Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

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Topic Author
MrCheapo
Posts: 165
Joined: Tue Dec 22, 2020 3:43 pm

Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by MrCheapo »

Hi

Mutual funds and stocks have done well for me. But I was thinking about investing outside of them to diversify. Suggestions?

Investment properties are always an option and I've had a few.

Any other suggestions? Perhaps break them down into passive (i.e. silent investor providing capital on a store) or active.
runner3081
Posts: 4200
Joined: Mon Aug 22, 2016 3:22 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by runner3081 »

-Cars
-Baseball Cards
-Non-Sports Cards
-Art
-NFT's
-Crypto Currency
-Peer to Peer Lending
-Professional Sports Franchises
Wabbit
Posts: 161
Joined: Fri Feb 06, 2009 4:12 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by Wabbit »

- Commodities (CCFs)
- Farmland
- Timber

There are many topics on bogleheads on these and more. Note that alternatives will likely have higher fees and less liquidity.
suemarkp
Posts: 526
Joined: Sun Nov 12, 2017 8:18 pm
Location: Somewhere in WA State

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by suemarkp »

Precious metals (physically holding them or using the Kitco Pool).
Mark | Somewhere in WA State
oldmotos
Posts: 121
Joined: Fri Aug 04, 2017 9:37 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by oldmotos »

I have enjoyed and profited from many non-traditional investments over the past 20 years.

Real Estate Development: Partnered with two contractor friends to build storage condo projects locally and in two nearby towns. We sold all the units and made a good profit. Probably should have done more projects but we were all busy with our main jobs.

Partnered with 7 friends to buy a local restaurant that was struggling but had a great remodeled building at a good price. We found someone to lease it and they paid the rent for four years until we were able to sell at a profit to someone with the experience and money to take it to the next level.

I joined a group of 2 dozen local investors to build a 41 room, 3.5 million hotel. It is doing well although COVID has hurt over the last year. I could sell my share at a small profit and have received some good tax write-offs. I get a weekly report on the performance and it has been interesting to learn about a new business.

I bought 3 adjacent commercial properties with two partners and later sold as a package to a hotel investment group. I was able to move the best building 1 block away and now rent it to a manufacturing company.

I invested in a small manufacturing company located 200 miles away and moved it to my town. I found out about the opportunity through a friend after dozens of others had passed on it. I ended up owning a majority stake and it is doing well. It is run by the one other partner and I only spend an hour or two a week on it except when something special is happening. This investment had some risk but not that bad as I had a lien on the business assets when I first invested.

I have bought vacant lots at auction on my own and with partners and sold within a year or two. Many buyers are not comfortable or are unable to buy at auction. Once we sold the lot within 1 day after buying.

Invested in a local small start-up brewery. No profits yet but I have enjoyed the free beer!

I have bought several downtown retail/office buildings at good prices and have been able to keep them rented and have improved their appearance.

All of these investments have helped our small town which I find rewarding. They have also been interesting and profitable. I probably work more than a retired guy should but can do it on my terms and schedule.
investuntilimrich
Posts: 65
Joined: Thu Jan 21, 2021 2:33 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by investuntilimrich »

Depends on how much you want to invest. Many things require a certain minimum of either time, expertise, or money. Some might require all three. The learning curve can be steep on some things, and unless you've been following something for a long time it can be hard to understand the trends and nuances. Physical assets carry concerns about damage, theft, space, and eventually delivery to the purchasing party and their approval of the received items. Some things are fun to be involved in, but the volume isn't high enough to make the spread between cost and sale price justified. I've really been surprised at some of the things people will continue to do despite very low profits, so be skeptical of claims until you've worked out all the math for yourself.


The only thing I've tried that I will do again is real estate, but not while people are paying asking price for distressed homes. I'll get back in when I'm the only reasonable offer on a foreclosure.
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galawdawg
Posts: 2368
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by galawdawg »

You recently posted a couple of threads about whether to retire now or in five (5) years and opined that you felt you needed to keep working, despite your lack of motivation, "in case" you had significant medical or elder care expenses after retirement as you don't want to burden your family. This despite having more than enough to retire now.

May I suggest that such an approach, when it appears you have more than enough to retire now, indicates that you are very conservative in your financial affairs and as such, many of these "non-traditional" investments may not be well-suited for you? As one approaches retirement, it is generally recommended that they become more conservative in their investments and asset allocation, not less. Based upon some of the comments you have made in your other threads, I'm not sure that taking on additional risk at this point in your life would be a wise decision. Since mutual funds and stocks have done well for you, I'd recommend that you stick with that approach.

But that is just my opinion, others will likely disagree! 8-)
Volando
Posts: 63
Joined: Tue Feb 23, 2021 7:52 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by Volando »

oldmotos wrote: Fri May 14, 2021 4:11 pm I have enjoyed and profited from many non-traditional investments over the past 20 years.

Real Estate Development: Partnered with two contractor friends to build storage condo projects locally and in two nearby towns. We sold all the units and made a good profit. Probably should have done more projects but we were all busy with our main jobs.

Partnered with 7 friends to buy a local restaurant that was struggling but had a great remodeled building at a good price. We found someone to lease it and they paid the rent for four years until we were able to sell at a profit to someone with the experience and money to take it to the next level.

I joined a group of 2 dozen local investors to build a 41 room, 3.5 million hotel. It is doing well although COVID has hurt over the last year. I could sell my share at a small profit and have received some good tax write-offs. I get a weekly report on the performance and it has been interesting to learn about a new business.

I bought 3 adjacent commercial properties with two partners and later sold as a package to a hotel investment group. I was able to move the best building 1 block away and now rent it to a manufacturing company.

I invested in a small manufacturing company located 200 miles away and moved it to my town. I found out about the opportunity through a friend after dozens of others had passed on it. I ended up owning a majority stake and it is doing well. It is run by the one other partner and I only spend an hour or two a week on it except when something special is happening. This investment had some risk but not that bad as I had a lien on the business assets when I first invested.

I have bought vacant lots at auction on my own and with partners and sold within a year or two. Many buyers are not comfortable or are unable to buy at auction. Once we sold the lot within 1 day after buying.

Invested in a local small start-up brewery. No profits yet but I have enjoyed the free beer!

I have bought several downtown retail/office buildings at good prices and have been able to keep them rented and have improved their appearance.

All of these investments have helped our small town which I find rewarding. They have also been interesting and profitable. I probably work more than a retired guy should but can do it on my terms and schedule.
This all sounds really interesting. Do you mind if I ask you how you learned about making these types of investments? Were you already a business person or did you learn as you go, read books, etc?

I’m not involved in anything beyond my own career but I’d love to eventually expand into investing into these types of businesses.
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JonL
Posts: 48
Joined: Sat May 18, 2013 1:56 am
Location: San Diego, CA

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by JonL »

MrCheapo wrote: Fri May 14, 2021 12:55 pm
Investment properties are always an option and I've had a few.
I approach real estate the same way I approach stock market investing.

I know that it's a risky venture. I know keeping costs low is critical to success. I know that hiring a manager to pick real estate for me is a loser's game - just as it is with stocks. And I know I need to diversify.

Yet, unlike stocks, I can't scoop up a low-cost diversified index fund of direct real estate. And, since hiring a middleman will simply light money on fire, I know that I must do the work myself.

Said again - for me, successful real estate investing comes with doing the hard work of locating the right investment properties, hiring the right property managers and contractors. It's just like stock picking. But, instead of evaluating companies, it's evaluating buildings and people. Once I've found a team, I look at properties to determine the potential costs and potential profits. I look at quite a few properties that won't fit my goals. That's part of the game. It takes time.

I couldn't imagine outsourcing this process to someone else as much as I could imagine purchasing a mutual fund charging 1%.

Said simply, successful real estate investing is a lot of work!!

I hope that helps!
Topic Author
MrCheapo
Posts: 165
Joined: Tue Dec 22, 2020 3:43 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by MrCheapo »

Wow! Thank you for sharing. All I think is you must be rich beyond just money. Congratulations, you've set a bar for all of us to aim for.
oldmotos wrote: Fri May 14, 2021 4:11 pm I have enjoyed and profited from many non-traditional investments over the past 20 years.

Real Estate Development: Partnered with two contractor friends to build storage condo projects locally and in two nearby towns. We sold all the units and made a good profit. Probably should have done more projects but we were all busy with our main jobs.

Partnered with 7 friends to buy a local restaurant that was struggling but had a great remodeled building at a good price. We found someone to lease it and they paid the rent for four years until we were able to sell at a profit to someone with the experience and money to take it to the next level.

I joined a group of 2 dozen local investors to build a 41 room, 3.5 million hotel. It is doing well although COVID has hurt over the last year. I could sell my share at a small profit and have received some good tax write-offs. I get a weekly report on the performance and it has been interesting to learn about a new business.

I bought 3 adjacent commercial properties with two partners and later sold as a package to a hotel investment group. I was able to move the best building 1 block away and now rent it to a manufacturing company.

I invested in a small manufacturing company located 200 miles away and moved it to my town. I found out about the opportunity through a friend after dozens of others had passed on it. I ended up owning a majority stake and it is doing well. It is run by the one other partner and I only spend an hour or two a week on it except when something special is happening. This investment had some risk but not that bad as I had a lien on the business assets when I first invested.

I have bought vacant lots at auction on my own and with partners and sold within a year or two. Many buyers are not comfortable or are unable to buy at auction. Once we sold the lot within 1 day after buying.

Invested in a local small start-up brewery. No profits yet but I have enjoyed the free beer!

I have bought several downtown retail/office buildings at good prices and have been able to keep them rented and have improved their appearance.

All of these investments have helped our small town which I find rewarding. They have also been interesting and profitable. I probably work more than a retired guy should but can do it on my terms and schedule.
Irenaeus
Posts: 118
Joined: Wed Sep 21, 2011 2:06 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by Irenaeus »

Emu - it’s the pork of the future.
oldmotos
Posts: 121
Joined: Fri Aug 04, 2017 9:37 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by oldmotos »

Volando wrote: Sat May 15, 2021 10:25 am
oldmotos wrote: Fri May 14, 2021 4:11 pm I have enjoyed and profited from many non-traditional investments over the past 20 years.

Real Estate Development: Partnered with two contractor friends to build storage condo projects locally and in two nearby towns. We sold all the units and made a good profit. Probably should have done more projects but we were all busy with our main jobs.

Partnered with 7 friends to buy a local restaurant that was struggling but had a great remodeled building at a good price. We found someone to lease it and they paid the rent for four years until we were able to sell at a profit to someone with the experience and money to take it to the next level.

I joined a group of 2 dozen local investors to build a 41 room, 3.5 million hotel. It is doing well although COVID has hurt over the last year. I could sell my share at a small profit and have received some good tax write-offs. I get a weekly report on the performance and it has been interesting to learn about a new business.

I bought 3 adjacent commercial properties with two partners and later sold as a package to a hotel investment group. I was able to move the best building 1 block away and now rent it to a manufacturing company.

I invested in a small manufacturing company located 200 miles away and moved it to my town. I found out about the opportunity through a friend after dozens of others had passed on it. I ended up owning a majority stake and it is doing well. It is run by the one other partner and I only spend an hour or two a week on it except when something special is happening. This investment had some risk but not that bad as I had a lien on the business assets when I first invested.

I have bought vacant lots at auction on my own and with partners and sold within a year or two. Many buyers are not comfortable or are unable to buy at auction. Once we sold the lot within 1 day after buying.

Invested in a local small start-up brewery. No profits yet but I have enjoyed the free beer!

I have bought several downtown retail/office buildings at good prices and have been able to keep them rented and have improved their appearance.

All of these investments have helped our small town which I find rewarding. They have also been interesting and profitable. I probably work more than a retired guy should but can do it on my terms and schedule.
This all sounds really interesting. Do you mind if I ask you how you learned about making these types of investments? Were you already a business person or did you learn as you go, read books, etc?

I’m not involved in anything beyond my own career but I’d love to eventually expand into investing into these types of businesses.
I was always interested in business and just kept my eye out for opportunities. I worked for the same company for 45 years but always had side investments. I lived in a smaller town most all my life and knew lots of hard working people with an entrepreneurial spirit. Most of my investments were not that large and did not change my lifestyle but all together they did add up. The manufacturing business was the largest and riskiest but fortunately it has worked out. I was not actively looking for that type of business but heard about it from a friend and it looked interesting. It was a 25 year old business that had several problems and was shut down for a year but still had some good assets and a good plan to restart.

One thing that works for me is to look for new ideas that have not made it to my area. I read about storage condos 20 years ago when they were just becoming popular elsewhere and we decided to give it a try. We pre-sold most of the condos so there was very little risk. I found my partners while discussing the idea in the local tavern although I already knew them.

The hotel investment was a well known opportunity as the local economic development group was advertising looking for investors. One of the downtown buildings I bought was from an older businessman who was looking for someone to buy his building and rent it back to him. Many investors turned him down but I thought it looked like a good investment after some negotiations. Time will tell.

I guess the key for me is to not overpay so even if things do not go just right I still come out ok. Good Luck!
investuntilimrich
Posts: 65
Joined: Thu Jan 21, 2021 2:33 pm

Re: Thinking Outside the Box - Other ways to invest outside of investing in Mutual Funds and Stocks

Post by investuntilimrich »

I have one idea, start a vlog about how to get rich that drives traffic to your course and affiliate links. Make sure to do a photo-op of you flying your copter and lots of pics of you next to a rented mansion and lambo. I am just joking, but I feel like many advertisements I've seen fit this pattern.
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