How to Generate Capital for Unmissable Investment Opportunities
Many times, you can pass on an investment opportunity without a second thought. Every once in a while, however, an investment excites you so thoroughly that you can’t say no. When this happens, you might have to come up with capital in a hurry. Following are a few strategies you can use to fund your next investment fast.
Pool Your Money
If you lack the capital necessary to fund the investment, consider asking someone else to put cash in the pot. An angel investor, a trusted family member, or a group of business owners in your community could add money. You’ll split the dividends based on the amount of money you each put in.
If you take this approach, create a written agreement so that everyone understands the terms of your arrangement. Give everyone a copy of the contract. If you alter the agreement later, put the changes in writing, as well.
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Apply For an Unsecured Personal Loan
An unsecured personal loan offers quick access to cash. You could visit your local bank or credit union and see if they offer this product. Otherwise, shop for personal loan options at lendingtree.com. If you prefer to visit an online lender directly, Sofi is a great option if your credit is excellent. If you have less than perfect credit, try Avant.
The process should be relatively straightforward. After you fill out an online application at one of these online lenders, you’ll know whether you are approved or declined within a few hours. If your approved, funds are usually deposited within 24 hours. This might offer the fastest approach to raising investment capital, especially if you don’t have a network of wealthy friends and colleagues to tap.
Look for loans that don’t charge pre-payment or loan origination fees. You’ll also want to work with a loan company that reports your payments to the credit bureaus. That way, your credit score gets a boost as you pay off the loan.
Consider Selling Some of Your Assets
If you have expensive artwork stored in your closet or a high-end car collecting dust in your garage, consider selling that property to generate capital for the investment opportunity. You might also sell other investments, such as stocks, bonds, and mutual funds.
When deciding whether to sell property and investments, run the numbers to learn how much profit you stand to make on each transaction. If your current investments outperform the new opportunity, think twice about selling.
If you have old electronics, such as smartphones, or unused gift cards, you can also turn those into cash. Antique furniture, power tools, appliances, and motorcycles also have excellent resale value.
Launch a Crowdsourcing Campaign
Musician and performance artist Amanda Palmer famously raised nearly $1.2 million to fund her art. While you might not meet that level of success, a growing number of people are raising money for important projects and investments via crowdsourcing. Websites like Kickstarter and GoFundMe allow you to ask your community to invest in you or your cause.
Crowdsourcing campaigns take significant work and effort, and sometimes they don’t get fully funded. If you need a more predictable way to raise capital for a unmissable investment opportunity, crowdfunding might not meet your needs.
When you can’t pass up an investment, there are ways to raise money fast. Try one of these suggestions to generate the cash you need.