Different Sources of Income

 

What’s better than having one source of income? Two

Well let me tell you that for some people this may be difficult to do. Creating a second source of income can be challenging, but not impossible. Let me tell you that they are many ways for you to start generating income. In this post I will share 2 different ideas that you can start investing your time and money to create that second source of income.

1.        Peer to peer lending

      There are websites like LendingClub and Prosper that allows you to become lenders (know that this investment is also not limited to risk).

 LendingClub

With LendingClub you buy fractions of loans called notes. These notes range from grades A to C, and each grade has it's terms where you can purchase the notes in increments of $25. Allowing investor to diversify their risk splitting an investment across borrowers. The return you would get is the average interest rates on your notes, minus your fees, which LendingClub charges 1% investor fee.

Each time the borrower makes a monthly payment on their principal and interest, you also get paid. The company has a mobile app, available for Apple and Android that you can download and manage your account from your phone. To start using LendingClub you need a lending minimum of $1,000, go check out the company’s investor education section before you start investing.


Prosper

Prosper is one of the first peer to peer lending site in the U.S and investors can fund notes for as little as $25. You choose the amount you can lend for each note, the higher the amount the higher the return. Loans range from AA to HR meaning "higher risk, higher return." Also, with Prosper they charge you an annual 1% investor fee. Prosper also has a mobile app, available for Apple and Android to manage your account from your phone.


 

2.       Crowdfunding

       If your thinking about investing in real estate, there's a perception that you need thousands and thousands of dollars to invest but let me tell you that's not the case. With companies like Fundrise and PeerStreet you can start investing with just 1,000 dollars. This company lets you invest in their real estate projects all over the United States. This is how it works:


     This website shows you every commercial project they are working on and you are able to decide which project you want to invest in. They have a project chart that tells you the rating of each investment, which can range from A1 to E1.


Fundrise

PeerStreet

      Allowing you to diversify your portfolio and not only invest in one property but invest in many others (Just like any other investments there are risks). Just like in real estate investments, this type of investment is meant to be a long-term. This means if you need that money 1 or 2 years down the road then this is not the type of investment you would want to get into. These types of investments are meant to be for at least 6 years. You can also download their app on your phone to keep track of your portfolio.

💥Always make sure before investing into any of these long-term investments, first read the investor education to make sure you understand the investment.!!!!

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Comments

  1. Interesting article, i found it very helpful and informative!

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