A volatile stock market and crummy interest rates ensure that some people become creative about investing money. Before dealing with innovative investments, experts advise a cap of 5-15% of an overall portfolio. Here are some weird and unusual ways used for investing money:
Fine Art
Source: Pexels
The stock market took a beating in 2018, and with dark political and economic clouds looming ahead, now is a good time for alternative investments. One interesting option to consider is art investments. Buying and selling famous paintings has been traditionally reserved for ultra-wealthy, but the common man can now get into the game. Companies like Masterworks pool people’s money and purchase blue-chip artwork, claiming returns exceeding 10% annually on your investment. Don’t withdraw your entire savings to buy a Monet, but this is a good option when options are poor.
Ebay Land
Ebay users may remember the infamous “Virgin Mary” cheese sandwich with the price tag of $24,000. What about the Mojave Desert corner plot that sold for $57? Ebay has hosted a plenty of cheap land/plot auctions like those and most plots are dirt cheap for a reason: their poor location ensures that there’s no demand. However, some investors are not deterred from scooping them up, hoping that they will be worth a bucket of cash. They possibly bet upon McDonald’s opening in a Death Valley location.
Music Royalties
Source: Pexels
The Theme Song from the Monkees goes thus “Hey, hey, we’re the Monkees”. Would you believe this song produces about $10,000 a year in royalties and it’s possible to earn a piece of these royalties by purchasing at auction, a share of the song. Songwriters can sell a part of royalties on well-known websites like TheRoyaltyExchange.com and SongVest.com and these auctions are open to all. The Monkees’ Theme song is an example of several songs up for sale, with shares starting at $3,000. You receive royalties until the copyright ends (typically 95 years from the artist’s death). The Monkees’ signature song will ensure copyright royalties until 2099!
Tax Lien Certificates
Many homeowners are unable to pay property taxes in a rough economy, enabling investors to take advantage by purchasing the county’s tax lien. As local governments cannot wait to collect tax bills, tax liens are auctioned for purchase by savvy investors seeking high interest rates with low risks.
Hurricane Options
Source: Pexels
A group of investors closely watch weather trends in the tropics as Weather Risk Solutions has an online trading market allowing traders to bet on where a hurricane /typhoon/cyclone might land. Traders purchase and sell off Hurricane Risk Landfall Options for different regions in the Atlantic/ Gulf coasts. Should a hurricane hit the region covered by the investor’s option, pay-outs are split with others on the winning bet. The beta stage exchange is work in progress, but attracts a wide range of investors familiar with disaster markets.
Bank Account Bonuses
While customers of Bank of America deal with new fees on-and-off, a few banks still pay large bonuses those new customers who open an account with them. Bank bonuses are easily the quickest ways to make a great return on your money in the shortest possible time. You easily locate an updated list on the internet of bank bonuses.
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FAQs
The BRRRR strategy is an effective way to buy and hold investment properties with easier access to your capital since you don't need to sell the property to get money or pay short-term capital gains taxes, which reduces your upfront profit.
Why is gold another great investment option? ›
Gold is valuable due to its rarity, durability, and historical significance as a medium of exchange and store of value. It tends to hold its value during economic turbulence, and investors appreciate its potential for a safe haven. It is also used in jewelry and electronics, so there are some real-world uses of gold.
What is the best investment for cash at this time? ›
CDs, high-yield savings accounts, and money market funds are the best places to keep your cash when it comes to interest rates. Treasury bills currently offer attractive yields at the lowest risk. Learn how they compare in terms of yield, liquidity, and guarantees.
What is the BRRRR method with no money? ›
With every investment there are costs. The BRRRR and our No Money Down options help investors mitigate cash out of pocket and costs to provide a great return. The BRRRR method is to Buy a distressed property, Rehab the property, Rent the property, Refinance the property for cash out to Repeat the process.
How risky is brrr? ›
Potential risks associated with the BRRRR strategy
The biggest risk is the ever-fluctuating real estate market, including property values, interest rates and renovation costs that can all impact the profits of your investment.
What is the 70% rule for BRRRR? ›
This rule states that the most an investor should pay for a property is 70% of the After Repair Value minus the estimated rehab cost. The idea is that the remaining 30% will cover the real estate commission, closing costs and so forth while still leaving a healthy profit.
Are 1 oz gold bars a good investment? ›
Investing in 1-ounce gold bars can be a prudent move for those who are looking to diversify their portfolios and safeguard against economic uncertainties. However, it's crucial to approach this investment with a clear understanding of the market, associated costs and the long-term commitment required.
What is better than gold to invest in? ›
stocks: Which is the better investment? Stocks have generally performed better than gold over the years, but there can be exceptions.
Is 2024 a good time to buy gold? ›
And, 2024 is a great time to get started. By investing in gold now, you'll boost your protections against still present (but cooled) inflation and you'll diversify your portfolio to better protect against any future economic concerns.
What is the safest investment with the highest return? ›
7 High-Return, Low-Risk Investments for Retirees
- Money market funds.
- Dividend stocks.
- Ultra-short fixed-income ETFs.
- Certificates of deposit.
- Annuities.
- High-yield savings accounts.
- Treasury bonds.
Investments That Can Potentially Return 10% or More
- Growth Stocks. Growth stocks represent companies expected to grow at an above-average rate compared to other companies. ...
- Real Estate. ...
- Junk Bonds. ...
- Index Funds and ETFs. ...
- Options Trading. ...
- Private Credit.
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
What is the BRR method? ›
If you're interested in residential real estate investing, you may have heard of the BRRRR method. The acronym stands for Buy, Rehab, Rent, Refinance, Repeat. Similar to house-flipping, this investment strategy focuses on purchasing properties that are not in good shape and fixing them up.
What is the 1 rule in BRRRR? ›
What is the 1% Rule in BRRRR? The 1% rule in BRRRR investing is a quick method to determine how much rent to charge as a landlord. If you follow the 1% rule, the rent you charge your potential tenants should equal at least 1% of what you paid for the house, including renovation costs, repairs, and other improvements.
What is arv? ›
Share: If you're thinking about flipping a house or even just planning to remodel your own home, you may have heard of after-repair value, also known as ARV. After-repair value is a measure used by real estate investors and house flippers to estimate the future value of a property after renovations.
Does brrr actually work? ›
Pros. If the property is low enough in value and you do enough work in the renovation process, you can expect to make a healthy profit from a small investment. BRRRR is a repeatable real estate investing process that is easy to scale.
Does the brrr method still work? ›
Yes, the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) can still be an effective real estate investment strategy in 2024, as its core principles remain sound. However, like any investment strategy, its effectiveness can vary based on market conditions, location, and individual circ*mstances.
What are the downsides of Brrr? ›
Disadvantages of the BRRRR Strategy
- You need to qualify for a mortgage in order to purchase a property. ...
- You have to find a deal that makes sense. ...
- You may have to leave some of your initial investment in the deal.
Hence, here are a few disadvantages of the BRRRR method. Securing financing can be a big challenge for some, especially for the first property that you buy. You need to get a loan at an interest rate so that the loan-to-value (LTV) ratio is in your favour.
