Alternative Investments: Mainvest
May 14th, 2023
Hey everybody,
This week I continue with the weekly articles on alternative investments. So far the Wolf has been incredibly profitable and has won a lot! What to do when you take some money out of the trading account? That’s what we try to cover in this weekly segment.
Reminder to check out our discord (https://discord.gg/xWskFr8E) to join an active community wanting to learn more about how to make money.
The third alternative way of investing is through Mainvest!
Mainvest is a passive investment company built around funding small American businesses as a form of debt investing. In exchange, business owners make regular repayments back to lenders, plus interest, until the loans are paid in full. They usually aim for high ROI (return on investment) rates of 10-25% on each loan.
Mainvest has a host of small businesses available on its platform, including cafes, breweries, food trucks, wineries, and restaurants. The only restriction is that there is a $100 loan minimum, meaning that you need at least $100 to utilize Mainvest. One of the most beautiful things about Mainvest is the lack of fees on the lender’s (your) end because it is covered by the businesses using Mainvest. The simplest way explained is that Mainvest supplies your capital to the business and they proceed to pay you back over time. The largest risk of Mainvest is whether or not the business defaults. It cannot pay back the loan, but because of the low amount of capital required for entry into an investment diversification is incredibly easy.
Mainvest pays back investors each ad every quarter that a loan is “out”. One precaution that Mainvest does in order to protect the investor is the various check process that businesses must go through to qualify for capital from Mainvest. These checks include anti-fraud checks, responsibility checks, bad actor checks, yellow flag checks, and these businesses are always under continuous review to ensure investors’ capital won’t be wasted.
Here is a screenshot from Mainvest’s page and just look at some of the breweries that are available to fund. The same goes for restaurants, bakeries, and even specialty businesses like hotels, handmade accessories, and even honey.
The way in which ROI is calculated is by the business’s gross revenue and the percentage of income they share each quarter. Investors receive a more significant percentage of the business’s revenue by investing more.
Assurance for the investor is key for Mainvest as they even make businesses raise $10,000 themselves from 10 people they know before they can be considered one of Mainvest’s vetted businesses.
At the end of the day, I believe Mainvest is an amazing resource that
can be used not only to create passive income but as a way to help out genuinely good businesses! Also if you are a business it is a great way to raise capital!
*This is not a sponsored post, we want to give you guys the best resources possible*
Things to Know About Mainvest:
Investors are able to reside anywhere but must have a U.S. checking account because of their bank partner. There are ways around this (Mainvest Support)!
This is considered a crowdfunding company
Mainvest offers businesses different types of securities they can offer to investors such as debt securities which are like loans whilst they could also offer equity securities which deal with ownership.
Be sure that the money you put into Mainvest is for investing purposes only, some of these businesses could fail as they are smaller with limited resources.