In today’s uncertain and competitive world, relying on a single source of income is not enough. You need to create multiple streams of income and diversify your portfolio to achieve financial freedom and security. In this article, I will share with you some of the best ways to invest in real estate without buying property, start a side hustle that generates passive income, and diversify your portfolio with alternative assets.
How to Invest in Real Estate Without Buying Property
Real estate is one of the most lucrative and stable investments you can make. However, buying property requires a lot of capital, maintenance, and risk. Fortunately, there are alternative ways to invest in real estate without owning physical property. Here are some of them:
- REITs: REITs, or real estate investment trusts, are companies that own and operate income-producing properties, such as apartments, offices, malls, hotels, etc. You can buy shares of REITs on the stock market and receive dividends from the rental income and capital appreciation of the properties. REITs are regulated by law to distribute at least 90% of their taxable income to shareholders, making them a great source of passive income. Some of the best REITs to invest in are Vanguard Real Estate ETF, iShares Global REIT ETF, and Schwab US REIT ETF.
- Fractional Real Estate: Fractional real estate is a way of investing in a portion of a property, rather than the whole property. You can buy fractions of properties through platforms like Fundrise, DiversyFund, and Roofstock. These platforms allow you to access high-quality properties with low minimum investments, diversify your portfolio across different markets and property types, and enjoy the benefits of rental income and capital appreciation. You can also sell your fractions at any time, without the hassle of finding a buyer or paying commissions.
- Crowdfunding Platforms: Crowdfunding platforms are another way of investing in real estate without buying property. These platforms allow you to pool your money with other investors and fund real estate projects, such as development, renovation, or flipping. You can earn returns from the interest payments or profit sharing of the projects. Some of the best crowdfunding platforms for real estate are CrowdStreet, RealtyMogul, and PeerStreet. These platforms offer a variety of projects with different risk and return profiles, and allow you to diversify your portfolio across different geographies and asset classes.
How to Start a Side Hustle that Generates Passive Income
A side hustle is a way of making extra money outside of your main job. A passive income side hustle is one that requires minimal or no active involvement from you, once you set it up. A passive income side hustle can help you increase your income, save more, pay off debt, or achieve your financial goals faster. Here are some of the best side hustles that can generate passive income for you:
- Blogging: Blogging is a way of creating and sharing content online, on topics that you are passionate or knowledgeable about. You can monetize your blog by displaying ads, selling products or services, or promoting affiliate offers. You can also build an audience and a brand around your blog, and leverage it for other opportunities. Some of the best blogging platforms are WordPress, Medium, and Substack. Some of the best blogging niches are personal finance, health and wellness, travel, and lifestyle.
- Podcasting: Podcasting is a way of creating and distributing audio content online, on topics that you are interested or skilled in. You can monetize your podcast by selling sponsorships, merchandise, or memberships. You can also grow your network and influence by interviewing guests, collaborating with other podcasters, or joining podcast networks. Some of the best podcasting platforms are Anchor, Buzzsprout, and Podbean. Some of the best podcasting niches are business, education, entertainment, and sports.
- Creating Online Courses: Creating online courses is a way of teaching and sharing your knowledge and skills with others, on topics that you are proficient or experienced in. You can monetize your online courses by selling them on platforms like Udemy, Skillshare, or Teachable. You can also build your reputation and authority by providing value and solving problems for your students. Some of the best online course topics are web development, digital marketing, graphic design, and language learning.
How to Diversify Your Portfolio with Alternative Assets
Alternative assets are any type of investment that is not a traditional asset, such as stocks, bonds, or cash. Alternative assets can help you diversify your portfolio, as they tend to have low or negative correlation with the stock market, and can offer higher returns, lower volatility, or unique benefits. Here are some of the best alternative assets to invest in:
- Cryptocurrencies: Cryptocurrencies are digital currencies that are powered by blockchain technology, which is a decentralized and secure system of storing and transferring data. Cryptocurrencies can offer advantages such as fast and cheap transactions, global accessibility, transparency, and privacy. They can also serve as a hedge against inflation, currency devaluation, or political instability. Some of the best cryptocurrencies to invest in are Bitcoin, Ethereum, Cardano, and Polkadot.
- Art: Art is a form of expression and creativity that can have aesthetic, cultural, or historical value. Art can offer benefits such as emotional satisfaction, social recognition, or intellectual stimulation. It can also appreciate in value over time, as the demand for art exceeds the supply, and as the quality and rarity of the art increases. Some of the best ways to invest in art are through platforms like Masterworks, Otis, and Artory. These platforms allow you to buy and sell shares of artworks by famous artists, such as Picasso, Warhol, or Banksy.
- Collectibles: Collectibles are any type of item that is rare, unique, or desirable, and that can have sentimental, nostalgic, or historical value. Collectibles can include things like comic books, trading cards, stamps, coins, toys, or memorabilia. Collectibles can offer benefits such as fun, enjoyment, or nostalgia. They can also increase in value over time, as the demand for collectibles grows, and as the condition and scarcity of the collectibles improves. Some of the best ways to invest in collectibles are through platforms like Rally, Collectable, and Vinovest. These platforms allow you to buy and sell shares of collectibles, such as sports cards, vintage cars, or fine wine.
Creating multiple streams of income and diversifying your portfolio are essential strategies for achieving financial independence and security. In this article, I have shared with you some of the best ways to invest in real estate without buying property, start a side hustle that generates passive income, and diversify your portfolio with alternative assets. I hope you found this article helpful and informative.