Business owners often count on their businesses almost exclusively to secure ongoing revenue and plan for the future. They might plan to sell the business eventually, using the money to fund their retirement, or might imagine working for the company indefinitely, with a consistent line of income for the foreseeable future. However, it’s a good idea to have a secondary line of income—even if you’re confident in your business.
A second line of income will serve as a backup plan, giving you a steady stream of revenue even if your business falls on hard times, or if you decide to leave prematurely. This way, you won’t have to scramble to find something to replace your main plan. More than that, a second line of income will increase your total income, accelerating your retirement plan and giving you more options for the future.
Among your options for a second line of income, investing in real estate is one of the most reliable.
The Real Estate Advantage
There are a few distinct advantages business owners receive when investing in real estate for a second line of income:
- Flexibility and possibilities. There are many different ways to get involved in real estate investing, and all of them have the potential to earn you more money. If you feel like doing the work and you have the expertise, you could potentially look for low-cost properties to flip. If you’re interested in long-term growth, you could focus on properties in neighborhoods with a high potential of flourishing in the future. Of course, if you’re after a consistent monthly income, you could also seek properties with high rent potential; you’ll need a guide like this to help you calculate effective gross income, but assuming your numbers check out, you can usually count on a small monthly profit (and plenty of cash to keep up with your loan).
- Rental income and cash flow. One of the most advantages real estate investing strategies is investing in rental properties. With consistent tenants, you can often count on monthly income to cover all the expenses associated with property ownership, with a bit left over. This can help supplement your business income in the short-term, and when you’re ready to retire, you can sell the property altogether.
- Hands-off nature. While being a landlord is time intensive in some regards, for the most part, real estate investing is a hands-off strategy. You’ll have to take action when a property needs repairs or when a tenant isn’t paying rent, but most of the time, you won’t have to do anything. And if you hire a property management firm or an individual property manager, you’ll have even fewer personal responsibilities—so this won’t interfere with your primary business.
- Scalability. Real estate investing is also something that’s easily scalable. Most new real estate investors start with one property, often a single-family or multi-family home. Once they gain more experience and save more cash, they can afford to add another property to their portfolio, then another. There’s no upper limit here, enabling you to purchase major apartment complexes or other high-profile investments if they serve your goals and needs.
- Fixed assets. Real estate properties are fixed assets that exist in the physical world, and they exist in a finite supply. They have a long history of pricing stability, with a trajectory that makes them more valuable over time (especially in good, flourishing neighborhoods). This gives you more control and more reliability than other investment options.
- Selling options. At any point, you can sell your property and raise funds from the sale. While real estate properties aren’t as liquid as, say, a savings account, you can generally count on finding a buyer within a few weeks to a few months (assuming you’re listing at a fair price). This gives you a ton of flexibility—if you need extra cash for your business, you can sell a property to cover it. If you decide real estate investing isn’t for you, you can pull out.
If you’re interested in getting more exposure to the real estate market, there are a few things you’ll need to do first. For starters, you’ll want to run a current assessment of your financial strategy and risk profile to make sure you can tolerate the risks associated with real estate investing. If you’re completely new to the market, it’s also a good idea to find a mentor, who can help you understand the basic principles of real estate investing.
From there, it’s on you to come up with a plan. Are you going to look for properties with the highest potential for long-term growth? The highest profitability when renting? Once you define a goal, you’ll have a much easier time finding a first property that aligns with that goal.
6 Unexpected Security Concerns, and How to Prepare
As powerful as the Internet is right now, it’s impossible to even imagine where it will go over the next years and beyond. But, as fast as security protection continues to improve, hackers seem to improve even more quickly. Everything from new devices to apps…
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
What Is Salesforce Data Integration?
Salesforce data integration means integrating the data you gather in Salesforce about leads and clients and sharing that with another system. At the same time, the data gathered in the other system is shared with and accessible in Salesforce. Salesforce has some useful built-in integrations….
Why It Pays To Be A “Good Guy” In Commercial Leases
In the world of commercial real estate, good guys don’t finish last. Good guys protect their personal finances and credit. The good guy clause is very popular in areas like New York where the eviction process can be rather lengthy and it can take a…
3 Ways to Prepare For Cyber Security Risks That Employees Must Know
In a world where everything is much easier to do via mobile, app, or device, technology is not going to slow down. We’re all guilty of potentially owning more than one device, whether that is our personal phones, work phones, tablets or fitness trackers. All…
Non-Negotiable Elements For Your Business IT Security Plan
In 2019, having a business IT security plan is more important than ever. An IT security plan is the first line of defense you have for protecting your business – and your clients – against cybercriminals. Cybercriminals include hackers, who frequently obtain personal information with…
Businesses Need To Be Proactive When It Comes To Cyber Security
For business of any size, making sure they are not only compliant with security regulations but continually improving and adjusting the measures they have in place is vital. Quite often the factor which determines how a business approaches cyber security is the mindset of the…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…