This article is written by ATM investors. Please read our Editorial Guidelines for more information.
Maybe you’re looking to diversify your investment portfolio, or maybe you’ve researched real estate investing but just realized you don’t have the time and energy needed. Real estate investing is almost never It is indeed passive and does not avoid issues such as reduced cash flow among tenants.
Whether you are an experienced real estate investor looking for an additional source of income or The opportunity you are looking for is These are the best alternative investments to consider in 2024 that are less demanding but still profitable.
1. Automated Teller Machine (ATM)
It may sound surprising in the age of digital payments, but cash is still king. You may have read reports about the pandemic causing cash to disappear, but this is actually What to stay away from real is happening.
During the pandemic, when people were wary of touching physical currency, cash use did see a sharp decline. It is true that cash is not the preferred method of payment. Young people (18-24 years old) or Rich people prefer to use credit cards.
But one more thing: while cash use may is fallingcash holding no. In fact, according to recent ResearchSince 2021, cash holdings per capita in the United States have increased by $5, including among younger people. People like to use cash as a backup payment method – which means they need ATMs.
ATMs are a great investment opportunity as they are always in high demand among people who prefer cash. average ATM machine Used 300 times per month, the average withdrawal amount is $40. Given that the average ATM surcharge is $3.50, this money is deposited directly unit owner, you can earn a total of $1,050 per month from just one ATM. Now imagine you have hundreds or even thousands of them.
But the benefits of investing in an ATM machine don’t stop there. If there is a true form of passive investing, this is it. You can have hundreds of ATMs anywhere in the country without having to worry about maintaining or replacing faulty or vandalized ATMs: an ATM maintenance company will do all this for you, include Insure your ATM machine. This is where ATM Investors come in. Build, manage and operate ATM business representing accredited investors.
Think of it this way: You can earn a steady stream of passive income what is essentially Several small businesses already have a guaranteed, stable customer base.
2. Car wash
Car washes are another real estate alternative worth considering, although they require more research than investing in an ATM. Overall, car washes are A profitable Businessbut profit margins can vary greatly depending on the type of car wash you choose to invest in and its location.
this maximum Something to consider with a car wash is the initial investment in equipment, which can be considerable. Generally speaking, the more you spend, the more profit you generate over time. For example, you can spend Purchase self-service car wash equipment for $8,000 to $10,000 and generate approximately $40,000 in revenue one year. or you can spend Fully automated tunnel car wash costs $30,000 to $50,000 produce one Average annual salary: $686,250 There is only one car wash business.
While you can avoid spending money on staff by investing in automated car washes, you need to consider maintenance costs. When buying car wash equipment, you need Conduct a thorough review Its age, typical service life, and expected maintenance costs period Timeas these can eat into your profits.
You also need to carefully research where to invest. Typically, snowbelt and sunbelt locations are the most profitable because people need to wash their cars more frequently in places with extreme weather. However, on the other hand that owned by someone else precise Same idea – some towns are implementing it car wash ban Because there are so many of them. Ideally, look for local markets Not oversaturated with existing car wash.
3. Self-storage
Self-storage units are our third potentially profitable alternative investment. have Some Reasons why self-storage units are more attractive than traditional real estate investments. Most obviously, it’s a low-risk, high-demand investment. You’re still investing in real estate, but there are virtually no operating costs and there are fewer seasonal fluctuations.
all this means and you Less losses compared to traditional real estate units sitting vacant. You are also protected against non-payment by self-storage users because you can place a lien on their property.
A self-storage business offers a lot of flexibility, so you can be as hands-on as you want. You can become a completely passive investor and pay a self-storage management company. You can also manage the business yourself and offer lucrative add-on services, such as valet service to assist tenants during moves.
Low operating costs, flexible options, self-storage provide you with an opportunity Monetize real estate with higher returns. this Average return on investment for self-storage is 20.87% or typical cash return 14.5%. This cash return is well above the standard 8% to 12% you will meet the standard Real estate investment.
The only caveat with self-storage is where you choose to invest. While it’s true that self-storage demand isn’t seasonal, some locations have seen peak demand during the pandemic, especially Sunbelt relocation hotspots like Phoenix and Atlanta. The needs of these places has been reported to have declined, so as a self-storage investor you’ll need to do some of the same market research as investing in residential real estate. Look for emerging urban areas with more population movement and rents.
4. Gold, silver and other metals
Let’s imagine a slightly different scenario where you focus less on generating cash flow and more on Save The value of your existing capital. You want zero maintenance cost and zero involvement, this almost Exclude real estate investments – even turnkey investments can drain your capital.
If long-term stability of value is your main goal, choose gold. In fact, the high value of gold and other precious metals has not disappeared. If anything, the price of precious metals is continuing to rise.
gold price Gold alone is up 13.5% as of early June 2024 – that doesn’t mean it’s necessarily too expensive to buy now, as when prices rise Adjusted Inflation remains affordable to investors. The figure shows How reliable is the rise in gold prices during this period? Second-rate Economy and / or Geopolitical uncertainty. If you own gold, you can rely on it during turbulent times.
but Gold is only part of the vastness on site Opportunities to invest in precious metals. silver, Traditionally considered less profitable than gold, at present its trend Highest price since 2013. silver used for In everything from LED chips to semiconductors, its value is very high in the long run. The same goes for copper, This is A key Metals in green energy, used in solar panels, electric vehicle charging stations and cables.
Aluminum is the third metal to watch. Aluminum is vital to the transportation, construction and power industries, making it a valuable investment.
All these metals are extremely Low-risk investments because the demand for them will continue to grow over time, although the reasons for each investment are different. This investment will not generate cash flow for you, but it will for you Safety.
5. Private Equity and Venture Capital
The most successful investors have what is called a balanced portfolio. Some investments are low risk, while others are medium or even high risk. High risk can a very good one Thing: As you may have heard, high risk can also lead to high reward. you only Need to choose carefully.
As a private equity investor, you invest in private companies that are not listed on a public stock exchange. Essentially, you are investing in a new startup. You receive an ownership stake in their company in exchange for your investment.
The high risk comes from the fact that you could strike proverbial gold by investing in the next Apple, or you could end up losing all your investment in a business that fails in the next two years because vast majority Some of them do.
There is only one way to reduce this high risk of failure: invest in industries you know and understand. Investment seems to be a foolproof thing The next artificial intelligence (AI) company sounds cool, but if you know nothing about AI, you’re likely to invest in a useless product. Every industry has real pioneers and many mediocre companies Nothing really New products are launched into the market.
you need to do a lot of research An industry that understands where it’s going and where the lucrative opportunities are. Or, if you don’t mind spending a little cash in exchange for sound advice, hire an investment or financial advisor.
final thoughts
There are many alternative investment opportunities. Want the safest, lowest-risk place to park your funds? Consider investing in metals; only Don’t expect any cash flow. Want lots of easy cash flow with minimal involvement? ATM can provide you with this and ATM Investors is the perfect company to help you get started. Also, if you have a healthy body risk appetite and in-depth understanding of emerging industries, private equity investments can potentially This can give you huge returns in just a few years.
It’s all about assessing where you stand on key aspects such as risk, involvement and expected cash flow. Once you decide what type of investor you are, you can start researching suitable opportunities in your chosen niche.
This article is provided by ATM Investors
ATM Investors establish, manage and operate ATM businesses on behalf of accredited investors. Their joint venture structure allows accredited investors to own the business and assets while benefiting from above-market returns, a 60% depreciation rate and a pre-planned exit strategy.
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.