How Do I Find A Bank That Has A 12% Interest Rate On A Savings With 50,000?
I am getting 50,000 out of a property in a couple of months (buyer already made offer so we have to rehab, then contract) and I would like to know if anyone knows of a savings bank that would have a 12% rate or higher..... I've been told that banks in Mexico have this rate but I would rather choose to keep the money in my own country 
I would like to see if any of you have ideas of how to turn 50,000 into a large consistent stream of money per month in the form of return on the interest rate. It's important (personally) that I find a way for this to work as 50,000 doesn't come by everyday~ Please Help 
~Kristin
Hate to hurt your expectation but $50K wont (most likely) be enough to retire on $12% interest or even on 25% that I would like to sugest as a viable solution. Perhaps investing in tax lien certificates (25% in IL , FL or TX) would do a good trick.
I hope that other TCI memebers from those states would be able to help you further. Also check TCI's "Tax Lien Forum"
[ Edited by omega1 on Date 01/26/2004 ]
So sorry not available from straight away lending organizations. How are they going to make any money at 12% payout.
My suggest you consider buying mortgages with some discount that way you can achieve the yield you desire.
Lets see that is a return of $500 a month on $50,000. Can do. However you should be prepared to have to reinvest at least every three years. Reason for which is that the usual source will not want to pay that kind of interest any longer then necessary and most transactions of development and so forth would terminate under 3 years.
Normal case. Developer is borrowing money for the first part of a developments. Engineering, Arch land purchase etc. etc. So he puts up a piece of property and borrows against it and pays a high rate of interest to obtain the money to fund the first part of his deal. Well in a year or two the construction loans start to kick in so he does not need the money any more and from the construction funds he pays off the loan that made it all possible you. The normal mortgage broker can handle this type of thing. We do it all the time.
Cheers Lucius
If you find something like that please let me know!!!! I have been trying to find how much money I need to put in one account to get 5-7%. Anyway the best I could find at local banks right now was 2.025% on $100,000.00. I do have my personal financial advisor looking. You are only talking about $50,000.00. My advisor told me to get those kind of rates, I would need to put around $600,000.00 in one account. I will get back to you to let you know if there are any good rates for just $50,000.00. I really doubt though.
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One thing you can do is contact your local
hard-money lenders. I have a friend who invest with a hard-money lender in Los Angeles. They typically give him a return of 10-12% and they keep all the points and garbage fees.
You might even want to hook up with an
investor in your area who you can get your money secured by a First Trust Deed at 12% return.
Best Riches,
Jeffrey Adam
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I might have an answer for those looking to get a good return on their gains. My husband and I are looking at some commercial sized apartment buildings but need an investor to cover downpayments. We are willing to offer attractive returns for this money. If anyone is interested please reply. My husband and I could crunch some numbers and see if we could make this a win-win situation for everyone!
lol, I know....12% is a little far fetched! But it's worth a shot The best rate I've found so far is at my local Bank of Hawaii ~ they have a bonus savings that offers 3% on 25K and above but I think I'm going to toy with some of the good ideas you guys gave Investing in the HML sounds pretty good ~ ideally I would like a 'no risk' investment but I already know that risk is a factor when you are looking for such high returns. My fiance' is also getting almost 50K from selling his old home so we may put our money together ~ you're right, 50K isn't that much to hope to live off of in the form of returns!
~Kristin
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I realize that this is a site that deals with real estate investing however have you considered a good balanced mutual fund that would include a mix of both stocks and bonds? Some of the good balanced funds average 12% or better and remain more stable during a down market than some other mutual funds. You may want to look into that or some other alternatives such as municipal bonds that are very safe overall. It sounds like you just want to invest this and make it grow over a long term. It really won't give you a monthly income though.[ Edited by Sandbahr on Date 01/26/2004 ]
Tinman and Lufos:
Try "The Norris Group in Riverside, Ca. They are a hardmoney lender that will
invest your money secured by a first trust deed. They will even do loan servicing so that you don't have to collect the payments. They use to pay 10-12%.
You may need to call to find out what they are paying now. You can also try
Vanguard Funding in Anaheim. They do the same thing.
Best Riches,
Jeffrey Adam
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