Why 9% High-Yield Returns Are a Game Changer for Your Portfolio
Key Takeaways
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Connect Invest’s Short Notes offer high-yield fixed-income returns of up to 9% through collateral-backed real estate loans with terms of 6, 12, or 24 months.
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Short Notes provide predictable monthly interest payments, portfolio diversification, and minimized risk through first-position loans backed by real estate assets.
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With a $500 minimum investment, no fees, and strong liquidity, Short Notes are an accessible option for diversifying portfolios and achieving financial goals faster.
Every investor wants to make high-yield investments, but how do you find ones that will give those returns while being relatively low-risk? We will introduce you to an investment that will offer high-yield returns of 9% and be a game changer for your investment strategy.
Connect Invest's Short Notes fund a diverse commercial and residential real estate project portfolio in 40 cities across 14 states. The 6, 12, and 24-month terms, with fixed end dates, offer yields of 7.5% to 9%.
While other fixed-rate investments also offer predictable income, their returns are lower than those offered by Short Notes. For example, the rate of return for a CD (Certificate of Deposit) in December 2024 ranges from 4% to 4.7% APY.
Investors who invest in U.S. savings bonds can expect even lower returns. I bonds issued from November 2024 to April 2025 have a return of 3.11%, and that rate can change every six months. EE bonds purchased during this period give a return of 2.6%.
While fixed-income investments like CDs and bonds provide peace of mind in the form of low-risk and predictable returns, Short Notes are great assets to invest in for the same reasons.
Investing for High Yield Returns
Diversification within a portfolio is a foundational principle of investing. By diversifying portfolios and investing in different asset classes, investors ensure buffers of protection during market downturns. A diversified portfolio mitigates risk and volatility and eases the stress of a market's sometimes wild ups and downs. Investors with these kinds of portfolios rest in the knowledge that they won't be experiencing a total loss.
The rule of thumb in investing has always been that high-risk investments give the highest returns. But is that a hard and fast rule? Not exactly.
Though Short Notes are generally considered riskier investments compared to other fixed-rate assets like bonds and CDs, Connect Invest takes minimizing that risk seriously. In addition to working exclusively with well-established borrowers who have been thoroughly vetted, we only utilize investor funds for collateral-backed real estate loans. In the unlikely event of a default, collecting the funds back is an uncomplicated process.
Successful investors have learned how to safely invest money and understand their risk tolerance in light of their time horizon. Younger investors have more leeway regarding risk and should be encouraged to include some reasonable risk in their strategy. Being too conservative out of the gate could lead to growth that doesn't keep pace with inflation, and when it comes to retiring, there may not be enough money to live comfortably on.
Compounding high-yield investments over time is an excellent way to grow wealth. It occurs when an investor takes their earnings from the interest and/or capital amount and reinvests them to generate additional earnings over time. In essence, interest is paid on previous interest earned.
Inflation and Wealth Preservation
Fixed-income investments help protect a portfolio during economic downturns. A fluctuating market can cause stock values to decline dramatically, but fixed-rate investments, with their predictable returns, help offset these losses.
With careful planning, investors can build a well-balanced, diversified portfolio between equities and fixed income. This kind of portfolio tends to outpace inflation and help investors grow the wealth they need to realize their goals.
How 9% Returns Can Help You Reach Your Financial Goals
Higher yield returns, particularly when compounded, help investors achieve their financial goals by generating more significant income amounts over time. This is particularly helpful for investors looking at retirement in the not-so-distant future.
In addition to retirement, investors may have goals such as buying a house or funding education for their children, and higher yield returns, like the Short Notes that give a 9% return, make reaching those goals in a shorter period a reality.
It's also a good idea to include other assets like high-yield savings accounts, bonds, and CDs in a portfolio, but bear in mind that their returns of 4 to 5% can't compete with the 9% returns on Connect Invest's Short Notes.
Why Short Notes Are a Smart Fixed Income, High Yield Investment
When talk turns to high-yield investments, it tends to be centered on those that are considered high-risk. However, Short Notes is a promising alternative investment with higher-than-average returns. Though they are considered a risky investment compared to government-insured bonds or FDIC-protected high-yield savings accounts, Connect Invest has taken steps to minimize risk for investors. These include:
- Collateral-backed: Loans funded by Short Notes are exclusively collateral-backed, first-position loans. If the borrower defaults, Connect Invest is in a position to sell the property and return most, if not all, of investor money.
- Monthly fixed returns: Investors earn predictable, fixed-rate monthly interest payments. They can compound earnings by reinvesting this income and grow greater wealth.
- Portfolio diversification: Real estate is a solid way to diversify your portfolio. Short Notes investors reap the benefits of investing in real estate without shouldering the burden of direct ownership.
Parting Thoughts
A high-yield return of 9% can be a portfolio game-changer for investors. Wealth can grow faster than with standard fixed-income investments like bonds and CDs, which means that goals such as retirement, home purchases, or education funding can be realized.
With their minimum investments of $500, no fees, and good liquidity, Connect Invest's Shorts Notes are an easy and accessible way for every investor to diversify their portfolio with real estate.
We invite you to sign up for our free webinar to learn more about Short Notes and how we've made real estate investing easy and profitable for beginner and experienced investors alike. Begin diversifying your portfolio today.