To set the scene, lets say you have a spare $20,000 and you want to invest it in some way where you get a quick return. There are many ways to invest such money and one of the most interesting one’s is investing it in a market you already know. The stock market is too slow and short cycle investments are a much better option, so lets explore a few ideas here now.
1) Maybe you have a good eye for used cars. Your first step would be to familiarize yourself with the local used car market and get interested in a few particular models. The simplest way to establish the accurate intrinsic value of a particular model is to do a comparison value assessment. This simply means you go on line or buy a tabloid with listings of that particular model and ascertain what would be a real price, for a clean neat vehicle at that price range. Once you have that comparison figure, it becomes a simple matter of assessing the vehicles on sale in your area where the asking price is much lower than it should be.
People sell for their own reasons, often price, or getting the best possible price is not on top of the priority list. This type of mis-pricing is typical and normal in any market. Finding a bargain and re-selling it for a profit is one way to get a return on $20,000
2) You could buy and sub divide a cheap but large block of land. Typically, this type of transaction is quite lucrative because, if you successfully split the land, you now have 2 blocks worth $30,000 for an outlay of $20,000 that is a 50% mark up. Also, this type of transaction can be purchased with finance, so you could potentially buy 10 such blocks with a small deposit on each. Many people have made a lot of money doing this and getting skilled at researching your target land and ascertaining whether it can be split is a valuable skill to have.
3) You could import a container load of widgets from China and wholesale the products in your town. You can get anything from Chinese manufacturers. One example might be electric “Vespa” style scooters. At last look, they were selling them for around $400 usd per unit, so you could sell these at a healthy mark up and still be cheap enough for enthusiastic buying of your import. There is a few important things to learn about importing, but once you understand it, you are set to profit.