$DollarSign, Kearsedge Boston's platform for particpating real estate partnerships
is launching. Providing institutional quality real estate for accredited investors,
$DollarSign's team of experienced professionals scours the nation for commercial
real estate that represent the best investments.
$DollarSign expects to post at least one new opportunity on its platform each week.
With good returns on investment, high targeted IRRs and consistent monthly income,
$DollarSign is certain to provide investors with the real estate diversification
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All $DollarSign investments feature consistent monthly income with a share of
equity. Perry Jones, Vice President of Business Development for $DollarSign
states, "Our team seeks out the best investment grade commercial real estate
assets across the country. From the dozens of assets we review each week, we
expect to present just a single institutional quality opportunity that meets our
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website here.
Sunday, November 8, 2015
How to Get Double Digit Annual Returns
Double digit annual returns? Impossible? Not with
private equity funds or hedge funds.
Until the market crash of 2008, many private equity
funds and hedge funds enjoyed annual gains of 100% or more. Some of the highest
flying funds realized returns of 20% or 30% or more each month.
With the market crash, monthly returns in the double
digits are nearly impossible but annual double digit returns remain
commonplace.
Private Equity funds and hedge funds were relatively
unregulated until the Bernie Madoff scandal and other less notorious scandals
spoiled the party.
Following the crash of 2008, the SEC has enacted a
series of regulations that have held private equity fund and hedge fund
managers more accountable and their actions more transparent.
From the 1990s to the early 2000s clear distinctions
could be made between private equity funds and hedge funds, but over the last
few years these terms have become essentially interchangeable.
A hedge fund or private equity fund is a largely
unregulated business partnership in which the partners pool their capital in
the hope of obtaining absolute returns. The primary difference between a
private equity fund and a hedge fund is their investment focus or strategy.
Private equity funds invest solely in private equity investments while hedge
funds may invest in any type of investment.
An absolute return is a measure of gain or loss
expressed as a percentage of the total invested. A private equity investment is
a security or debt offering that is private – not open to the public. Only
“sophisticated investors” may invest in private offerings. A sophisticated
investor is an investor who is considered to have the range and depth of
investing experience and knowledge to weigh the risks and merits of an
investing opportunity.
Both private equity funds and hedge funds are
structured as limited partnerships with the fund manager as the general
partner.
Benefits and risks differ substantially from the more
common investments such as public stock purchases, mutual funds, CDs or
annuities. Private equity funds and hedge funds present a greater risk than
more common investments because they seek absolute rather than relative
returns. Because of this, the risk is also potentially higher but the reward
can also be many times greater.
Mutual funds and other traditional investments seek
relative returns which is a simple return on a year over year basis. The
benefit in investing in a private equity fund or hedge fund is the potential to
receive greater gains than other investments. The risk in these investments is
the possibility of losing all your money to mismanagement, market fluctuations
or fraud as the investors who trusted Bernie Madoff can attest. Because of
these risks, private equity funds and hedge funds require investors to be
sophisticated investors.
Participating in a private equity fund or hedge fund
is open to any person or business that meets the SECs definition of a
“sophisticated investor.” A sophisticated investor must also be an “accredited
investor” which is any person who has a net worth of one million dollars or
more and a net income of at least
$200,000 in each of the previous two years. Businesses with assets of at least
five million dollars or a president, general manager or director of such a firm
and other entities such as banks, sovereign wealth funds, endowments and
pension funds would also qualify as accredited investors.
Fees associated with private equity funds and hedge
funds may vary but usually are divided into two types; a management fee and an
incentive fee. A management fee – often 2% - is charged to the investor to
participate in the fund. Incentive fees are performance based fees – typically
20% - and are awarded to the management team based on the absolute return
generated by the fund.
Smaller funds are better. A smaller fund has
distinct advantages over a larger fund in that it has a greater number of
investments to choose from (how many 1 billion dollar investments are available?)
and it is easier to achieve a higher level of return. A fund of one billion
dollars would have to earn 100 million dollars to achieve a 10% return but a
fund of 100 million dollars would have received a return of 100% on the same
investment.
There are over 6,500 private equity and hedge funds.
Some of the most well-known funds include Mitt Romney’s alma mater, Bain
Capital, plus The Blackstone Group, Apollo Global Management, Warburg Pincus,
Tiger Global, Davis Capital and Kohlberg Kravis Roberts.
Private equity funds and hedge funds vary widely in
their risk parameters, investing strategies and entry requirements.
Consultation with your financial advisor and or legal advisor is highly
recommended prior to any investment.
This article is
provided for informational purposes only and does not purport to provide
financial or legal advice of any kind. Neither does it promote or disparage any
fund or the private equity or hedge fund industry. Always consult with a
financial advisor and or a legal advisor before making any investment decision
and never, never invest more than you can afford to lose.
20 Sources of Passive Income
What do
the rich do with their paycheck on pay day?
They invest it.
And now you can too.
If you truly want to get rich and live a life of luxury, then you must master the ability to generate cash flow from passive income sources. Without this ability, you may be stuck forever in your job - working for a living - wondering where the next paycheck is coming from or whether or not you'll even have a job tomorrow. This article presents some of the ways you can get out of the rat race by investing your hard-earned cash and begin living the lifestyle you desire. Passive income is the key.
But first, let's define what the word "rich" means:
Rich means having the wealth to live the lifestyle you desire.
Wealth is derived from income.
Income is a result of positive cash flow from passive investments.
This article will look at 20 sources of passive income, but we will not consider the risk factors nor the return on investment. We will be looking solely at the several sources that provide passive or near-passive income.
They invest it.
And now you can too.
If you truly want to get rich and live a life of luxury, then you must master the ability to generate cash flow from passive income sources. Without this ability, you may be stuck forever in your job - working for a living - wondering where the next paycheck is coming from or whether or not you'll even have a job tomorrow. This article presents some of the ways you can get out of the rat race by investing your hard-earned cash and begin living the lifestyle you desire. Passive income is the key.
But first, let's define what the word "rich" means:
Rich means having the wealth to live the lifestyle you desire.
Wealth is derived from income.
Income is a result of positive cash flow from passive investments.
This article will look at 20 sources of passive income, but we will not consider the risk factors nor the return on investment. We will be looking solely at the several sources that provide passive or near-passive income.
Before
you begin any investment plan, the first rule is to consult with a qualified
investment advisor. By talking over your plan and considering possibilities you
may not have considered, you will protect your capital to the greatest degree
and help protect it from potential loss while multiplying your return.
1. ETFs - Exchange Traded Funds - This is a fund that tracks the performance of an index such as the Dow Jones or Standard and Poor 500 or a basket of assets or commodity. Trading in the same manner as a stock, its price will vary according to the days' trading demands. Benefits of owning an ETF include the ability to sell short, buy on margin and to buy as little as one share. Expense ratios are often less than mutual funds. One common ETF is called a spider - SPDR - and tracks the S&P 500 Index. Look for the symbol SPY to research or to purchase.
2. Annuity - An annuity in the United States is a contract between you and an insurance company in which the insurance company is obligated to provide you with certain specific income over a period of time after you have contributed monthly payments over a period of years. To translate, an annuity is a period of monthly payments to you after you have paid in monthly payments to an insurance company. Annuities come in the form of fixed and variable annuities. Consult with your financial advisor or CPA to ascertain whether this is an appropriate investment option for you.
3. TIPS - Treasury Inflation-Protected Securities - Offered by the U.S Treasury, these are securities that are indexed to the rate of inflation meaning your dividend will increase as the rate of inflation increases. A TIPS pays interest every six months and pays the principal upon maturity. Also a conservative investment, you may want to consider these if you are looking to preserve and protect capital from the ravages of inflation while providing a consistent and dependable income, but your money may not grow at the rate you would prefer - but then we aren't looking at capital appreciation anyway.
4. Mutual Funds (Income Funds) - As we are only considering sources of passive income, we are only going to look at income mutual funds. These may be called "growth and income" funds or "income" funds or "value" funds. Nearly every mutual fund family will have their own set of income or growth and income funds. Morningstar(TM) and other services provide third party ratings that you can use to identify the safest and highest paying income funds. Invest wisely and always consult a qualified investment advisor before investing. Mutual funds are also required to send you a prospectus (a formal disclosure of the funds fees, objectives and operating guidelines) for your review before you can invest. Review the prospectus carefully and consult with your financial advisor for terminology you may not understand.
5. Dividend Paying Stocks - This is perhaps the most familiar method of passive income. Anyone who knows anything about Wall Street knows that companies pay dividends to people who own their stock. Right? Well, most of the time. Many newer and smaller companies will use their income to grow the company instead of paying dividends and any company that incurs financial trouble may stop paying dividends. So if you are going to buy stock to acquire the income make sure the company has a track record of paying dividends. The best known American companies - commonly referred to as the "Blue Chips" are also the companies that traditionally have paid dividends most consistently. As with all other investments, research is necessary to capture the best dividends and target those companies with the most potential in future years.
6. REIT - Real Estate Investment Trust - One of my favorite investments because you own a portion of the real estate (or mortgages) the trust invests in. These also trade like a stock on the exchanges. An Equity REIT buys ownership (equity) in properties while a Mortgage REIT buys the mortgages on properties. Two key advantages to owning an REIT are the tax advantages and the liquidity of the security - you trade it just like a stock.
7. T-Bills, T-Bonds & T-Notes - Treasury Bills, Treasury Bonds and Treasury Notes - Considered to be the safest of all investments because they are issued by the United States Treasury Department, these vehicles are also among the lowest yielding. But you sacrifice yield for security whenever you invest. T-Bills, Bonds and Notes are most often purchased through your bank, broker or they may be purchased directly from the US Treasury Department through their Treasury Direct online service. Although you will not receive a high rate of return, the security of your investment cannot be any higher than it is with these investments.
8. Bonds - A bond can provide a secure and stable source of income for anyone. By definition, a bond is a debt issued by an authorized organization - often a corporation, municipality or utility. A bond sells for the issue price, matures (is paid back to you) at the principal (face amount or nominal price) and in between you collect interest that is called the coupon rate. Bonds are often purchased in the form of mutual fund bond funds. Some of these can be very lucrative with a yield exceeding that of equity funds but these are often hard to find.
9. Canadian Oil and Gas Trust - This is an organization that invests in oil and/or gas production and possibly mining in Canada. Several of these are now trading on the American (US) exchanges. Purchase is the same as purchasing a stock in any other company. Tax advantages are similar to those of an REIT and a big advantage - the one I like the most - is that some of these trusts pay ridiculously high dividends - and they pay monthly! My advice: do your research, find a Canadian Oil and Gas Trust you like and then invest as much as you can.
10. MLP - Master Limited Partnership - Want a limited partnership that you can sell or trade as easily as a stock? Enter the Master Limited Partnership. These hybrid organizations feature the limited liability of a partnership while enabling you to trade the partnership units - investment units - just as you would a stock. What could be better? A MLP offers distributable cash flow as well as income. A Master Limited Partnership must be researched and understood before a reasoned decision can be made regarding the purchase of a MLP for your investment portfolio.
11. Business Ownership - No, this isn't what you think. Owning a small business for most people is worse than working 9 to 5. In your own small business you get caught up in the details, trying to make the business go, searching for a market, dealing with customers; it quickly becomes more than a full-time job. That's OK if that's what you love to do. But, what we mean here is starting a business or franchise with the short term goal of handing it off to someone to run. The faster you can do this the better. If you can do it from the very beginning so much the better - the more time you free for yourself, the more time you will have to enjoy and/or create more passive income sources. A book that will help you is The E-Myth Revisited by Michael Gerber, another is The Four Hour Workweek by Timothy Ferris. Both of these books will help you structure your business ownership in a way that frees you from actually running the business yourself - margaritas on the beach anybody?
12. Tax Liens and Notes - A primary benefit of tax liens is the higher interest rate you receive on your investment plus the fact that your principal is backed by real estate. Please note that you will almost never receive the property from investing in tax deeds, liens or notes; the primary benefit is the favorable interest rate and the security resulting from a real estate backed transaction. Avoid organizations that suggest you will be receiving the property the tax instrument is against. Another benefit of this type of passive income is that you can invest online from almost any state in the country - be sure to review Texas tax deeds, interest can be as high as 50% annually in some cases.
13. Preferred Stock - A Preferred Stock is a security issued by a corporation that usually features a specific dividend rate. Preferred stock usually does not have voting rights except sometimes in extraordinary events. Preferred stock also receives priority over common stock holders when dividends are distributed - preferred stock holders must be paid first. And preferred stock holders also receive preference if the company is ever dissolved. As always, research thoroughly before investing.
14. Asset-Backed Securities - These investments are issued by corporations and are based on a pool of underlying assets. The cash flow from these assets provide the dividend payments made to the holders of the security. The asset pool can consist of almost any type of asset which provides a cash flow. Usually sold initially to a market maker type organization such as an investment bank, these securities may be resold to the general public by the broker. Contact your broker for more information on these types of investments.
15. Real Estate - Almost everyone knows - or at least is intuitively aware - that big money can be made from real estate. Real estate provides tax advantages as well as the opportunity to leverage your investment - leverage being a factor that is limited or absent in many other investments. Many real estate advisors and gurus insist that the one house at a time or the flipper strategy or fixer upper or wholesale method or other flavor of the month is the absolute best way to make money in real estate. But, these are generally not passive investments - you usually have to put a lot of time and hard work into such strategies.
Making big money passively in real estate is possible with highly leveraged deals which are a certainty only in commercial property. Multiple family properties, office buildings, retail facilities and warehouses would all constitute commercial property. Of these, the best strategy is to invest in multiple family properties. The bigger, the better. This requires knowledge and education more than it requires capital. Capital can always be acquired through your network, but knowledge is the one ingredient that will make this passive investment strategy work. And, with a big property, the income from that one property may be all you need to secure your retirement - today!
1. ETFs - Exchange Traded Funds - This is a fund that tracks the performance of an index such as the Dow Jones or Standard and Poor 500 or a basket of assets or commodity. Trading in the same manner as a stock, its price will vary according to the days' trading demands. Benefits of owning an ETF include the ability to sell short, buy on margin and to buy as little as one share. Expense ratios are often less than mutual funds. One common ETF is called a spider - SPDR - and tracks the S&P 500 Index. Look for the symbol SPY to research or to purchase.
2. Annuity - An annuity in the United States is a contract between you and an insurance company in which the insurance company is obligated to provide you with certain specific income over a period of time after you have contributed monthly payments over a period of years. To translate, an annuity is a period of monthly payments to you after you have paid in monthly payments to an insurance company. Annuities come in the form of fixed and variable annuities. Consult with your financial advisor or CPA to ascertain whether this is an appropriate investment option for you.
3. TIPS - Treasury Inflation-Protected Securities - Offered by the U.S Treasury, these are securities that are indexed to the rate of inflation meaning your dividend will increase as the rate of inflation increases. A TIPS pays interest every six months and pays the principal upon maturity. Also a conservative investment, you may want to consider these if you are looking to preserve and protect capital from the ravages of inflation while providing a consistent and dependable income, but your money may not grow at the rate you would prefer - but then we aren't looking at capital appreciation anyway.
4. Mutual Funds (Income Funds) - As we are only considering sources of passive income, we are only going to look at income mutual funds. These may be called "growth and income" funds or "income" funds or "value" funds. Nearly every mutual fund family will have their own set of income or growth and income funds. Morningstar(TM) and other services provide third party ratings that you can use to identify the safest and highest paying income funds. Invest wisely and always consult a qualified investment advisor before investing. Mutual funds are also required to send you a prospectus (a formal disclosure of the funds fees, objectives and operating guidelines) for your review before you can invest. Review the prospectus carefully and consult with your financial advisor for terminology you may not understand.
5. Dividend Paying Stocks - This is perhaps the most familiar method of passive income. Anyone who knows anything about Wall Street knows that companies pay dividends to people who own their stock. Right? Well, most of the time. Many newer and smaller companies will use their income to grow the company instead of paying dividends and any company that incurs financial trouble may stop paying dividends. So if you are going to buy stock to acquire the income make sure the company has a track record of paying dividends. The best known American companies - commonly referred to as the "Blue Chips" are also the companies that traditionally have paid dividends most consistently. As with all other investments, research is necessary to capture the best dividends and target those companies with the most potential in future years.
6. REIT - Real Estate Investment Trust - One of my favorite investments because you own a portion of the real estate (or mortgages) the trust invests in. These also trade like a stock on the exchanges. An Equity REIT buys ownership (equity) in properties while a Mortgage REIT buys the mortgages on properties. Two key advantages to owning an REIT are the tax advantages and the liquidity of the security - you trade it just like a stock.
7. T-Bills, T-Bonds & T-Notes - Treasury Bills, Treasury Bonds and Treasury Notes - Considered to be the safest of all investments because they are issued by the United States Treasury Department, these vehicles are also among the lowest yielding. But you sacrifice yield for security whenever you invest. T-Bills, Bonds and Notes are most often purchased through your bank, broker or they may be purchased directly from the US Treasury Department through their Treasury Direct online service. Although you will not receive a high rate of return, the security of your investment cannot be any higher than it is with these investments.
8. Bonds - A bond can provide a secure and stable source of income for anyone. By definition, a bond is a debt issued by an authorized organization - often a corporation, municipality or utility. A bond sells for the issue price, matures (is paid back to you) at the principal (face amount or nominal price) and in between you collect interest that is called the coupon rate. Bonds are often purchased in the form of mutual fund bond funds. Some of these can be very lucrative with a yield exceeding that of equity funds but these are often hard to find.
9. Canadian Oil and Gas Trust - This is an organization that invests in oil and/or gas production and possibly mining in Canada. Several of these are now trading on the American (US) exchanges. Purchase is the same as purchasing a stock in any other company. Tax advantages are similar to those of an REIT and a big advantage - the one I like the most - is that some of these trusts pay ridiculously high dividends - and they pay monthly! My advice: do your research, find a Canadian Oil and Gas Trust you like and then invest as much as you can.
10. MLP - Master Limited Partnership - Want a limited partnership that you can sell or trade as easily as a stock? Enter the Master Limited Partnership. These hybrid organizations feature the limited liability of a partnership while enabling you to trade the partnership units - investment units - just as you would a stock. What could be better? A MLP offers distributable cash flow as well as income. A Master Limited Partnership must be researched and understood before a reasoned decision can be made regarding the purchase of a MLP for your investment portfolio.
11. Business Ownership - No, this isn't what you think. Owning a small business for most people is worse than working 9 to 5. In your own small business you get caught up in the details, trying to make the business go, searching for a market, dealing with customers; it quickly becomes more than a full-time job. That's OK if that's what you love to do. But, what we mean here is starting a business or franchise with the short term goal of handing it off to someone to run. The faster you can do this the better. If you can do it from the very beginning so much the better - the more time you free for yourself, the more time you will have to enjoy and/or create more passive income sources. A book that will help you is The E-Myth Revisited by Michael Gerber, another is The Four Hour Workweek by Timothy Ferris. Both of these books will help you structure your business ownership in a way that frees you from actually running the business yourself - margaritas on the beach anybody?
12. Tax Liens and Notes - A primary benefit of tax liens is the higher interest rate you receive on your investment plus the fact that your principal is backed by real estate. Please note that you will almost never receive the property from investing in tax deeds, liens or notes; the primary benefit is the favorable interest rate and the security resulting from a real estate backed transaction. Avoid organizations that suggest you will be receiving the property the tax instrument is against. Another benefit of this type of passive income is that you can invest online from almost any state in the country - be sure to review Texas tax deeds, interest can be as high as 50% annually in some cases.
13. Preferred Stock - A Preferred Stock is a security issued by a corporation that usually features a specific dividend rate. Preferred stock usually does not have voting rights except sometimes in extraordinary events. Preferred stock also receives priority over common stock holders when dividends are distributed - preferred stock holders must be paid first. And preferred stock holders also receive preference if the company is ever dissolved. As always, research thoroughly before investing.
14. Asset-Backed Securities - These investments are issued by corporations and are based on a pool of underlying assets. The cash flow from these assets provide the dividend payments made to the holders of the security. The asset pool can consist of almost any type of asset which provides a cash flow. Usually sold initially to a market maker type organization such as an investment bank, these securities may be resold to the general public by the broker. Contact your broker for more information on these types of investments.
15. Real Estate - Almost everyone knows - or at least is intuitively aware - that big money can be made from real estate. Real estate provides tax advantages as well as the opportunity to leverage your investment - leverage being a factor that is limited or absent in many other investments. Many real estate advisors and gurus insist that the one house at a time or the flipper strategy or fixer upper or wholesale method or other flavor of the month is the absolute best way to make money in real estate. But, these are generally not passive investments - you usually have to put a lot of time and hard work into such strategies.
Making big money passively in real estate is possible with highly leveraged deals which are a certainty only in commercial property. Multiple family properties, office buildings, retail facilities and warehouses would all constitute commercial property. Of these, the best strategy is to invest in multiple family properties. The bigger, the better. This requires knowledge and education more than it requires capital. Capital can always be acquired through your network, but knowledge is the one ingredient that will make this passive investment strategy work. And, with a big property, the income from that one property may be all you need to secure your retirement - today!
16. Unit Investment Trust - A Unit Investment Trust is one of three different types of investment companies, the others being a closed end fund and the familiar mutual fund. UIT's offer securities in the form of "units" that represent a unit of their investment portfolio. This portfolio is often an unmanaged portfolio consisting of stocks and bonds. Units are usually sold in amounts of $1,000 and investors or "unit holders" receive dividends from the units they hold. A unique feature of a UIT is its termination date. Unlike most other corporations and investment company organizations, which exist in perpetuity, a UIT has a defined termination date which is established upon inception. When this date arrives the UIT is terminated and the assets held are sold. The proceeds from this sale are then distributed to the unit holders.
17. Covered Calls - This is a passive investment instrument that is often considered risky. But it is not. A covered call is selling the option to buy stock that you own. You do not sell the stock, you only sell the option to buy that stock at a future price and time. The person buying the covered call buys the option at the price you agree upon - actually at which the market agrees upon - and you just set back and forget it. Well, not quite. The person who has bought the option has the right to buy your stock at any time between the time you sold the option and the expiration of that option. Writing (selling) a covered call is the only options investment that is considered safe enough by the IRS to be included in a 401K or other retirement plan. But you must do your homework and thoroughly understand the world of options before using this method.
18. Private Lending - Private lending has been around since people have been around. Essentially private lending is nothing more than lending out some of your excess cash to a trustworthy person who needs it. This has not always been easy or fruitful for the person who has had money they wanted to invest. As a result, several online services are now available that will accept your money and distribute it under your direction to those you feel are qualified; search for person to person lending or private lending on the major search engines to identify organizations you can use. The primary benefit of private lending is that the interest rates are often much higher than you would obtain by parking your money in a CD or bank, but the risks are much higher.
19. Music Publishing - You don't know about music publishing? The artist may get the glory (and often the money) but the publisher Always gets the money. If you own the rights to a song or sheet music you are the publisher and you get paid whenever that song is played or performed in public. Although the current rate is only 8 cents (US) per "performance" think of all the radio stations, bars and clubs in the country where your song may be being played right now. Yes, bars and restaurants must pay you whenever your song is played in their establishment. You don't have to worry about going around to each bar, hotel lobby or elevator or restaurant (More places!) in the country to collect your eight cents - this is handled by any one (or some combination) of just three organizations which pretty much manage all music throughout the world - ASCAP, BMI and for the internet SoundExchange. Yes, you do need to register with these organizations so they know where to send your checks, but this can be a very lucrative source of passive income.
20. Copyrights, Patents and Licenses - If you are an author you get paid every time a book of yours is sold. Ok, this is obvious, but you can also republish public domain material under a new copyright if you change it by at least 20% or add at least 20% more material to it. The easy part (some would say not easy) is the writing of the book itself. The hard part is getting other people to buy it, that involves marketing which is beyond the scope of this article, but if you can get a bestseller on your hands, the royalties (payments you receive from being the copyright holder) received can be very high.
A patent is an
innovation (process) or invention (thing). You get paid when the item
represented by the patent is used or sold by some other organization or the
public. The patent protects your right to exclusive ownership of that process
or invention for a certain amount of time.
A license is also possible to sell to the market. What if you know a particular process or procedure that no one else does? Can you sell this knowledge? Yes, you can. And the way to do it is to license an organization to use your knowledge in the form of a process or procedure. Check out inventright.com for a guide on how to do this.
Bonus
21. Movie & Other
Obscure Investments - We live in a dynamic world and there will always be
investment vehicles being conceived for a need. Also, more obscure investments
are available but generally are unknown outside of their particular industry.
Movie investments are one of these. Movies often need financiers ready to fund
the production of the movie project. When the movie is released to the public
and begins to make money the financiers receive their capital and return on
investment. This can be a good way to make a lot of money if you back a
blockbuster or a good way to lose a lot of money - look at how many movies do
poorly. Do not invest in this vehicle unless you thoroughly understand the risk
factors. RelativityMedia provides a means to invest in film production.
Other obscure
investments include exploration financing, water rights, coal leases, limited
partnerships, commercials and commercial funding (yes, tv commercials and
infomercials), receivables financing, sports team ownership, mining rights,
timber leases, taxi sub-leasing, master tenant, etc, etc, etc. If you have an
interest in investing in any of these areas you need to find someone with
excellent knowledge of the field and with a good track record in investing in
that industry. Consult with them intensely allowing them to guide your
investment decisions. Generally, the best policy is to invest only in those
areas where you are familiar and never, never invest more than you can afford
to lose.
22. Income Options - Income Options is a strategy. Generally, when you have a fuller understanding of the options industry and how it works, you can take a look at this strategy. The Income Options strategy is using call and put options in the same underlying stock to create a net credit spread. This credit is then applied to your account. Although there are several services that will manage this strategy for you, you need to fully understand this strategy prior to any investment in this vehicle.
Summary
Passive income investing is the key to securing income. Income is cash flow. Cash flow is king. You cannot invest future income or a projected return or an eventual equity position; you can only invest the cash you have on hand today. Likewise, you cannot pay bills or buy groceries or pay the mortgage or tax man with anything other than cash or credit. A projected return or equity position will not pay today’s bills or put food on the table. Capital appreciation is great - for tomorrow. I prefer cash in hand today. The more cash flow you have coming in now, the greater that tomorrow will be.
This article is provided for educational and informational purposes only and is not intended to provide financial, investment or legal advice. Obtain such advice only from a certified, licensed professional. Many of the aforementioned strategies are available only for "accredited investors." On an individual basis, an accredited investor is a natural person who has received an income of at least $200,000 in each of the previous two years ($300,000 if married) and expects the same this year and has a net worth of at least one million dollars.
Investing bears inherent risk. Never invest without obtaining competent advice from a licensed professional who understands your goals and your investment strategy and plans. Never invest more than you can afford to lose.
The author holds investments in one or more of the aforementioned vehicles.
22. Income Options - Income Options is a strategy. Generally, when you have a fuller understanding of the options industry and how it works, you can take a look at this strategy. The Income Options strategy is using call and put options in the same underlying stock to create a net credit spread. This credit is then applied to your account. Although there are several services that will manage this strategy for you, you need to fully understand this strategy prior to any investment in this vehicle.
Summary
Passive income investing is the key to securing income. Income is cash flow. Cash flow is king. You cannot invest future income or a projected return or an eventual equity position; you can only invest the cash you have on hand today. Likewise, you cannot pay bills or buy groceries or pay the mortgage or tax man with anything other than cash or credit. A projected return or equity position will not pay today’s bills or put food on the table. Capital appreciation is great - for tomorrow. I prefer cash in hand today. The more cash flow you have coming in now, the greater that tomorrow will be.
This article is provided for educational and informational purposes only and is not intended to provide financial, investment or legal advice. Obtain such advice only from a certified, licensed professional. Many of the aforementioned strategies are available only for "accredited investors." On an individual basis, an accredited investor is a natural person who has received an income of at least $200,000 in each of the previous two years ($300,000 if married) and expects the same this year and has a net worth of at least one million dollars.
Investing bears inherent risk. Never invest without obtaining competent advice from a licensed professional who understands your goals and your investment strategy and plans. Never invest more than you can afford to lose.
The author holds investments in one or more of the aforementioned vehicles.
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