BusinessHABBest Easy Asset to Buy & Sell: Whether you just want to sell unneeded property to raise cash for your business.
Or are closing your business entirely and liquidating all assets.
The process is generally the same – although if you’re closing your business.
You’ll have other steps to complete after your assets are gone.
To sell business assets, identify the items you want to sell, assess their value.
And find buyers who hopefully are willing to give you at least fair market value for your property.
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Best Easy Asset to Buy & Sell
Income producing assets are widely-sought vehicles for wealth creation.
They are purchased by investors of all ages, places, experience levels and backgrounds.
And they might be right for you, too.
This article will take a deep dive into the subject.
We will assess their features, risk profiles, frequencies of payment and frequently asked questions about them.
We’ll also explore more of the most popular options.
If you prefer not to read through almost these words, you can also skip right to the following list of income producing assets.
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Best Easy Asset to Buy & Sell
1. Dividend Paying Stocks
Currently, my favorite index fund, Vanguard’s VTSAX, is paying dividends at a little less than 2%, due to the market’s historically high prices and growth of many large technology stocks, which aren’t currently paying dividends.
2. Peer to Peer Lending
As in investor, you’re playing the role of “bank” by providing your money to a consumer. In exchange for lending out your money, the consumer pays you interest (through an SEC regulated intermediary, like Lending Club).
Best Easy Asset to Buy & Sell
3. Interest Paying Bonds
Interest rates obviously vary significantly, depending on your type of bond and the current interest rate environment. But in general, you can expect bonds to yield anywhere from 1-4%.
Investors typically enjoy bonds for the stability of their fixed payments and the stability of the underlying price of the bond itself. While stocks tend to fluctuate wildly in price, the price of bonds is much more stable by comparison.
4. Certificate of Deposits (CDs)
In today’s low interest rate environment, you’re lucky to find a CD paying any more than about 2%. And while you might not even beat inflation at those rates, CDs are FDIC insured up to $250,000, so they’re risk free.
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Best Easy Asset to Buy & Sell
5. Savings Accounts or Money Market Savings Accounts
Probably the most basic income producing asset in the world, and also one of the least profitable.
While these two both pay slightly higher interest rates than a regular ‘ole checking account, you’re still gonna be hard pressed to make any meaningful income from these ultra-safe choices.
Unfortunately, most people never get past this stage in their investment journey. Of course, we’re just getting started…
6. Peer to Peer Lending
Mr. Money Mustache ran a five-year Lending Club experiment on his blog. He earned 13% for several years before experiencing a decline in performance down to 7%, causing him to withdraw his money.
7. Single Family Rental Houses
The single family rental carries the advantage of easier management. With less tenants, less appliances, and overall, less things to break, single family properties can have less headaches.
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Best Easy Asset to Buy & Sell
8. Multi-family Rental Properties (Duplexes, Triplexes, and Quads)
Of course, like any investment, multi-family properties aren’t perfect. For one, there’s a smaller supply of them, and typically, the only buyers interested are other investors, which can make finding a good deal much more difficult. They also carry more risk – they usually cost more money, require larger initial capital outlays, and you’re more exposed to location related risks when you have multiple rentals at one address, rather than spread across several locations.
9. Tycoon Status – Apartment buildings
This is where things get interesting. With large apartment buildings, small changes to operational efficiency can create big changes to the bottom line, and a savvy manager can leverage this scale to create a well-oiled cash flowing machine.
10. Slumlord status – Trailer Parks
With the ability to squeeze so many lots on a single property, rental prices per lot are relatively low to the property’s overall value, which lets you adopt the property manager approach, similar to apartments. You supply a free lot to an onsite property manager so long as they deal with the dirty work, turning this potential headache into a surprisingly passive income producing asset.
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Best Easy Asset to Buy & Sell
11. Short Term Rentals
Of course, this comes with the added maintenance, wear and tear, and hospitality needed for managing lots of different customers, but the rewards can certainly pay off. On the other hand, investors like Zeona McIntyre have successfully used short term rentals to build up a rental empire
and reach early financial freedom. Like any investment worth it’s weight in risk, your mileage may vary!
12. Vacation Rentals
This irresistible idea of owning a slice of luxury usually causes vacation properties to sell at a really high premium and carry some heavy ongoing operating costs. This might be fine for the rich dude willing to pay for his dream getaway, but it puts a real squeeze on the investor looking for an income producing asset.
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Best Easy Asset to Buy & Sell
13. Real Estate Investment Trusts (REITs)
Want to get really crazy with it? You could buy REITs using 20% of your own money and 80% borrowed money. This approach does a decent job replicating the same leverage experienced when buying a rental property with a 20% downpayment.
Around this time, it’s important to remember the gold rule of finance – there’s no such thing as increased returns without increased risk.
14. Farmland
Renting farmland can provide your portfolio with some strong diversification, since agricultural boom-bust cycles tend to have very low correlation from what us city slickers consider to be the “regular” economy.
And while farming is certainly a tough job, the agricultural industry receives strong support from several federal government programs, which could help protect your rental incomes more than other real estate investments.
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Best Easy Asset to Buy & Sell
15. Timberland
Want to double down? Certain trees, like walnut or chestnut, can start producing nuts after 3-10 years, and these nuts can be sold to generate additional income. Other producers double crop their timberland (planting trees far enough apart to grow other crops in between) or allow livestock to graze on the land for yet another income source.
The best part? Trees keep growing, rain or shine, and so does their value. In total, timber typically increases in value by 2-14% per year, with taxes deferred until harvest.
16. Basic, boring businesses.
Just like with the stock market, investing directly into boring businesses tends to be surprisingly profitable.
If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
Best Easy Asset to Buy & Sell
17. Franchises
Your return for investing that sort of cash? Well, you’d need to request an investor package to know for sure.
18. Websites
You’ll need some technical know-how to keep from running your newly purchased online company into the ground. And if this blog has taught me anything, it’s that even running an online diary is way more work than you’d ever expect. But the fact remains, websites can be low overhead, profitable businesses, and the space remains under utilized for many investors.
19. Royalties
Royalties come in many shapes and forms, but music royalties are the most common. Music royalties are payments made to a song’s copyright owner for the right to use.
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20. Commodities
Commodities are physical products that you can invest in. They are common in futures markets where producers and commercial buyers – in other words, professionals – seek to hedge their financial stake in the commodities. Retail investors should make sure they thoroughly understand futures before investing in them. Partly, that’s because commodities investing runs the risk that the price of a commodity will move sharply and abruptly in either direction due to sudden events. For instance, political actions can greatly change the value of something like oil, while weather can impact the value of agricultural products.
Best Easy Asset to Buy & Sell
21. Cryptocurrencies
Cryptocurrencies are a fairly new investment option. Bitcoin is the most famous cryptocurrency, but there are countless others, such as Litecoin and Ethereum. Cryptocurrencies are digital currencies that don’t have any government backing. You can buy and sell them on cryptocurrency exchanges. Some retailers will even let you make purchases with them.
Cryptos often have wild fluctuations, making them a very risky investment.
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22. Annuities
Many people use annuities as part of their retirement savings plan. When you buy an annuity, you purchase an insurance policy and, in return, you get periodic payments.
Annuities come in numerous varieties. They may last until death or only for a predetermined period of time. The may require periodic premium payments or just one up-front payment. They may be linked partially to the stock market or they may simply be an insurance policy with no direct link to the markets. Payments may be immediate or deferred to a specified date. They may be fixed or variable.
While annuities are fairly low risk, they aren’t high-growth. They make a good supplement to retirement savings, rather than an integral source of funding.
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Best Easy Asset to Buy & Sell
23. Options
An option is a somewhat more complicated way to buy a stock. When you buy an option, you’re purchasing the ability to buy or sell an asset at a certain price at a given time. There are two types of options: call options, for buying assets, and put options, for selling options.
The risk of an option is that the stock will decrease in value. If the stock decreases from its initial price, you lose your money. Options are an advanced investing technique, and retail should exercise caution before using them.
24. Retirement Plans
There are a number of types of retirement plans. Workplace retirement plans, sponsored by your employer, include 401(k) plans and 403(b) plans. If you don’t have access to a retirement plan, you could get an individual retirement plan (IRA), of either the traditional or Roth variety.
Retirement plans aren’t a separate category of investment, per se, but a vehicle for making investments, including purchasing stocks, bonds and funds, that exempt you from taxes in one of two ways: either letting you invest pretax dollars (as with a tradition IRA) or allowing you to withdraw money without paying taxes on that money. The risks for the investments are the same as if you were buying the investments outside of a retirement plan.
Best Easy Asset to Buy & Sell
25. Exchange-Traded Funds
Exchange-traded funds (ETFs) are similar to mutual funds in that they are a collection of investments that tracks a market index. Unlike mutual funds, which are purchased through a fund company, shares of ETFs are bought and sold on the stock markets. Their price fluctuates throughout the trading day, whereas mutual funds’ value is simply the net asset value of your investments, which is calculated at the end of each trading session.
ETFs are often recommended to new investors because they’re more diversified than individual stocks. You can further minimize risk by choosing an ETF that tracks a broad index.
Stocks, also known as shares or equities, may be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership stake in a publicly traded company. Many of the biggest companies in the country — think General Motors, Apple and Facebook — are publicly traded, meaning you can buy stock in them.
When you buy a stock, you’re hoping that the price will go up so you can then sell it for a profit. The risk, of course, is that the price of the stock could go down, in which case you’d lose money.
Brokers sell stocks to investors. You can either opt for an online brokerage firm or work face-to-face with a broker.
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Best Easy Asset to Buy & Sell
27. Bonds
When you buy a bond, you’re essentially lending money to an entity. Generally, this is a business or a government entity. Companies issue corporate bonds, whereas local governments issue municipal bonds. The U.S. Treasury issues Treasury bonds, notes and bills, all of which are debt instruments that investors buy.
While the money is being lent, the lender gets interest payments. After the bond matures — that is, you’ve held it for the contractually determined amount of time — you get your principal back.
The rate of return for bonds is typically much lower than it is for stocks, but bonds also tend to be lower risk. There is some risk involved, of course. The company you buy a bond from could fold, or the government could default. Treasury bonds, notes and bills, however, are considered a very safe investments.
28. Mutual Funds
A mutual fund is a pool of many investors’ money that is invested broadly in a number of companies. Mutual funds can be actively managed or passively managed. An actively managed fund has a fund manager who picks securities in which to put investors’ money. Fund managers often try to beat a designated market index by choosing investments that will outperform such an index. A passively managed fund, also known as an index fund, simply tracks a major stock market index like the Dow Jones Industrial Average or the S&P 500. Mutual funds can invest in a broad array of securities: equities, bonds, commodities, currencies and derivatives.
Mutual funds carry many of the same risks as stocks and bonds, depending on what they are invested in. The risk is often lesser, though, because the investments are inherently diversified.
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Best Easy Asset to Buy & Sell
29. Certificates of Deposit
A certificate of deposit (CD) is a very low-risk investment. You give a bank a certain amount of money for a predetermined amount of time. When that time period is over, you get your principal back, plus a predetermined amount of interest. The longer the loan period, the higher your interest rate.
There are no major risks to CDs. They are FDIC-insured up to $250,000, which would cover your money even if your bank were to collapse. That said, you have to make sure you won’t need the money during the term of the CD, as there are major penalties for early withdrawals.
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30. P2P lending
You can reinvest the income generated from your investments into more revenue producing assets.
This allows you to harness the power of compounding returns.
Income producing assets are often relatively predictable.
Unlike speculative investments, such as small-cap stocks or cryptocurrencies.
You can identify ones that will likely create revenue for the foreseeable future.
You don’t need to guess or “play the markets.”
BusinessHAB