$ 20,000 is a lot of money, but $ 40,000 would be better, so let’s explore what you could invest that money in and consider possible scenarios that can double it in a month or less. This type of money is a pretty decent amount of capital, however, it is not enough to buy a property without taking out a loan. Doubling your money at any level is a great feat, but as you will see, it is not impossible.
First, a word about risk. All investors look at the downside or risk profile of a potential investment before even thinking about investing, no matter what the promised returns are. Risk is an important consideration and we could do well to define the ideal risk-free investment so that we can better imagine what to look for.
First of all, when you give your money to someone else, that’s the underlying cause and the underlying problem of risk. You have to trust and you have to hope that your money will be returned to you with the promised interest. When you hand over your money in most situations, all you get is evidence that your money is with them. You don’t get any tangible collateral for that money.
Consider a house on the other hand. A home, or any tangible item that has an existing liquid market, is a great piece of collateral and you have direct control over that asset in exchange for the money you paid. This means that you can control the value to a certain extent and this is an important point.
To double $ 20,000 in less than a month, you might consider an investment in land. A paper rehab, unlike a normal rehab where you roll up your sleeves and paint a house, a paper rehab is one where you fill out some forms and immediately increase the value of the land. For example, you can buy a lot that is close to an industrial area and change the industrial area to residential. Whenever there is a clear shortage of industrial land in the area, the value of that land has just increased enormously. Or you could put the paperwork to divide the block to subdivide. This would mean that you have 2 lots that are almost worth the same as the original. This type of value manipulation is crucial to your risk profile and the final level of profitability.