8 Ideas to Get Started Investing your Money
Oct 08, 2018 11:04AM
● By Alyssa McGinnis
By Tracie Storo
Looking to invest your money? Whether you have a lot or a little money and/or time to invest, there are many ways to get you going. No matter where you start, there is always room to grow into something bigger.
Buying a Rental Property
If you have the cash up front, you can purchase a single family home or a multi-family apartment. Start small and build up to something bigger to bring in more cash flow. Remember that you want to be able to rent for higher than your mortgage so pay attention to the financials of the property you are wanting to invest in. The other thing to consider with rental property, you will be dealing with tenants. Make sure to do your background and financial checks when choosing the right ones.
Buying a House to Flip
When considering flipping a house, look at location, needs and price. Search for a deal, the less work and money you put into it, the better off. Make sure to think about the unknown problems that may occur and have a budget for these items. If you are handy and are able to do many of the repairs and upgrades yourself, this could be a great way to invest.
Rent a portion of your current home
Renting extra rooms in your house or buying a duplex/triplex is a great way of investing your money in a home but also getting your mortgage paid down faster. With a duplex or triplex, you can live in one unit and rent out the others. The other benefit of this rental situation, you have a close eye on your tenant and are fully aware of what is going on in your property.
Buy a Commercial Property
When renting out commercial property, leases may look different depending on your tenant and their business. Retail leases often require merchants to pay a flat fee plus a percentage of their profits based on their volume. This could help in determining what type of tenant you would lease to.
Storage units have become very popular recently, especially for “toys” during the off season. They also come in handy for those who are moving and need temporary storage. These are generally month to month rentals which can make pricing changes easy. They also are very low maintenance and require very little time for general operation.
Short Term Rental
Many people are looking to Airbnb or VRBO for vacation rather than a hotel. This is a great way to earn more income for rooms you are not using on a regular basis. If you invest in a property that is near a vacation hot spot, you can rent it out when you are not using it yourself. Depending on your location and property specifics, you could pay your mortgage with one week of rent. A down side to this type of rental is that you have more time invested as you are the innkeeper of the property and are having to all the services on a daily/weekly basis as opposed to yearly with a normal rental.
Laundromats and car washes are a great investment if you have the money but not a lot of time. These facilities are low maintenance and require little if any staffing. Keeping the business clean and making sure the equipment is running correctly are essential to continual business.
With today’s fast-paced world, people want what they want as soon as possible. Vending, pop, movie, ATM, etc. machines are popping up everywhere. Finding the right location to place one, could create a great revenue source. These machines have a very low start-up cost and you could multiply your inventory very quickly. The key to making these profitable is making sure they are filled with what the consumer is looking for.
There are many ways to get started in investing your money. Some take little money and little time to get started and others require more. However, the more money and time you put into your investment, the more you will get out of it. It depends on what you have to contribute to your investment that will generate the outcome you get from it.