Thursday, April 28, 2016, PM | Leave Comment
A hands-off investment can be defined as an investment placed into a portfolio that does not need to be actively monitored or changed that often if at all. The advantage here is obvious.
Many busy people simply don’t have the time to actively manage their investments. Hands-off investments also have the added benefit of being known for producing steady streams of income.
There are certainly many people who could benefit from this kind of investment strategy.
Below are four common kinds of hands-off investments that you may want to give a try.
Self-Serve Car Wash
Another good passive business model that can supply you with continual income is purchasing or starting a car wash. However, this isn’t the kind of car wash you pay someone else to do by hand or the kind that you drive through that requires attendants. It is a self-serve car wash.
The customer parks their car in a spot designated for the car wash, inserts some money and is then supplied with spraying water and soap. The customer does the work, and you get paid for the passive service.
According to SBDCNet, the industry is expected to grow to $7.7 billion in a few years. However, the success of the industry is tied to disposable income. When people don’t have extra money, they tend to use their own garden hose or go without washing their car all together.
Another classic choice for making passive income is owning rental properties. You rent out the living space, and the tenant pays you rent. Being a landlord, however, does require some work. It’s also a business that requires some strategy.
Just because you open up apartments in a location does not mean you’ll suddenly be flooded with tenants willing to pay top dollar for your accommodations. Dealing with tenants, especially uncooperative ones, can also be a struggle in and of itself.
However, if you are successful at renting, it is certainly a business that can provide you with enough income to make you wealthy. The possibility of expanding your business is also there, especially if you are okay with designating some of the responsibility of managing your properties to others.
One excellent choice for those wishing to make a small investment that produces a steady stream of revenue is a vending machine. There are many different kinds of vending machines. This includes vending machines that dispense soda, snack foods, movies and more. There is pretty much no end to the kinds of products that can be dispensed by a vending machine.
If you find a good location, a vending machine can supply the owner with a steady stream of income for years. This can certainly add up since the products are sold at a significant mark-up.
Securing the best spots for your vending machines can be more difficult, as can finding vending machine parts if your units need repair. In certain cases, the property owner may want a commission for each item sold as well.
Lending is a traditional method of producing passive income. You lend money and make a profit off of the interest. However, you don’t have to be a bank to be a lender these days. One easy option now available is peer to peer lending or P2P lending for short. Websites like Lending Club can help facilitate these transactions for you.
The risk of course is that the borrower could default on the loan. However, if you diversify the loans you offer enough, say by offering many short loans to offset longer ones, you should be able to hedge most of the risk of one or two borrowers defaulting.
Consider these and other passive business options if you want to have a successful business without having to constantly manage the entire process. While there is still some work involved, you will certainly get much more free time than with other business investments.
Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.