Dear FutureMoneyTrends.com Member,
It was Albert Einstein who said,
“those who understand interest earn it; those who don’t, pay it.”
Since 2000 BC, bankers have been making loans and earning interest. Today, one could make a solid argument that they have become the rulers of the world. This week’s Weekly Wealth Digest isn’t about the bankers themselves, but their strategy for accumulating income.
Since 2006, peer-to-peer lending has been on the rise. At first, it seemed risky, and it was. But today, there are even publicly-traded companies that facilitate these transactions, with financial disclosures and an added layer of transparency for both investors and lenders.
The industry itself is now in its 10th year, with the original peer-to-peer lender loaning out over $13 billion, with a very low default rate. These companies take in loan applications, typically from credit-worthy borrowers looking to pay off higher interest rate credit cards.
One such company that we are suggesting is lending money to borrowers with a 700 credit score, who make over $70,000 a year, have no bankruptcies, no tax liens, and have a great income history. These loans have become a win-win for these borrowers, receiving an interest rate between 5 to 8%, much lower than the average interest rate on a credit card right now, which is 17.29%. For investor-lenders, you receive a healthy return on your money that is completely outside of Wall Street and the traditional banking system. This offers income investors further diversification, and most importantly, a yield that is much higher than CDs and bonds.
As a lender-investor, you can buy individual loans or spread your money out, with as little as $25 towards a peer-to-peer loan. The lender company, after completing the application processes, collects the payments on your behalf, and even deals with delinquent customers.
Essentially, it’s a turn-key banking facility for investors looking to use the oldest passive income strategy known to man. For investors looking for fixed income, you shouldn’t be scared off by this strategy. While not mainstream, it’s exactly what the richest people on earth do with their money. In fact, they’ve been doing it since the days of Babylonia.
Tomorrow night, log in to our premium area to receive our top suggestion for peer-to-peer lending companies, who can help you compound your wealth through the business of banking.