Investing at the smaller level can really pay off if you are willing to be hands on. Look at it this way, a typical institutional investment can make you 15% to 30% per year which is very good if you have a million dollars, but what if you have little seed capital. That type of a return on a few thousand dollars is not very usable money so we have to be slightly more aggressive as investors in the early years.
SOR or speed of returns refers to the length of time an investment yield is measured. Typically and historically it is an annual measure but a fast cycle investment is different. Fast cycle investors can look to make a couple of percent a day or even 10% or 15% per week. This is a very aggressive strategy and the returns are huge.
To find fast cycle investments you need look no further than your own mind set. Anything can be a fast cycle investment as long as their is a ready market and the transaction can happen quickly.
Consider this very common example. A guy is selling a $3500 dollar car for $3200 You come along and lets say he already muddled through 2 potential buyers who decided to walk away and he hasn’t heard back from them. This time he is very receptive to sell you the car. You look it over and see it is in fairly good condition but you offer $2200
He doesn’t accept but you chat with him pleasantly and keep the conversation going and he begins to like you so you counter with $2500 Next thing you know you are driving your new car home that you paid $2500 for and putting it up for sale for $3500 the actual price it should sell for. Some nice buyers come along and pay you what you asked without a haggle. You just made a fast cycle investment and a return of roughly 30%