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March 11, 2024
7 Alternative Investments You Might
be Missing Out On
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7 alternative investments

Did you know that around a third of Americans have never heard of alternative investment? It isn't a surprise that many crazy investment options go unheard of by beginners and low-income investors.

In this blog, we'll introduce you to some investment opportunities that are ripe for picking in 2024.
Alternative Options for Daring Investors
Let’s start with basic alternative investment roadways you should consider as passive income sources:

● Farmlands: The value of farmland is rising (6% between 2019 and 2020). It has a high demand in states like Missouri from renewable energy companies. It’s also exempt from different taxes.

● Fine arts: Investing in art pieces is risky yet highly profitable. It can be long-term (10+ years in most cases), so you should consult experts before investing in fine arts.

● Collectibles: Classic cars, Beanie Babies, expensive wine, coins, and stamps are some examples of collectibles. Collectibles are risky but an excellent investment for bold investors.


 
Why is real estate the Best Alternative Option?
But if there is one alternative investment option far better than anything else, it is real estate. Collectibles and fine arts offer you the following benefits:

● Growth over a long period

● Protecting your purchase power

● Low-correlation investing

However, real estate offers those three and three more benefits:

● Current income (massive cash flow)

● Heavy tax benefits (especially on mobile homes)

● Appreciates with time (2 to3 percent annually)


How to Invest in Real Estate?
While other investment options like oil & gas, venture capital, crypto, and hedge funds look promising to young, high-income investors, real estate takes the lead in the alternative investment market. Experts describe the investment potential of real estate as “no tenants, toilets, or trash.” Here is a simple way to break into the real estate niche and diversify your portfolio:

● Locate underperforming properties, e.g., “forgotten children”

● Do your due diligence to find a property’s hidden value

● Acquire the property either alone or via crowdfunding

● Reduce expenses and renovate the property for added value

● Sell the property if it’s been stabilized for a year or two

In short, if you want to diversify your portfolio, save retirement money quickly, and maintain your lifestyle after retirement, invest in real estate. If you need more money to invest in real estate, try these fantastic venture options and start with minimum investment.


Comparing 3 Alternative Investment Options
Some of the most profitable alternative real estate options for low-income investors include the following three:

1.Crowdfunding: Many investors come together through online platforms and pool their money in real estate projects. You should choose this option if you want to diversify your portfolio without large amounts of capital. Accessibility and diversification make crowdfunding a very unique alternative investment opportunity.

2. REITs: If you want to invest in real estate without owning/managing properties, try REITs or real estate investment trusts. These companies operate income-generating real estate, owning over $4 trillion in properties today. REITs offer liquidity and income, letting income-oriented investors diversify their portfolios with low investment minimums.

3. Private Placement Syndications: If you can invest up to $25,000, choose private placements over REITs. You and other investors will pool their capital just like they do in crowdfunding. However, private placements lack liquidity since they aren't publicly traded. However, syndications offer higher returns and more control over investments than the other two options.


Conclusion
Now, your job is to go through all these investment options and find the most suitable one. Contact us if you want to invest in alternative options like mobile homes and RV communities. Suncrest Capital is a private equity firm that raises capital from retail investors to buy and operate real estate. Let us know how we can help you on your investment journey.
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