Most bank CD’s are paying less than 1% interest on a 1 year CD. For those willing to look at other guaranteed investments, there are currently offers for up to 6% fixed interest with only a 1 year commitment.
While not a bank with FDIC backing, First position commercial mortgage notes are a safe and guaranteed way to generate substantial interest rates with short terms. Non accredited investors can obtain a 6% rate and are not subject to lose their money if the mortgage defaults. Interest payments are made to the investor over the course of 12 months with their initial investment being returned at the end of the term. The investment is protected by the value of the property (no greater than 65% mortgage to loan ratio) and the company offering it. In the event of a mortgage default, the investor will not see an interruption in payments and will have no responsibility or involvement with foreclosure/short sale proceedings.
Click the link to learn more about First Position Commercial Mortgage Notes