Building Wealth Creative Strategies Revealed may sound weird for you. But after you finish to read this article you will be thinking differently. Because I revealed to you 5 creative strategies to build wealth outside of wall street and the stock market. We all know today in America the financial system is broken. The reason is simple the financial planning big corporation and the wealth management hedge fund corporate failed badly. You can spend the entire day talking about those issues endlessly. Let’s take a look briefly at some few of them rapidly.
Problem: Many people investors have a lot of funds available with limited possibilities of building wealth with that money in their lifetime. They are tired and they which a miracle to see the market’s performance taking over. I am talking about stocks, bonds, mutual funds, employer-backed 401k, Index fund portfolio including stocks, options, CDs, precious metals, etc. You know the game investment go up when the stock market goes up and vice versa with certainty. Nothing left than a lot of stress for you, your stomach swings and you will no longer be able to sleep at all.
The game is so unfair even when you try to play safe by keeping you in CD’s, money market account you can get rip off. Who’s the possibility of profit is not much than 1% interest return on investment per year? What put earning less money than the level of inflation in the market button line you lose time and money anyway.
Now let’s see what we have on hand as creative strategies for an alternative solution the complicate stock market system. But what I call Building Wealth creative solution strategies:
- Multi-Family Rental Apartments, Vacation homes, and Senior Facilities
Real estate emergent market always bring a great quick return on investment on a monthly basis. You can invest your money in homeownership rates to buy a rental boom multifamily apartment building. Keep it as your second property meaning your cash machine production every single month can be a great way to boost your finances rapidly.
Rental real estate investments will generate important returns. Plus any rise in equity; annually because rent price goes up each year caused by inflation. The great thing about it If you don’t want to manage tenants and handle maintenance yourself. I got you covered just hire a trustworthy property manager and with peace of mind starts generate income of your money.
Another way in this same strategy is to build equity. This technic goes like that very simple and easy to apply. You must purchase property in a real estate market with a strong interest in rentals and vacation homes. You can even use online portals while you in your bedroom to take the pulse of the real estate market. When you see the market is booming and the price is low and the numbers make sense for you pull the trigger and start buying to build wealth and turn on your rental cash machine on. This a payback/investment model that definitely works.
Commitment: Important remember you are building wealth and you definitely don’t want to lose money. On top your time you need to commit yourself to what you are doing because there is always a risk when you invest money.
Fund required: To start you will need minimum $15,000 to $100,000 and a good credit score as a down payment to obtain a mortgage of $ 500,000 up to $ 10,000, 000 for loan buy your first apartment building. You have to buy a 20 or more units rental apartment with a CAP Rate not less than 8.5 % the rest is piece of cake. The building equity will carry the mortgage because the tenant will pay it for you and you will start to cash out the return on your investment in the first-month form the rent money.
How can you do that: You need to do a profound self-research online looking for rental real estate apartment buildings and establish a good rapport with real estate broker. Preferred a one who specializes in rental properties with good access to financing mortgage loan for this avenue.
2. Commercial Real Estate Property strategy:
This strategy looks similar to the first one, but in this particular scenario, you’re chasing into facilities properties. I am talking about a 1, 2 or 3 stars hotel like Days Inn, Super 8, Econo Lodge, WYN, Holiday Inn or similar you can also pick a strip mall. In this case, the initial investment is more the prior one let’s say a significant one. I got you covered there too. Because I suggest you create venture capital with some potential partners who share the same ambition as you.
Make sure you see an attorney for legal advice to ensure you and your partner’s interest are clearly define and protected in this manner. For this strategy, you can eventually cap a return on your investment also bigger you can expect between 8.5% to 25% annually. Which is way more than what you can eventually expect from those single-family homes that pay you more than 1.5% to 4% return on investment?
Commitment: Important to remember you are building wealth and you definitely don’t want to lose money. On top your time you need to commit yourself to what you are doing because there is always a risk when you invest money.
Fund required: To start you will need minimum $250,000 to $1,000,000 and a good credit score as a down payment to obtain a mortgage of $ 2.5,000,000 up to $ 100,000,000 for a loan to buy your first hotel or strip mall. You have to buy a hotel or a strip mall with a CAP Rate not less than 8.5 % the rest is still a piece of cake. The real estate equity will carry the mortgage because the clients of the hotel and tenant from store lease at the strip mall will pay it for you and you will start to redraw interest on your investment at the first month as well.
How can you do that: You need to do a profound self-research online looking for 1, 2 or 3 stars hotel and strip mall and establish a good rapport with real estate broker. Preferred a one who specializes those type of deals with good access to financing mortgage loan for this avenue.
3. The Franchise Strategy:
Franchising is a building wealth creative strategy that been there for while and well known also. You can invest in a single franchise such as Sweet P. Home Care Agency, Jiffy Lube, Gas Station, 7 Eleven, Burger King, Mcdonalds, Subway, Dunkin’ Donuts, Lodomart and more. What is good in a franchise that is a proven system that already set up to grow every single year. You just need to hold your franchise and do the work you suppose to do and you probably will earn between annually 10% to 15% return on your investment.
The weak point of the franchising system if you just buy 1 or 2 franchise you will wait many years to generate a significant amount of income on your investment. The waiting time can be very frustrating sometimes depend on your personality. If you want to avoid it you will need to purchase more than 5 franchises to earn a 50% return on your investment minimum every year. First, do not forget to pay yourself a managerial check every month and hire a professional to manage them for you. When you do that you can focus on more deals and make sure your system is operating smoothly for you with no headache at all.
You can start a joint venture between many trusted partners also to buy a franchise, to raise more capital to buy a group of them in one shot. If you get excited by this strategy please start attending some franchising trade show in your area you may find them online every month.
Commitment: Important to remember you are building wealth and you definitely don’t want to lose money. On top your time you need to commit yourself to what you are doing because there is always a risk when you invest money. If you want to run your franchise yourself you will need a lot of time and you better focus on what you are doing.
Fund required: To start you will need a minimum $50,000 to $10,000,000 and a good credit score to start buying your franchises.
How can you do that: You need to do a profound self-research online attending franchising trading show or hire franchise consultant to do the job for you if you can afford it.
4. The strategy is raising capital through crowdfunding, social lending group, and peer-to-peer lending.
To Building Wealth you need capital and fund through crowdfunding, social lending group, and peer-to-peer lending can be a good fit for you. These type of capital access platforms are basically new and there are 95% operating online. There are allow borrowers to connect with a crowd amount of potential lenders with a huge trunk of capital available raising by a group from tiny investment from amateur investors. This avenue is powerful because instead of having to rejected by traditional banks for a financial institution. You can turn the borrowers who are amateurs sometimes, individual consumers or small businesses owners, and professional investors often too.
What makes this strategy important in people in the community where you invest the money you borrow from those platforms are living in the community and the will be proud to the consumers of your avenue of investment as well. That gives a bit a proud to know are also contribute to developing their own community, and they will protect it because is their own money too.
These type of platform targeting a return on investment starts with 8.5 % to 15% annually.
These platforms focus on lending money to small business, start-up companies, real estate investment venture capital project, real estate development for a rental apartment building. Like any other business you need you to seek for legal support before you get into it, sometimes credit cycles and changes and variation in the interest rate can be tricky. So be careful on what you about to sign in you need an attorney to take a look at it before you enroll yourself in these types of deals.
Guideline for this Strategy :
Setup processing: Require a short period of time and relatively easy to take place in the beginning.
Commitment: Important to remember you are building wealth and you definitely don’t want to lose money. On top your time you need to commit yourself to what you are doing because there is always a risk when you invest money. If you want to borrow money from one of these platforms you need to have a business plan clear define. A business strategy where you will invest this fund to allow you to generate enough earning income. Because you will have to pay back the loan capital plus interest and you need fund to keep running your business. Be Aware of what you are doing.
Fund required: $5,000 and more no credit needed.
How can you do that: sign up on different crowdfunding, social lending group, and peer-to-peer lending platforms and start prospecting for a loan. Eventually, you find an institution that fit your criteria for accepting borrow money from them.
5. Loans from relatives, family members, private money lenders or Alternative lending system strategy.
You can start building your wealth from other people money by getting to loans. Often people do not think that millions of dollars capital fund are available and waiting from them inside from own family relatives members, church and religious communities, the social club there are affiliating. Funds are everywhere if you ask you to find some from some retired individuals in your community, from some local business owner, some tired landlords and wealthy citizen that can be your millionaire neighbors and you do not know that at all.
Those people will be more than happy to lend you money to invest some business. But you gotta be honest and serious in what you are doing because you know you are dealing very sensitive and emotional people there. You can also find for yourself or give a loan to others for special investment or what they also call specialty finance products. Here I am talking about lucrative sector such as real estate, commercial loans, for 6%-20% return on investment flat.
This aspect of this particular strategy requires a short time and not much energy than buying and managing physical investments. You borrow or become a private money lender depend on where are sitting in the equation may be you need money to invest in the business venture. Otherwise, you may have money sitting there doing nothing you lend it to other for a good return on your investment. This strategy works in both ways.
Guideline for this Strategy :
Setup processing: Require a short period of time and relatively easy to take place in the beginning.
Commitment: Important to remember you are and you definitely don’t want to lose money. On top your time you need to commit yourself to what you are doing because there is always a risk when you invest money. If you want to borrow or lend money to friends, relatives, sublimes, people from your community, your religious congregation, you got to be serious and ready payback your loan no matter what happened. To keep your reputation intact and your name clear. But there is a sweet part of this strategy. If you doing good and succeed with those people they will lend or borrow only to you because of your positive track record in the community. You can operate will a lot fund available with no competition and rapidly building wealthy along the years.
Fund required: $5,000 and more no credit needed and some group of people with a couple of thousands of dollars to doing business with you.
To end this article let tell you straight is not difficult at all. You just need to be creative, taking action with persistence plus discipline and success in on your way you not necessary need wall street of the stock market to succeed financially.