Patt, here is an idea that is zero effort, secure, and profitable. Find a commercial realtor. Partner with a property developer. Sell the lot with owner financing. Example. $50,000 at 10% x ten year simple loan = $660.75 per month. When the last 120th payment is made you $79,290 total on a 50k sale. Each year you would realize $7,929 of income. If your age is less than 50 years old, you can put $5,500 of that money in a traditional IRA and not pay taxes on it. Or better yet, put it in a Roth IRA and use the difference to pay the tax up front. (the beauty of the Roth is that your withdrawals are then tax free) If you then took the IRA money and bought a dividend stock (like McDonald's stock) and reinvested the dividends, you'd be making another 5 K a year after another 10 years in dividend income. So you basically make 10% on your money per year almost 100% tax free, then have a lifetime of dividend income after that, and don't have to sweat a thing. If the developer defaults, your loan is in first position. If the complex is sold, you get paid first.
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