It doesn't really matter what kind of investing you are participating in, it's almost always a wise idea to have multiple streams of income in order to maximize your profits while spreading your risks. Even within the confines of real estate investing there are different types of investing that can help you spread your risks when markets meet turbulent times and this is a very good safety net for those who do not want to feel as though they are gambling away their investments on a real estate market that is fickle on its best days.
You really have two course of action when it comes to bringing in
multiple streams of income when building your financial portfolio. The
first is to spread your real estate wealth and investments across
several different types of real estate investments. There are a few
types that come immediately to mind. First there are rental properties.
You have two options even with these. You can either choose to rent
properties outright to families, students, singles, and the elderly in
your town or you can offer a lease or rent to own situation for those
who have struggled in the past but still have the dream of home
Other options for bringing in multiple streams of income through
real estate is to have a few rental properties and couple those with a
few flips in the works, perhaps a commercial property or two, and a
pre-construction deal or vacation condo in the pipelines. One thing is
certain you should always be on the lookout for your next real estate
investment if you really want to make good money in this business while
having a little added security. Rentals are passive income for the most
part, especially if you have a solid property manager taking care of the
details and the other investments are often icing on the cake.
If you want a truly diversified portfolio however, it is a good plan
to include a few investments that aren't related to real estate
investing. While I firmly believe that real estate investing is the way
to go for most people there is much money that can be made in other
fields and it would be pointless to discuss multiple streams of income
without mentioning a few that were unrelated to real estate investing.
Retirement plans are a great option and you can now invest in a
retirement plan of your own even if you are self-employed. It is
definitely worth considering as yet another stream of income, even if it
is income that you will need to wait a while to receive. Franchise
businesses are often great money makers for those who need more
immediate results from their investments efforts, and stocks and bonds
are also great long term investment strategies.
The truth is that there are many things you can do to create even more
streams of income to add to your real estate investments. From making
money online through affiliate marketing, blogs, and direct sales you
can also tackle brick and mortar businesses, though these tend to be
just as time consuming as real estate. The point is that you want to
bring in money from different avenues and real estate investing is one
of many different routes to explore when deciding on your investment
future and establishing those multiple streams of income.