FIVE WAYS TO MAKE WEALTH APART FROM STOCK MARKET

Many investors (you may be one of them) aren't aware of the alternative investment options available to them.

Instead of putting all your hard-earned money in the same basket, consider these 5 alternative strategies:

1. Invest in a Rental Property

Investing in rental property means buying a property that can generate an income in the form of rent. There is no doubt that investing in a rental property for beginners can be a great way to generate positive cash flow REITevery month. Rental investments can often be a great way to earn returns, plus you can benefit from any rise in property value. Make a Goal. Set a deadline to purchase your first rental. Stay committed. Let friends and family know your goal. Write it down and set short deadlines to be looking at property and making decisions, rather than just ‘buy my first or next rental by X date’. Set manageable goals to get you to closing. Start Shopping.

2. Invest in Alternative Assets

An alternative asset is an investment that does not conform to the traditional asset classes of stock, bond, or certificate. An alternative asset is usually used to describe more exotic investment options like works of art or bottles of fine wine, but the term applies to relatively common investments like residential rental real estate, as well. Due to the unconventional nature and questionable liquidity of some alternative assets, valuing an investor’s holdings can be difficult.

You can now invest online in asset classes such as real estate finance, litigation finance, marine finance, art finance, commercial finance, and more.

3. Invest in a REIT

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     A REIT is a company that owns and typically operates income-producing real estate or related assets. These may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans. Unlike other real estate companies, a REIT does not develop real estate properties to resell them.

What do REITs invest in?

·        Competitive Long-Term Performance: REITs have provided long-term total returns similar to those of other stocks.

·        Substantial, Stable Dividend Yields: REITs’ dividend yields historically have produced a steady stream of income through a variety of market conditions.

·        Liquidity: Shares of publicly listed REITs are readily traded on the major stock exchanges.

·        Transparency: Independent directors, analysts and auditors, as well as the business and financial media monitor listed REITs’ performances and outlook.

·        Portfolio Diversification: REITs offer access to the real estate market typically with low correlation with other stocks and bonds.

4. Invest in a Franchise

A franchise is a license you buy that allows you to run a business under the name of an already-established business, such as a McDonalds, Dairy Queen, or even a Holiday Inn. Different from owning stocks, bonds, real estate or other passive investments, a franchise is an investment where you have a great influence on how that investment performs. It is an active investment and, with the exception of some multi-unit developments, franchisors generally will require you to commit your full time to manage and operate your franchise.

Generally, individuals become franchises for three basic reasons:

• They have decided they would rather work for themselves than for someone else;
• They are looking to replace or increase their income; and,
• They are looking to earn a better return on their investment than they could elsewhere.

5. Peer-To-Peer Lending

Also known as social or crowdlending, it connects borrowers looking for alternative forms of capital with lenders (such as you). Beyond being beneficial to those looking for financing, it can also be a good way to get returns as an investor. The peer-to-peer lending (P2P) marketplace, also known as the social lending marketplace, works through a simple online platform, which connects borrowers and lenders and thereby cuts out traditional banking protocols. P2P lending platforms do not lend their own funds but act as facilitators to both the borrower and the lender.

The P2P lending system has made the practice of borrowing and loaning money easy. With just a click of the mouse, individuals can easily find loans online without going to banks in person or waiting for approvals. Low-interest rates, simplified applications, and accelerated decisions have made the peer-to-peer lending model a huge success in the digitized world.