9 Original Short Term Investment Ideas
Buy some stocks, hold them forever and you may eventually retire some day!
Cool, but sometimes you want to make quicker profits. Like in half lifetime instead of full. Or in 10 years. Or even in one. Or even less. Such opportunities do exist. Of course they are risky but they do exist.
Most short term investments fall into the category of "flipping". You buy something and flip it out for profit. This usually requires some work. These investments are rarely fully passive. But if you could make 20% - 100% return on your investment in few months, I would say give me that work!
1. House Flipping
OK, let's review some ideas. I'll not discuss the usual crap about bank deposits and short-term mutual funds. Let's only focus on more original stuff:
If you have big bucks on hand and are not afraid to do some work, house flipping could be for you. The days when you could buy a house and just sell it at doubled price are long gone. Everyone posts their ads on the internet and everyone knows how to search there. So if you plan to make profits by house flipping you must add value to the house you bought. Here are some ideas how to add value:
- Rennovate the house. This is the most obvious way. You can add more value to a house that is in bad condition rather than to a well looking one. Rennovaion may include painting, fixing broken things, replacing parts, adding furniture and so on. You can't do everything yourself so make sure you have cash to hire people and buy materials.
- Extend it. This may mean to build a new floor or new room, or just to add an outdoor shed or other pony construction.
- Make it more self-sustainable and energy-efficient. You can get better price for a house with solar panels, own water supply and so on.
- Improve the garden. A good looking garden or a garden with fruit trees can help you get a better price. And forming a garden isn't as expensive as the other methods of adding value. Although it takes more time.
Before buying a house for flipping explore the market in the region and make sure there is housing demand. In the recent years the number of regions where demand is much lower than supply is growing.
2. Website flipping
I've told this earlier too, it's one of my favortie short term investment strategies. Websites can be flipped in a couple of months and you don't need large budget - sometimes you can find good sites for around $1,000 and flip them for several thousands six month later. Once again, this is not a work-free opportunity. To flip a site with profit you'll need to improve two things: traffic and revenue. How? Here are some ways:
- Improve site's SEO. This is no longer easy at all. Don't think you'll just do it on any site. The best chance to improve the site search engine optimization (and therefore traffic) is to find a site that's not optimized well but still has good content.
- Add more quality content. The content itself is not enough to build traffic but makes it easier. Obviously you need to know the matter to be able to add more content.
- Improve social network presense. A site with few thousand Facebook fans can be sold at better price than a site with no fans at all. And it's not that hard to get FB fans with good and interesting page and few bucks for advertising. Don't forget also Twitter, Google Plus, Pinterest and so on.
- Improve the site's revenue from the current traffic. If the site is selling own or affiliate product you can achieve better revenue by improving the conversion rate - by better design, better copy and so on. If the site relies on ad revenue, you can try to improve the ad placement and colors to achieve better click-through rates.
Website flipping is for you only if you are already into the website business. It's highly technical matter and if you have no idea what you are doing you can lose a lot. We sometimes give specific website buying ideas (like this one) on our Opportinity Reviews section.
3. Antuques flipping
Some people are able to make good profits by buying and selling various antiques. They usually buy them at small local auctions and sell them to interested customers. Flipping antiques usually requires physical travel and knowing the matter very well. Don't do it if you can't estimate antiques value and can't recognize imitations. Trading antiques without knowing the business is a great way to lose a lot of money.
4. Coins and other collectibles
Coins, stamps, and other collectibles can be flipped quickly with good profits as long as you know what you are going (again). Similar to antiques flipping, here the risk to buy something of no value is big. Your best chance (if you can recognize the real gems) is to buy locally and then sell online on various auction sites.
Unlike with house flipping and website flipping (and even sometimes antiques), there is no way to add value to coins and most other collectibles. They should be kept in the way they are and just sold, hopefully for profit.
5. Find local cool stuff and sell it on ebay
Similar to the two options above, this is about finding stuff locally that might get better price sold online, for example on Ebay. Here I am not talking antiques and collectibles, but more about locally produced (often hand-made) stuff. For example honey, tools made by blacksmith or local carpenters, drawings and so on.
Flipping such kind of stuff can sometimes happen in less than a month and often the profit can be more than 100%. It's also very risky of course because you may end up with lots of unneeded stuff that you can't sell because it's no good.
6. Investing in gold and other precious metals
Investing gold and metals is easy. Making profits is the hard part :) It's very close to trading so you may want to read a guide like this one.
I'm staying away of this. I want to invest only in things which I know well and where I can add value.
7. Investing in digital currencies
Investing in digital currencies is similar to metal trading but there is much bigger potential in it. The currencies are still young and some of them have tremendous room for growth.
I recommend you to check our guide on this matter.
8. Peer to peer lending
Peer to peer lending can be quite profitable and with quick turnaround. You can earn 3-4 times the bank rates and get your loan cleared in 6-12 months or so. People do it on sites like Prosper.com and many others so you can find borrowers and lenders there. Again you may have better chances by local peer to peer lending as long as it's legal in your area.
This investment method is rather risky because there is no guarantee your loan will be returned and there is little you can do about it.
9. Trading Commodities
Different commodities are hot each year. Last year it was rice and corn, other year it will be oil and iron. You should be able to predict what is going to be hot the next year and invest in it. Then sell it at the end and turn out good profit. Ideally of course.
You don't have to physically buy and store stuff. There are many virtual platforms for buying and selling commodities.
If you want to learn more about commodity trading, check out this guide.
Published at Jul, 31 '13 , Read 4331 times.
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