Even for those who might be new to investing, it is clear that there is a myriad of ways for you to invest your money. Some of those ways are considered to be more traditional, while others… not so much.
If you're not a fan (or simply not looking for) more thoughts about investing in stocks, bonds, and mutual funds, then maybe investing in something more non-traditional is right up your alley. There are a lot of options out there if you start looking, but not all of them are so obvious.
Let’s take a closer look at some of them now.
If you happen to have a bit of capital that you want to invest, you might consider investing in a franchise. There are quite a few of them out there that have a high potential for growth – such as UPS store franchise opportunities. If this is something that interests you, take a look around in your area to see which franchises happen to be gaining traction.
If you are thinking about a franchise, but don’t have the necessary capital at the moment, you might also take a look at kiosks. Kiosks can usually be had for much less in a mall, and while they might take a bit more time at the outset, with good managers, it can turn out to be quite a good, passive type of investment.
Virtual currencies include things like Bitcoin and Ethereum, among others. These types of investments are typically considered to be more of a high risk than some other options, but if they pay off for you, it can be well worth the risk. The best part about investing in virtual currencies is that they tend to require smaller amounts of up front capital when compared to other types of investments. You might be able to gets your hands on a Bitcoin for less than $1,000 if you time it right. There is a high risk, but the amount of time you need to commit to it is relatively low, unless you want to mine for them.
Recently, there has been a rash of P2P lending institutions popping up all over the place. This non-traditional form of investing enables both borrowers and their lenders to completely bypass banks and other financial institutions as intermediaries of the loans. This is a great way to invest if you are looking for a debt type investment vehicle that pays a predictable interest rate. The returns that you can get are quite a bit better than what you can get from a bank or even from bonds. You have the option for the loans that you take part in, but you risk the borrower defaulting on the loan.
Our favorite peer to peer lender is Lending Club. Check it out here.
There are quite a few great properties that are available in a vast array of areas. If you want to get into this type of investing, it would behoove you to find a great real estate agent who will have a good understanding of your goals and motives. Once you have that in place, you might want to start looking for properties that don’t require much capital to buy them but that have a massive potential for generating that rent every month. In places, you will be required to put as little as 10% of the purchase price down for a property that you can rent out to other people.
If you want to cut out the investment in time that needs to be spent on your rental properties, you can hire a property manager who will have the responsibility of property maintenance and finding qualified renters.
A third option is to invest in real estate and rental properties online. Check out our guide on how you can become a real estate investor with as little as $5,000.
If you are looking for something that is tangible for your investments, you might consider collectibles. This is a broad category that can include anything from antiques and precious metals to coins and figurines, or anything else that is tangible and likely to experience a rise in value through the years. The key thing to remember with collectibles is the rarity of them. The rarer something is, the higher the value of it.
Collectibles as an investment is a quite diverse category, and because of this, it would be to your benefit to thoroughly investigate any of them that you might be considering as an investment. You also need to be sure that any money that you invest is money that you can stand to lose because collectible prices can fluctuate substantially in a relatively small amount of time. That being said, certain of them – such as coins and precious metals – can rise in price right when the prices of conventional assets happen to be falling.
Do you have any “non-traditional” investments?