Suggestions for best way to make 4.3% per month?

Question

I have a decent sized amount to invest. For what I'm trying to achieve I need to make 4.3% per month, as safely as possible, with monthly distributions of the 4.3%. I already own rental properties separate to this but I want to know if there are better ways to, as much as possible, guarantee the 4.3% with almost no risk. I know that nothing comes risk-free, there are no guarantees, etc, etc. But I'm thinking that to make this relatively small amount of interest there may be ways I haven't thought of or never knew about.

Alex D. · Answer

Thanks @Aaron K. and @Matt Devincenzo Consistency would be required. I'd need the monthly amount, possibly for a number of years.

Matt Devincenzo · Answer

If that is your target I would go with the most passive option possible and lend that to a proven performer at 5% IO paid monthly....I see no reason why you wouldn't have 20 offers to use those funds, probably at a higher rate than that.

So do you just want consistency i.e. if you lent that privately at 7% but had it pay off every year or so is that "bad" because you have to redeploy it? It may be a HML might borrow it to lend at a higher rate, making him responsible for the active redeployment would resolve that concern.

Aaron K. · Answer

@Alex D. that makes more sense and isn't too tough to achieve, I think the key here is volume, the more properties you have the lower the chance for one outlier scenario to throw you off track.  For example if you buy one $100k property cash and you need a $15k roof, that is going to be a problem for your return.  But if you buy 5 with 20% down each and you get hit with that same roof issue, it is likely some of the others won't need as much capex as you budgeted for that year so your overall return will be more stable.

Alex D. · Answer

@Aaron K. I described it incorrectly. Sorry. I need 4.3% per year, but divided monthly, with monthly payments. Hope that makes more sense.

Alex Williams · Answer

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Aaron K. · Answer

4.3% per month is not a small amount of interest that is 51% per year which is insanely high, there is no consistent way to do this that is low risk.