Posted 20 November 2012 - 09:05
Additionally, One thing I've recently invested in is called MicroFinancing. My investment is part of a fund that invests in third world country's which provides loans to struggling business's. I choose an interest rate and a risk that I'm comfortable with and sign + fund clients. They then repay the loan back over 12 months in monthly instalments, but I reinvest the principal every 6 months and disperse the interest to a bearing account at my financial institution. I currently run a calculated 3% risk.
$1000 principal lended into South Africa at an agreed interest rate of 13%, Total repayment $1130.00. After 6 months I obtain $565, reinvest a loan to another party at $500, and disperse $65 for myself. I repeat this at the 12 months.