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5 tips for getting quick returns on your investments

Most investors want some type of a quick return on your investment.However, you will have several issues if you focus all of your efforts on quick returns.Usually, the quicker the return, the higher the risk you will be taking.However, you can find several strategies to maximize your returns while minimizing your risks.

The first thing you want to determine is what is quick.Most investment strategies have a long time period of waiting in order to make your money.So if by quick, you mean a year or two, then you have several strategies you can choose from.If your time period is six months or less then your investments are more limited.So first determine your investing time frame.

Next determine what you are looking for in terms of return on investment.If you are trying to get 50% return on your investment in six months, you will need some very specific strategies.However, if you have smaller expectations then you may be able to be a little more flexible in your choices of investing.

Tip 1.Real Estate
Real Estate will give you an opportunity to purchase and make quick returns on your investment.Often you can purchase wholesale and sell retail.Additionally, this gives you the opportunity to leverage the bank's money in your investment.

Tip 2.Be the bank
Many investors especially in the real estate market need money in order to invest to do fix and flips and other strategies.By becoming the bank, you can loan money without having to qualify the people the same way a bank does.You can minimize your risk by using the real estate as collateral.This can provide a quick payout because often these loans have an up front fee of several points and then charge fairly steep interest rates.Additionally, many of these loans are structured for only six months or less.

Tip 3.Initial Public Offerings (IPO)
Initial public offerings are a good way to make a quick return on your investment.However, the risks can be great here, because these can often be untried companies that are trying to raise capital in order to become a viable company.Also, you will need to create a relationship with a broker in order to get access to the company's IPO.

Tip 4.Joint Ventures
Many different investments need cash to get started.You don't have to know the entire business in order to get involved if you are the partner bringing cash to the table.You can often make a very quick and lucrative return if you can find the right opportunity.

Tip 5.Know the industry
You should invest in the industry you know which includes the stock market and bonds.If you are in the computer industry, then you often understand when the next boom or bust will be coming.You can then structure your investments in order to take advantage of these swings.Often people trust their investment advisor who is just going off of analyst's numbers.If you know the industry yourself, you should know when the times are to get in or out.

If you examine these five tips, you will notice that all of them except Real Estate require that you have an initial lump sum of money to invest.Usually you will need to build your investment over time and small monthly payments.As you grow your investment portfolio more investment options will become available.

Also, remember with quicker and higher returns come higher risks.Make sure you do your research in order to minimize your risks.

In summary, quick returns often mean higher risks.Define your investment strategy and how much risk you are willing to take.Do your research on your choice of investments and minimize your exposure as much as possible.No investment is risk free, but you can minimize your risk through proper diligence.

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