Most people are aware of the major investment asset classes. You have stocks, bonds, gold, real estate, etc. But did you know that there are dozens of other investment categories? And some of them are downright strange.
6 Unusual Investments
Traditionally, the key to successful investing has been the access to information. Successful traders rely on stock APIs to grab real-time ticker information from the major markets so they can make informed decisions on what and when to buy/sell.
In the world of real estate, it’s all about having inside connections so you can seize high-ROI opportunities before the rest of the marketplace comes around.
No matter the asset class, the struggle is real. But the good news is that you don’t have to stick with the basic asset classes. You can supplement and diversify with unusual investments, such as the following.
- Peer-to-Peer Lending
Not everyone qualifies for a loan from a traditional bank or lender. This might be due to bad credit history or a purchase that doesn’t fit underwriting stipulations. Either way, it leaves a gaping void in the marketplace – a void that’s worth millions of dollars. One solution is peer-to-peer (P2P) lending, which allows individuals – like you – to lend money at a set interest rate. Here’s a list of some reputable P2P sites.
- Sports Memorabilia
All those baseball cards or Olympic pins that you collected back when you were a child? They might be worth something. In fact, sports memorabilia holds its value better than almost any asset on this list. This is especially true with memorabilia that has a limited quantity – like a Michael Jordan rookie card or an autograph from Muhammed Ali.
- Second Life Assets
Second Life is a video game where players create their own avatar, interact with other users, and engage in everyday actions and activities. As the name indicates, it’s designed like a video game version of real life. And much like real life, there’s a potential for investing in real estate. One individual, who would be the equivalent of a real estate investor in the game, actually made $1 million in real cash by selling property.
Vintage wines are, by their very nature, scarce. And any time you have a scarce product that ages well and has a loyal following, there’s potential for a high-returning investment. The key with wine investments is to protect the investment. (And to avoid drinking it!) This means having the right climate-controlled space to store it.
- Silent Business Ownership
Most people know they can invest in equity stakes of private businesses, but may hold off doing so because they don’t have the expertise needed to push the business forward. But what if you could invest in percentage stakes of companies without having to touch anything on the operational front? Well, you can. It’s called silent business ownership.
As entrepreneur Eric Dontigney explains, “Silent investors provide capital to a business for a return on the investment. The investor may receive stock in the company and may also enter into an agreement that gives the investor a percentage of revenue or profit. The business owner and the investor must come to an agreement on how the investor will receive compensation for the investment.”
The amount of cash you’ll need to invest as a silent investor will depend on the type of business and what the ownership is looking for. You might find a small cash-strapped company that’s willing to part with a large amount of equity in return for a small upfront investment. However, you’ll need to do your due diligence to find these opportunities.
- Music Royalties
Did you know that some musical artists actually sell their songs? This allows you to earn royalties on the music indefinitely. (You continue receiving royalties on the song until the copyright ends, which is usually 95 years after the artist passes away.) Now that’s what you call a passive income stream for life!
How Well Are You Diversified?
After reviewing this list of unusual investments, you’re probably second-guessing the diversification of your portfolio. And while we don’t necessarily recommend buying real estate on Second Life, there is something to be said for thinking outside the box. Explore any and all options and you never know what you’ll uncover!