Jan
20

Compounding Returns Lead to an Earlier Retirement

If you start early enough, compounding returns can lead to a significantly earlier retirement. How It Works For example, assume that you put $5,000 aside in a note that’s 12 months gaining a 12% return. At the end of that 12 month period, you will make $600. Instead of paying out that dividend, now invests $5,600 aside in another note yielding 12%. Now you’ve made $672 in addition to the $600 you made just a year ago. Savings: $5,000 Interest Rate: 12.00% Year 1 Year 5= Year 10 Year 15 Year 20 Capital Gains(Yr 20) COMPOUNDED $ 5,600.00 $ 8,811.71 $ 15,529.24 $ 27,367.83 $ 48,231.47 $43,231.47 PAID OUT DIVIDENDS $5,600.00 $5,600.00 $5,600.00 $5,600.00 $5,600.00 $12,000.00 Benefits of Compounded Interest It’s powerful seeing the difference of compounded interest versus re-investing your initial investment. Moreover, the two options illustrated above are small samples of what you can accomplish. Here are a […]

Jan
06

Economies of Scale

Since the birth of the amendment to the JOBs Act on September 23, 2013, concern for investor security continues to be a trending topic in the media. As the real estate crowdfunding industry’s top influencers highlight the importance of investor security, we are slowly beginning to see an emergence of authentic platforms. The Inevitable Barriers to Entry For early adapters, platforms with previously established backgrounds in real estate investing are becoming industry leaders. More specifically, companies’ success is fueled with track records backed by operational sustainability and scalability. On the other hand, platforms without established business models are falling to skepticism and remain under scrutiny. Adaptability in an Ever-Changing Market There has shown to be a necessary balance for platforms who are chasing markets and investing in what they know best. For those successful platforms, chasing markets require manpower. While those who invest in what they know could be slow to […]