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Tory Reiss Presents
Investment Alternatives
From BareNakedAssets
Alternatives?
❖ While the Stock Market is a good choice, some people may want to play outside the market. Some alternatives include…
❖ Real Estate
❖ Art and Collectibles
❖ Precious Metals
❖ Wine
Real Estate
❖ There are actually many ways to invest in real estate.
❖ Rental Property
❖ Real Estate Investment Trust (REIT)
❖ Notes
❖ Crowdfunding
Rental Property
❖ Straightforward, Traditional, and Simple
❖ Involved: Owner=Landlord
❖ You must invest time and resources into maintenance
❖ Some firms offer to do that for you, but be aware they can cut into profits.
REITs
❖ REIT (rhymes with “treat) is an acronym for “Real Estate Investment Trust”
❖ Less hands on than investing in a rental property
❖ Like a mutual fund, but investments are in real estate properties, not securities.
❖ Investor gets regular dividends
❖ Can be bought and sold on the public exchange
Notes
❖ Actual paper notes and mortgages. Just what it sounds like.
❖ Works like any other real estate property
❖ Brokers are available to help you with purchase
Crowdfunding
❖ Increasing in popularity
❖ Crowdfunding a project? Why not crowdfund an investment?
❖ Can be legally murky
❖ Loopholes have allowed online portals to connect interested investors
Art & Collectibles
❖ Intrinsic investment with (potentially) positive externalities
❖ Value is independent of Stock Market
❖ Low priced art can outperform higher priced pieces
❖ Biggest rule: make sure it’s something you like
❖ Not very liquid; could have it on your hands for a while
Precious Metals
❖ Think gold, silver, and the like
❖ Price of gold has been rising steadily
❖ Also independent of the stock market
❖ This does equal immunity from value fluctuations
Wine
❖ Solid (and tasty) investment
❖ Barriers to entry: Terminology, vernacular, and other details
❖ Great example of turning a hobby into an investment
❖ Returns can be high (as much as 6%-15% annually).
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