It's not really relevant as to sort of investing you are
participating in, it's almost always a wise idea to have multiple
streams of income in order to maximize your profits while spreading your
risks. Even within the confines of real estate investing there are
different types of investing that can help you spread your risks when
markets meet turbulent times and this is a very good safety net for
those who do not want to feel as though they are gambling away their
investments on a real estate market that is fickle on its best days.
You really have two courses of action when it comes to bringing in
multiple streams of income when putting together your financial
portfolio. The first is to spread your real estate wealth and
investments across several different types of real estate investments.
There are a few types that come immediately to mind. First there are
rental properties. You have two options even with these. You can either
choose to rent properties outright to families, students, singles, and
the elderly in your town or you can offer a lease or rent to own
situation for those who have struggled in the past but still have the
dream of home ownership.
Other options for bringing in many streams of income through real estate
is to have a few rental properties and join those with a few flips in
the works, perhaps a commercial property or two, and a pre-construction
deal or vacation condo in the pipelines. One thing is certain you should
always be on the lookout for your next real estate investment if you
really want to make good money in this business while having a little
added security. Rentals are passive income for the most part, especially
if you have a solid property manager taking care of the details and the
other investments are often icing on the cake.
If you want a truly diverse portfolio however, it is a good plan to add
in a few investments that aren't related to real estate investing. While
I firmly believe that real estate investing is the way to go for most
people there is much money that can be made in other fields and it would
be pointless to discuss multiple streams of income without mentioning a
few that were unrelated to real estate investing. Retirement plans are a
great option and you can now invest in a retirement plan of your own
even if you are self-employed. It is definitely worth considering as yet
another stream of income, even if it is income that you will need to
wait a while to receive. Franchise businesses are often great money
makers for those who need more immediate results from their investments
efforts, and stocks and bonds are also great long term investment
strategies.
The fact is that there are many things you can do to produce even more
streams of income to add to your real estate investments. From making
money online through affiliate marketing, blogs, and direct sales you
can also tackle brick and mortar businesses, though these tend to be
just as time consuming as real estate. The point is that you want to
bring in money from different avenues and real estate investing is one
of many different routes to explore when deciding on your investment
future and establishing those multiple streams of income.
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