9 Investments with Better ROI Than Property Management
As a property owner, you’ve probably at least once thought, how did I get myself into this? You’ve seen the worst as a property owner, even more so if you’ve dealt with bad tenants. Below are 9 investments with better ROI than property management.
You probably thought investing in real estate would be simple and stress-free with great returns. Real estate investing has often generated great returns but it does come with a great deal of risk, particularly if you are a property owner that rents your property.
We’ve compiled nine investments with potentially better returns than property management.
#1 Fund Peer-to-Peer Lending Websites
The craze with peer to peer lending (P2B lending) is here and it’s legitimate. P2P platforms allow you to lend money to qualified borrowers where essentially you become your own bank. The platforms use similar evaluation models such as FICO scores to qualify borrowers. The key is to diversify across platforms to ensure a balance of solid returns with manageable risk. Best of all, this can be all done within the comfort of your own home. With selective investments, some have earned more than double the common rate of return on real estate investments.
#2 Engage in Automated Investment Portfolios
Automated investing has made investing in the stock market simple. No matter what your tolerance for risk is, there is a portfolio for you. All major and a few new brokerages have automated investing portfolios that adjust and optimize your investments using algorithms. Whether you want to be aggressive or play it safe, there’s an opportunity for great returns. Automated investment portfolios are flexible based on how long your looking to invest for and what your financial goals are. They can be used to put funds aside for a major purchase (ultra-safe) and long-term retirement type investing.
#3 Continue Your Education
Yes, invest in yourself. Continuing your education can pay huge dividends if done right. First, educating yourself is an investment that will last a lifetime as well as deliver personal fulfillment. Second, a degree in the right field can deliver boosted income of $100K+. Ask yourself, how will you evolve as you continue your education? You’ll see betting on yourself is always a smart move. Our nation’s top universities offer online programs to get your first or enhance your degree. You can get an elite education while continuing your career or from home.
#4 Pay Off Your Credit Cards
If you’re carrying high-interest debt such as credit cards, it’s best you pay these down. Interest rates on credit card can shoot up to 30% in annual interest charges. Any cash on hand should be used to eliminate the damage these rates do. In addition, your debt to income ratio can affect your interest rates on auto and home loans. Paying off high-interest credit card debt is always a smart move. If you have multiple credit cards, knock the one with the highest interest rate first.
#5 Pay Down Your Mortgage
Paying down your mortgage can eliminate interest you pay on your home loan. Paying early can save you thousands of dollars in mortgage interest payments. Homeowners often forget about this option because they get complacent with their monthly payment. Take a close look at your statement and contact your home loan servicer to see just how much you can save.
#6 Max Out 401K and IRA
The power of compounding interest compares to nothing. Saving now multiplies your investment for your retirement. If you’re employed and they match your contributions, you should be maxing that out. Some IRA’s have tax benefits in addition to the interest you’ll receive by investing for retirement. Invest in your retirement and one of the best ways is through 401k and IRA investing. ROTH IRA’s allow you to invest with tax advantages. Learn more about them to see which one is right for you and start today. Every day you wait can mean less for retirement or other goals you might have.
#7 Create an Online Store
Start earning revenue by opening your own online store. Yes, it’s possible and many websites make it very easy to open up shop in less than a few hours. People are shopping online 24/7 and you can get a piece of that. You’ll be amazed at what people are selling and buying. Start with simple items such as those in your garage and start listing today. There’s a bit more to it but there have been huge success stories from normal people selling items they’ve created or reselling items they’ve found themselves. You don’t need to be able to code your own website. You just need something to sell. Get started there.
#8 Passion Investing
Who doesn’t want to make money investing? Wouldn’t it be harmonious to be able to invest, get a return and help save humanity? Well, that might be too far. But there are many investing platforms that make it easy to invest in humanitarian causes or businesses that are great for the social environment. After all, we have to leave this planet in great shape for our kids. Every broker enables you to invest in these types of investments so start investing in causes that you care about.
#9 Sell Your Property for a Profit
An easy way to cash out is to sell your property with or without tenants. Sometimes, cashing out is the fastest way to get out without losing your shirt or going through a tough process such as evicting troubled tenants. You also can avoid dealing with banks, fees, costly repairs, realtors and the listing process which can take more than three months in some markets. And that’s if you price it right. Selling your house for cash is a simple process and most importantly, enables you to move your cash to more profitable ventures or simply, move on.
And there you have it; all of these financial options are paths that give you an opportunity to effectively use your cash and more importantly your time better elsewhere.
Max Cash Home Offers offers instant cash offers on houses nationwide. We do not provide legal or financial advice. For information on foreclosure, eviction or any other legal situation make sure you contact a local attorney.
Author: Ryan Cruz
Ryan received his Bachelors of Science in Business Administration from the University of La Verne. Ryan has a strong passion for marketing and the real estate industry while leading and managing all online marketing efforts for Max Cash Home Offers.