Investing is more than stocks, and mutual funds, and there are so many more options in which to choose. Alternative investments make it simple for an individual to cash in on these opportunities. Some of them may lead to great sources of passive income to keep the money rolling in. If you’re ready to expand, diversifying with alternative investments might be what you’re looking for.
Real Estate and Rentals
Included in the best alternative investments, real estate can be a good alternative investment to generate income. To get started, save up at least enough for a down payment and the bank will finance the rest. The money you make on rent payments should pay the mortgage, taxes, and repairs. You stand to make a return on your investment over time and the property value can increase,
Peer-to-Peer (P2P) lending bypasses the bank and connects borrowers with investors. As an investor, you have control over the risk of lending money to the applicant. Managing all that would be a burden so use an online platform like Lending Club to provide the funds. They lay out the terms, collect interest payments and you can get a good return on your cash.
The next best alternative investment is Crowdfunded Art. Yes, if you play your cards right, it can add up to huge prices. It is a platform that brings people together to get the best deals on paintings and fine art. The goal is to buy below market value so investors can make the most money. Masterworks sell shares in paintings that makes it possible for you to have part ownership in some valuable artwork.
Do you have a love for music? Making money from music royalties is a legit top alternative investment. Royalty Exchange makes it possible for you to buy and sell royalties from other artists You will have part ownership of the intellectual property rights of the music. These types of transactions open up the opportunity to a broader audience to earn passive income.
Cryptocurrency is one of the top best alternative investments. Surely, you have heard of Bitcoin, and it has quickly gained traction. The value of Bitcoin hit a record high of more than $19,000 in 2017. Several varieties of cryptocurrency have become popular, Litecoin, Ethereum, and Bitcoin Cash. Each of them allows you to make money through investing in cash and gaining huge returns.
Exchange-traded funds (ETFs) are one of the top best alternative investments when you’re talking about commodities. ETFs took an interest in commodities that makes it easy to buy and sell through a regular exchange. Possible commodities are gold, silver, oil, corn, natural gas, and solar energy. To buy, you place an ETF order just like you would buy gold directly. ETF can help to reduce the risk of inflation and it can balance your overall investing plan. It doesn’t change in value the same way as stocks and is not accessible to individual investors.