belief, idea, or insight. For example, you can invest in a Motifs such as “Big data” or “Chinese solar” or “Modern warfare” to name a few. With their self-serve web-based platform you can start selecting Motifs in just minutes. Click here to open a Motif Investing account.
Big-data + technology = better returns. With the advent of Big Data in recent years, a few startups have been leveraging technology to create investing tools that optimize your portfolio in ways that were never possible until now. Analyzing data points such as your age, risk tolerance, market-trends, tax-loss projections, and dozens of other factors, websites like Betterment and Wealthfront have cracked the code to big-date based investments. And because these tools don’t rely on humans to manage every account, you can save thousands of dollars on fees.
Trust Deed Investments
Trust deed investments are little-known investment vehicles. In a trust deed investment, you purchase promissory notes on real property, which means that property owners have to pay their mortgage to you each month.
If a borrower defaults on the mortgage, you must go to court to begin foreclosure proceedings. However, the fact that the loan is backed by real property is an advantage because it means you are almost sure to recoup your loss should the borrower fail to pay the loan back.
In order to benefit from trust deed investments, you need to do some research prior to making any investments. When evaluating potential investments, consider the following information:
- The market value of the property and the borrower’s current equity in the property. These two factors help you estimate how much you will recoup should the borrower default.
- The borrower’s credit rating and credit history so that you can evaluate the likelihood of default.
- The integrity of the mortgage loan broker through which the investment is being made so that you can avoid scams.
- Loan provisions, including how the loan is set up and what procedures you must follow to recoup your loss in the event of default.
If your research shows you that the borrower and mortgage loan broker are trustworthy and the property is worth a significant amount, you stand to gain a return of between 11 and 14 percent on your investment.