Double Your Money

Outside of the blackjack table, roulette wheel, or a rich uncle, you will have to make smart decisions to pursue the opportunity to double your money. Here is some general guidance that, over time, may help you reach some of your financial goals.

Doubling money can potentially be done in six years, if you can manage 15% interest earninns annually (but this scenario is not considered commonplace by any means). Hypothetical 15% annual earnings on an original principal investment of $30,000 are illustrated below:

Original Investment Year One - $30,000

End of Year One - $34,500

End of Year Two - $39,675

End of Year Three - $45.626

End of Year Four - $52,470

End of Year Five- $60,340

Investing In Trust Deeds

Most investments that yield 15% interest rates, like the scenario depicted above, tend to be risky. One investment that can produce similar returns with generally less risk, is a Trust Deed Investment. Trust Deed Investments are loans to individuals or companies that pledge their real property as collateral. A typical Trust Deed Investment can yield an annual return of 10% - 12%.

An example of a Trust Deed Investment could be lending money to a builder for the purpose of constructing a pre-sold home on a lot owned by the builder. The builder’s land and any improvements serve as collateral for the loan, while the funds to be allocated for construction are managed by a third-party and disbursed to the builder only as approved phases of the construction are completed. With a pre-sold home, you are often working with a motivated builder that is eager to complete the construction and sale of the home.

Investing in Trust Deeds, while yielding a 12% annualized return, could grow your investment as follows (assuming a beginning principal balance of $30,000 and no interruptions in interest accrual and receipt):

Original Investment - $30,000

End Of Year One - $33,600

End of Year Two - $37,632

End of Year Three - $42,148

End of Year Four - $47,206

Using Trust Deed Investments, with a 12% annual rate of return, you could theoretically see significant gains to your original principal investment in just five years. Trust Deed Investments may be an investment option to consider adding to diversify an investment portfolio.