The secret to building wealth is to invest in assets that can generate income for you. The idea is to put your money to work for you so that you can earn more money. It makes sense to invest in physical assets, like property, land, machinery etc. Physical assets are tangible, and you can pay for them today so they can continue to generate money for you in the future. You can eventually have several income streams coming from different physical assets. There are many benefits that come from diversifying in this way.
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1. Rent or lease your physical asset
When looking for a high-reward source of income, rental units are a good option. You can choose to buy anything from a single-family home to a unit in an apartment building. Owning rental property comes with many responsibilities – marketing a listing, finding and screening tenants, maintenance and repairs. The idea that you can sit back and make passive income from a rental is a myth.
You may think it is too expensive to use property management services, but it could be more than worth your while if you want to make a good profit from rental units. They have the expertise to know how to market your rental property, find qualified tenants, maintain your property and handle all the day-to-day details. Evernest, APM and Keyrenter offer property management services in Denver and other areas in the U.S. They enable you to enjoy a steady and reliable return on your investment.
2. Use land for events or outdoor adventures
If you own a property and some land, you may be able to make money holding events. Check out first what activities may be restricted or require special permits. Don’t be put off by thinking you have to hold large events, such as a music festival. Small events such as farm tours or hayrides could be very popular and provide a good source of income. Bread-baking classes and “milk-the-cow” classes are some other innovative ideas to create income.
If you have an attractive outdoor area, you could rent it out for outdoor weddings. Outdoor weddings are popular in the summer and spring. It’s a great way to generate income while giving couples a day they will never forget. You must make sure there is enough parking available for guests and bathroom access.
You may be able to turn a field into a campsite. You will need to construct toilet and shower facilities. Check with local authorities about using sewage mains or installing a septic tank. Make sure the field is level and dry so campers can easily erect their tents. You can start small and invest any profits in making upgrades, such as installing electricity.
3. Use a physical asset for advertisements
If you have a large plot of land, you can consider offering companies the opportunity to place their billboards on it. A billboard is highly visible, and many companies use one for advertising purposes.
An advertisement on your car acts as a moving billboard. Businesses often use vehicles to increase the visibility of their businesses in a way that grabs attention. A vehicle wrap surrounds a whole car in a visual advertisement. This doesn’t damage the car and can work well for a business in a local market.
4. Offer training services from your home
Operating a home-based business has a number of advantages. You can keep your business overheads down and gain some tax advantages.
Companies are always looking for opportunities to offer training to employees. If you have a specialized set of business skills, you could offer training and help employees to enhance their skills. For example, you could offer training in areas like communication, time management, marketing and much more. These are soft skills employees need today to advance in their careers, and your experience could equip you to train them.
You could also offer home-based physical fitness training sessions to clients if you have a home gym or workout room. This could be yoga classes or any other type of fitness class you have the experience to provide.
Any area of expertise where you have qualifications or experience could provide a suitable topic for training. Providing training from your home could enable you to earn enough to pay your mortgage, have the capital for unexpected expenses and even for improvements. When you eventually sell your property, you could benefit from appreciation and improvements.
The fact that physical assets can serve as a non-traditional source of income is easy to overlook. Whether you rent out a property, rent out land for an outdoor wedding, use a car for advertising or offer training services from your home, there are many creative ways you can generate money from physical assets.