High Return Residual Income Is Possible, Not MLM
Face it, when you hear the term "residual income" associated
with a home business or income stream, most of the time you can
bet the business is MLM. You see, residual income is a buzz term
used by MLMer's to distract your attention away from the reality
that they are selling MLM (I am NOT bashing MLM, just a fact).
This is because, regardless what your personal belief is about
MLM, many people have been pitched about some form of MLM "over
coffee" so much they don't want to hear about it any more. The
good news is that residual income does NOT have to be MLM
There are other sources of residual income and I will summarize
one in particular that I think requires the least knowledge and
skill, and still produce a residual income stream for you.
You have probably heard the commercials on TV about companies
that purchase structured settlements from people. Let me
explain, lets say you won the lottery or received a settlement
from a court case of some kind, and lets say the payout was
$500,000. Lets further say you were receiving monthly payments
over 20 years. At the end of those 20 years, the paying entity
would have paid you $500,000.
But lets say you all the sudden have an urgent need for more
money than the monthly payments are providing. What do you do?
Well, you could SELL your structured payment to someone that's
willing to buy it. Why would someone buy it from you? Because
they are not going to pay you anywhere close to $500,000 or
whatever the remaining balance is and they will structure the
purchase so that they make a profit. Lets say there is $475,000
left in payments. They might not pay you any more than $150,000
for that. You get what you need, immediate cash, and they get
what they want, a return on their money.
The people that buy up structured settlements are not banks
usually, they are individual investors or investment groups.
And in order for them to buy large settlements like this, they
might need more capital to work with. Where does that capital
come from? Well, it could come from people like you, or me,
people who want a larger return on their money than a bank, but
that do not have the personal skills or connections to do this
on their own.
Why would people like you and I give money to these groups?
Obviously to MAKE money in return. But, since these groups or
individuals are not banks, their relationship with you and I
can't be considered as an "investment". So what will they ask
of you and what should you expect? Often, what they will set up
with you is a "loan" situation. You can loan money to whomever
you want and for any reason, legally. You can agree on the
terms, or have flexible terms. In that way, you loan money to
the investment group, they take your money and utilize it along
with other "loaned" dollars. These groups then use their
expertise in their chosen investment model to earn a return on
the loaned funds. This return must be large enough to pay their
own pockets with room left over to pay those who loaned the cash
in the first place. Sometimes the returns paid on these loans
can be quite high for people like you and I. It is possible to
earn a very good income from this type of opportunity.
Other similar investment groups use the loaned funds in
different ways. For example, I am familiar with one such
investment group who's invested funds (on loan to them from
others just like you and I) are at work in the very lucrative
FOREX (Foreign Exchange) and COMEX (Commodities Exchange)
arenas with a small amount in the Stock Market. Other
investments include successful Internet Marketing concerns as
well as their very own Sports Arbitrage program. Profits from
these investments are used to enhance their programs, increase
stability for the long term and best of all, pay back loaned
funds at returns up to 10% a month. I know this sounds
extremely high, but if you know anything about successful forex
or comex traders, the good ones make a ton of money.
So, how do you find opportunities like this? They are not
common, that's for sure, but if you look around you can find
them. Looking for local investment clubs in the various search
engines like google can be helpful. You can also get
recommendations from associates whom you know invest. If they
don't directly invest in this manner, they might know someone
that does. However you find them, I suggest that at least some
of your available funds are placed into such a program.
About The Author: Experienced Business Consultant, Jeff
believes that every investor should include high yield products
in their portfolio. Learn how to get his managed choice here
Mazu Business Pack www.MazuBusinessPack/ and click on
"Residual Income" www.MazuBusinessPack