15 INCOME PRODUCING ASSETS TO BUILD WEALTH

The Key To Building Wealth

The key to successfully building wealth is to have multiple income streams. Two thirds of wealth builders have atleast three different revenue streams, and many have atleast five or more income streams. Having mutliple revenue streams also provides a variable into the mix that may protect your wealth from lows in various markets or industries. Never put all your eggs in one basket! If you are serious about building wealth, and looking to the future instead of having luxury items right now, then you are on the right path. Put those fancy cars, expensive jewelry, luxury boats, and other items on hold, and start to invest that money into income producing asset to begin building more wealth today. Once you build that wealth, then you will have the extra money to start buying those luxury items again. It is a great feeling to build your retirement as you work years and years for an employer that rewards your hard work and company loyalty. But wouldn’t it be better to have multiple revenue streams or multiple income sources, to build up your retirement, and build up your wealth, so you can retire from the day to day job much sooner. You could semi retire, by giving up the fourty to sixty hour work week, and just spend some time building more wealth with your multiple revenue streams. This would let you enjoy your life more, and spend more time with friends and family.

Income Producing Assets

1. Savings Accounts or Money Market Savings Accounts 2. Certificate of Deposit (CDs) 3. Interest Paying Bonds 4. Dividend Paying Stocks 5. Peer to Peer Lending 6. Single Family Rental Houses 7. Multi Family Rental Properties and Apartments 8. Trailer Park Space Rentals 9. Boat Rentals 10. Short Term and Vacation Rentals 11. Recreational Vehicle RV and Trailer Rentals 12. Real Estate Investment Trusts (REITs) 13. Purchase a Business Franchises 14. Income Producing Business Asset 15. Income Producing Business Websites 16. NFT - Non-Fungible Tokens - Income Producing Assets 17. Buy or Sell a Business or Income Producing Business Asset

1. Savings Accounts or Money Market Savings Accounts

One of the safest, simplest, and most popular revenue streams is using a bank account to generate passive income, whether that’s in a regular savings account or a money market savings account. Though this is an option, it’s very low on my list because it is also one of the least profitable. Savings account interest rates are way too low.

2. Certificate of Deposit (CDs)

Most banks offer CD’s for you to invest your money in. They pay you interest or a set percent on your money, but your money is locked in for a certain time period before you can collect. The money is untouchable, unless your willing to pay a penalty for pulling it out early. The interest rates on CD’s are generally higher than a standard savings account. This is a safe investment, but is also not going to make you a bunch of money in the grand scheme of things with very low interest rates.

3. Interest Paying Bonds

Interest paying bonds are where you invest a certain amount of money into a bond, and the company will agree to pay you a certain percent back. Any entity can offer these bonds, whether it’s a large corporation, a small business, and government entities. An average amount of interest would range from one to four percent. Can be safe, depending on the company or entity issuing the bonds. Can also have some risk. It’s not typically a big money making investment either, but it can be.

4. Dividend Paying Stocks

This is the first income producing assets category in our list that has some real opportunity to build some real wealth. With the increase in potential for making big money, also adds some layer of risk. With risk comes wealth. With stocks, you can win some and you can lose some, and you really have to study the stock market, or hire a professional stock broker expert to help pick the winners and the losers to stay away from. Not all stocks pay dividends. The company stocks that would typically pay a dividend would be the larger and more established companies that are growing and making great profits. A typical dividend would be less than one percent to six percent or higher, depending on the company and their earnings.

5. Peer to Peer Lending

Peer to peer lending is where instead of a bank lending someone money, charging a lot of interest, you loan individuals money through an SEC regulated intermediary on their website exchange where they match loan needs with loan investors or financers. This carries a bit more risk, especially in tough financial times. If you get lucky, and nobody defaults on your loans, you can make a lot of money with this income producing asset.

6. Single Family Rental Houses

One of the most popular income producing assets is single family rental houses. The source of income here is both the rental income itself, and the increase in value that the house will make over a long period of time. People refer to this investment opportunity as their retirement plan. As long as you have good tenants that pay their bills, and good houses that you invest in that don’t have major issues requiring you to invest in to many things that break, you may have a house pretty much paid for over a thirty year period by a few good tenants. You set your monthly rental to cover the mortgage on the house, and any upkeep averaged over time, and emergency repairs, and you will have the tenants build your wealth for you. Then you can cash out when you are ready to retire, and sell the house or houses, and make hundreds of thousands to millions of dollars on each house, depending on your investment level or puchase price and the value it gains over time. There are a few risks, which make it important to carry the right insurance to protect you from emergencies, disasters, lawsuits, etc. Another risk would be if the house lost value over time instead of gaining value, then you would make less money when you sell it.

7. Multi Family Rental Properties and Apartments

If you want to really start to see the big bucks in the propertly rental business, investing in an apartment complex, a duplex, a triplex, a quad, or more, then you should look into the multi family rental properties. I recommend the units with five doors or more, or five family units. To find these units, you would want to engage a professional commercial real estate agent that specializes in Multi Family Properties. There is a smaller supply of the multi family style units, so it is good to get help in finding the perfect unit that fits your business goal for building the most wealth you can on your investment. Multi family rental properties are one of the best investments for income producing assets.

8. Trailer Park Space Rentals

With trailer park space rentals, you basically charge rent on the space for the renters to put their modular home or trailer on. Your initial investment will be quite high to get started, but buying a park that is already made is a good option to get your hands dirty. The site rentals can be upwards of a thousand dollars a month, which pays for the upkeep of the trailer park, the cost of the park loan, and a nice income overall if things go well. Some trailer parks also own the trailers, so that would increase the income potential because you are also renting them the trailer itself. Cap rates upward of 18 percent or more can be achieved with the right plan and business model.

9. Boat Rentals

Another good income producing asset is the boat rental market. Where you buy some of the most popular styles of boats with the most popular accessories that will make your boats more attractive to a renter to want to rent your boats. It is similar to the fishing guide market, but you don’t have to be on the boat to rent it out. With this asset, you could build a website, maybe have a small location near a popular boating lake, river, or reservoir, and run a nice little business.

10. Short Term and Vacation Rentals

There are several website that offer a service of connecting short term vacation renters to home owners that have short term rentals to rent. As an example, this fishing website advertises short term cabin rentals for their lake information pages.

11. Recreational Vehicle RV and Trailer Rentals

Similar to the boat rentals business model, you can do the same thing with RV’s where there are services that connect short term renters to invididuals that own RV’s that they want to rent out to these renters. This website has a great example of these types of services where you can advertise an RV rental to the website visitors.

12. Real Estate Investment Trusts (REITs)

The idea of having to make tenant calls, and collect the rent, or do the repairs is not for everybody. For those that want a little less hands on type of investment, there is the real estate investment trusts. These are companies that own, invest in, or manage real estate properties or assets that generate money. These companies have stocks on the stock market and you can buy these stocks just like you would buy any type of companies stocks. This is just an investment, and you don’t get into the day to day work that managing a rental property would entail.

13. Purchase a Business Franchises

There are many franchises out there that you could invest in and startup your own business. Many franchise owners outsource the management and day to day operations to people to run these companies for them so they don’t get tied up in the day to day operations, which would take up some of their valuable time to look for and continue with their investment strategies. I strongly recommend that you do hire one of the professional commercial real estate agent or business brokers that can help you to hopefully save you some time and money as you look for the perfect income producing asset.

14. Income Producing Business Asset

Another income producing business asset that is a hot topic in the investment world due to the amount of income that could possibly be generated with no day to day time committment to manage the business is the purchasing of business assets. With this type of investment strategy, which will vary depending on what you are looking for, and what you will find in those categories, you are typically similar to a silent partner of a business. Though you have no real ownership into the business, and no decision making for the business. You should be able to ask for a profit and loss statement to show the income levels over the last year or more to show you would you might anticipate you could make on the investment. The terms will vary by business opportunities available, and what you find, but in some instances you are only buying a portion of the yearly profits of the company. As with any investment, there is also risk associated with this investment. The opportunity for generating income can be high, depending on what you end up working out in the deal. I strongly recommend connecting with a professional commercial real estate agent or business broker that can help you find the perfect income producing business asset. As with any business type deal, you may also want to discuss this with your tax advisor, CPA, lawyer, etc.

15. Income Producing Business Websites

There can be big money made in building, buying, and selling websites. Whether you are building a website to monetize and make money from your website, or if you are building a website to sell the website to earn money from your hard work and get some profit and seed money from your next project. You can also buy websites and make them better and sell them to get a nice profit as well. You will need just a little bit of technical know how, but it’s not that hard anymore with the advancement in technologies and software that will help you build your own websites fairly easily. Websites are typically low overhead, and can be a great investment opportunity with very little cost involved in building your own.

16. NFT - Non-Fungible Tokens - Income Producing Assets

NFTs are quite the buzz in many social circles these days. From creating unique digital art, digital music, digital games, digital videos, to creating NFT Home Sales, and NFT Business Sales. NFTs can create an income stream that was not obtainable in the past. Simple to create and sell NFTs, or to buy and sell NFTs. Read more about making money with NFTs here.

17. Buy or Sell a Business or Income Producing Business Asset

If you’re looking to buy or sell your business you will want to use a professional who understands the market and may be able to save you both time and money. If you would like to discuss any of this further or the types of services that are offered, please contact Michelle Mendenhall as she is a member of the IBBA (International Business Brokers Association), a Certified Business Broker, and a Commercial Real Estate Specialist. Michelle Mendenhall Professional Business Broker, IBBA Commercial Real Estate Sales & Leasing Associate Phone: 916.459.7526 DRE #02116152 Website: LocalGirlGoesCommercial.com michelle.mendenhall@localgirlgoescommercial.com michelle.mendenhall@expcommercial.com At ViralStudioX, we highlight products and services that you might find interesting. We frequently receive free products from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. If you click a link on this page, then go on to make a purchase, we might receive a commission – at no extra cost to you, and does not impact the purchase price of any products that you may purchase.