Currently set to Index
Currently set to Follow

29 Best Income-Producing Assets to Build Wealth

March 15, 2024

cartoon of men with ways to make money in thought bubbles over their heads

Are you trying to figure out how to generate wealth?

Having multiple streams of income is the only way to get there.

Everyone's heard the saying: "Work smarter, not harder" and that's what multiple income streams is all about.

Develop income-producing assets that generate passive income and you've got one of the best methods to build wealth-just ask any of the big-name millionaires like Grant Cardone, Gary V, or Warren Buffett.

These guys know the secret to financial success is multiple streams of revenue-mostly in the form of passive income.

If you're looking for some real-world examples, here are a few of the best income producing assets to build wealth, but first let me give you my quick 411.

A lil bit about me... My name is Ippei...

I went from working a day job in my little cubicle to living in a nice apartment in San Francisco by working from home building & ranking simple websites that generate leads for small businesses.

That tree service site above has been making me $2000 per month since 2015, and imo this biz model is one of the best opportunities on the internet.

You can click here for more info on this lead generation business.

Physical Assets

Owning or investing in physical assets is one of the best ways to generate revenue and create financial freedom. 

Physical assets are tangible items that have a material presence and an economic, commercial, or exchange value to generate a passive income stream and produce substantial revenue. 

Keep reading for several of the best physical assets to buy that will build wealth and provide an alternate stream of monetary compensation.

Chapter 1

Rental Options

cartoon of a GPS searching for apartments

Rental properties are basically the definition of income-producing assets.

I know that real estate feels like a big thing. It doesn't seem like it would be a great asset to buy in your 20s when you're still trying to figure this whole "adult" thing out.

But by investing in a second, third, or even fourth property for the sole purpose of rentals, you are essentially purchasing a home for free.

Right now you're like, "wait....how do you purchase something for free?"

Think about it. 

The idea is to have a tenant paying your mortgage bills and property taxes every month in the form of rent.

If they are also responsible for all utilities and amenities, your only out-of-pocket expenses will be any repairs or renovations, and general upkeep.

If you are the handy type, these expenses can be pretty minimal, but even if you have to outsource the work, you'll be trading time for money. 

By purchasing a reasonably priced real estate investment and securing good, consistent tenants, it will build more equity than the initial cost of financing.

Here are a few rental suggestions to examine when considering the best income-producing assets to build wealth.

1. Single-Family Homes

Single-family rental homes amount to more than one-third of rental properties in the United States and will equate to 29 million households by 2030.

It's really not surprising that the demand is higher than the inventory, which is excellent news for potential investors.

With single-family rentals on the incline, now is the ideal time to invest in this income-producing opportunity and secure long-term capital appreciation.

Rental property offers cash flow, and single-family rentals have less aggravation as you are dealing with fewer people, appliances, and wear and tear.

When considering alternative investments, single-family rentals are at the top of the list because they're capable of generating consistent wealth, and an inflation-proof/less volatile investment option than the stock market. 

Let's take a minute to examine the fiscal benefits of owning and renting out single-family homes:

  • Tangible assets that impose retirement savings-once the mortgage is paid in full monthly rent can be invested for your golden years-or you can opt to sell equating to substantial profits.
  • Tax benefits are plentiful-you can write off depreciation-property taxes-and any repairs or expenses incurred.
  • Capital gains and appreciation-sell when the market is hot-and you stand to recoup a significant return on your investment.
  • Leverage potential-you pay the 20%-25% as a down payment-as the home appreciates so does the value of your investment.
  • Consistent income-less prone to the pendulum swings of the stock market-the real estate market offers stability and profitability.

Real Estate is one of the best income-producing assets to build wealth, and single-home dwellings are a great place to start. 

Here is an article and an excellent resource for those interested in pursuing this passive income strategy.

2. Multi-Family Property

Rentals are some of the best income-producing assets to buy.

Offering leverage and diversification, you are using other peoples' money to make money. 

Brilliant strategy, right?

While there is higher profit potential in owning multi-rentals, duplex, triplex, or even quad units, you need a basic understanding of how to locate, finance, and manage multiple units.

Again....not rocket science, but it is a bit more complex than owning a single-family home rental.

If you want to maximize your earning potential, be sure to do your research and consider the following:

What type of rental style is best suited to your financial goals?
How will you balance the income versus management and upkeep?
Where will you choose to purchase property?
Is the property worth the investment and does it have the capacity to generate profitability?
How much are you willing to invest?
How will you finance?

This article offers some additional suggestions and strategies worth checking out if you're considering purchasing a multi-unit rental.

picture of multi unit homes

The demand for multi-rental units in the United States is on the rise as vacancy rates are at an all-time low.

The challenge for both tenants and potential investors is securing an ideal location and the best deal.

Check out this post outlining the best cities in the United States to purchase rental property.

More often than not, investors are bidding against other investors, which makes getting the best price a bit of a challenge.

The other concern is that you are exposed to 'location-related risks' when all of your eggs are in one basket as opposed to being spread out over multiple properties.

The beauty of rental properties, though, is that you're not limited to only owning them in the area where you reside.

You can purchase property anywhere in the world if you are willing to hire property managers to care for and maintain your investment.

This article offers additional information and suggestions on what to look for and considerations before purchasing a rental property including things like:

 1

Neighborhood & Property Taxes

3

Crime & Number Of Vacancies

 2

Schools & Job Market

4

Amenities & Future Development

3. Apartment Rentals

Apartment rentals in the United States add up to over $183 billion in value, and continue to rise as the demand for affordable housing options dwindles.

When demand is higher than supply, the opportunity for profitability is more compelling, and wise investors who act quickly can earn a substantial ROI as a result.

cartoon of a woman handing over the keys to an apartment to a family

The Pros:

Owning an apartment building as opposed to a single-family dwelling or even duplex scales your ability to leverage capital and provides a steady stream of  passive income.

Here is a publication outlining current statistics regarding the rental property market that may surprise you.

Substantial capital is required to finance upfront maintenance costs and ensure you have the necessary funds to cover any vacant months.

On the flipside, many expenses are tax-deductible, and as your property appreciates (or increases in value) the end result is an asset of higher value than when it was when you originally purchased it.

The Cons:

The biggest challenge for apartment rentals is property management.

With advancements to technology, this market is experiencing time-efficient trends that will inevitably ease the strain and potential headaches for landlords.

Implementing operational changes to improve efficiency allows landlords to maximize their bottom line and ensure tenants remain complacent. 

This article breaks down some rental property investment basics.

4. Mobile Home Park Rentals

Over 6% of Americans live in mobile home parks. That's over 20 million people

Mobile home parks are in high demand, and for investors, they provide not only clear returns but one of the highest cap rates of any real estate niche-between 7%-10% as per this post.

The majority of investors own the land, not the actual units, which lowers your initial investment and offers diversification, allowing you to maximize your income portfolio. 

Responsible for maintaining the property, there are fewer location related risks and lower repair costs, which only add to your profitability.

By owning only the land, the tenants are responsible for their individual units. Keep the grounds looking good and ensure people adhere to the rules, pay their rent on time and you are looking at lucrative investment with these perks:

The Benefits of Investing and Owning Mobile Home Parks

You Own the Land not the Unit=Lower Overhead

Typically you own and rent out the property to people with existing units which cuts down on your initial costs and offers you increased revenues.

Less Out of Pocket Expense for Repairs & Maintenance

Responsible only for property and grounds maintenance significantly lowers monthly costs to maintain than owning the unit or family dwelling.

Risk Is Dispersed

By renting numerous parcels of land you are not dumping all of your savings into one residence reducing the potential rent dodger and any out of pocket expenses.

Prevalent Demand With Less Tenant Turnover

There is a shortage of affordable housing in the United States which is prompting individuals to purchase mobile homes with the intent to live in long-term.

Real Estate's Best Kept Investment Secret

The majority of real estate investors are after single and multi-unit rentals leaving the mobile-home rental option flying under the radar.

Check out this article for additional information on why mobile home parks are one of the best income-producing assets to build wealth.

picture of vrbo homepage

5. Short-Term Rentals

Short term rentals in the United States is a $10+ million industry and projected to see an annual growth rate of 19.7% between now and 2023

This rise in popularity is being driven by tourists in search of temporary lodging and offers a plethora of opportunities for investor enthusiasts.

Secure consistent rentals and charge more per night than the average long-term rental unit, and you will not only create a steady flow of cash but generate long-term profitability.

With the right location and investment strategy, short-term rentals can generate higher returns than long-term rentals, as per this publication.

Interestingly there are a few loopholes around owing and renting real estate for short-term rentals, explicitly in the Airbnb market, in what is referred to as rental arbitrage.

Consider renting a property on a long-term basis, eliminating the need for the 20% down payment to purchase a home.

There are infinitely less financing headaches, and this strategy has the ability to provide you with a positive cash flow. 

Re-rent this property on a short-term basis on platforms such as Airbnb or VRBO and voila-you are generating a passive income with minimal to no out of the pocket expense. 

If you are not convinced, check out this article that dissects this strategy and offers additional information on how to capitalize on this investment opportunity.

6. Garage & Parking Spot Rentals

cartoon of a car parked in a parking lot

Renting out space you are not utilizing is one of the simplest ways to generate a passive income.

People have a ton of stuff and are always in search of storage space. 

Rent is expensive, and storage units cost a considerable amount of money, so it's not uncommon for people to search for affordable alternatives to stash their excess belongings as per this post.

Your garage shed, barn, yard or driveway (and even your parking space) can all be up for grabs if the price is right, and you develop an iron-clad contract.

Monthly rentals will add up quickly--sometimes to the tune of $300+/month.

With minimal effort, you can generate a lucrative cash flow if you just shift your thinking a bit and start to view your garage or parking space as potential income-producing assets. 

7. Sublease Rentals

Sublease rentals have the potential to be highly lucrative, but are not always permissible by law in the United States.

Overseas, though, might be a different game. It could be a great income-generating asset in the UK. (If you're in the UK and happen to know for sure, please drop a comment below and fill your boy in.)

The premise here is that you rent property-an apartment, condo unit, etc. and sublet it to a secondary individual for more money than you pay for it and bank the rest. 

Depending on your moral compass, this suggestion may not fly with your code of ethics but it is a quick way to make some fast cash.

You may reside in a state where this practice is not sanctioned, so be sure to take a close look at both your tenant contract and state legislation before you commence with this passive income-producing idea.

Here is an article advising of your rights to sublet, share, and assign that provides valuable insight with regards to this suggestion.

picture of a sublease agreement & a pen

There may be stipulations around subleasing, but if there is nothing written with regards to 'sublet rental rates,' then you have a passive income stream on your hands as per this publication.

Consider taking over existing leases-from friends, Craigslist, listed in the classifieds or on Facebook Marketplace if your sole purpose is to rent and re-rent as a form of generating income.

This investment strategy requires no initial investment, but beware that should your sublet tenant renege on the rent, you will be responsible for payments.

Check out this post outlining the dos and don'ts of subleasing and be well informed before you consider this option.

Chapter 2

Agricultural Opportunities

picture of a bag of money in a corn field

Agriculture is a $1 trillion industry and contributes over $132 billion of the United States gross domestic product. 

While many of us do not aspire to be farmers, there is definitely the potential to earn a passive income in this market. 

With options to own and lease land, natural resources, and even livestock, the agriculture sector offers some of the best income-producing assets to build wealth.

Here are a few of the top contenders to deliberate.

8. Timberland

No, I'm not talking about the butter boots.

Timberland isn't just about cutting down trees for lumber anymore--although lucrative in itself--but now there are carbon credits and non-timber revenue streams.

Things like hunting rights, conservation easements, wetland, and endangered species banking programs.

Simply, it's riddled with investment opportunities.

These trends are paving the way for timberland diversification revenue sources in addition to cultivating 'sustainability-driven' assets as per this article.

Like any real estate investment, timberland acreage is going to cost you money.

But consider the amount you will invest versus profit potential. 

Start a Woodworking Business

Market predictions indicate price increases for 2022, so even if you are paying $100-$500/acre, with average returns of 12% per year, you are pocketing a decent amount of coin. 

And don't forget the capital gains.

Timberland offers income tax advantages and qualifies for capital gain treatment.

It also offers flexibility for taxpayers in the event they wish to transfer property for reinvestment purposes as per this publication.

9. Farm Land Leasing

picture of a tractor and sprayer

915 million acres of land in the United States are dedicated to farmland, but just under half of that land is not owned by farmers.

With 39% of farmland being leased or rented in the United States, agricultural real estate is an opportunity to produce wealth and invest in a passive income opportunity.

There is some science behind this methodology, however, as soil conditions, climate and environmental factors all contribute to how successful commercial crop production will be.

There are several income scenarios you can manipulate with this suggestion, including:

  • Custom Farming-hire farmers to grow crops on your land for a flat rate.
  • Crop Sharing-you provide the land-the farmer provides the equipment and labor.
  • Cash Rent-the farmer pays a fixed amount every month (a good solution if you're investing for monthly income.)
  • Residual Income-things like hunting leases, mineral rights, and solar panels directly from your farmland.

This post offers additional information and profit projections for each.

Investing in farmland is one of the most lucrative business options in agriculture.

Check out this article confirming that this untapped asset is worth closer examination.

10. Race Horses

Horse racing. 

An American pastime filled with excitement and potential, although not everybody is a fan for understandable reasons. 

This suggestion is for those willing to take risks, and those who of course aren't totally adverse to the idea.

Gambling is never a sure-fire way to generate profits, but you may just get lucky if you are ready to take the chance.

The nation's thoroughbred racing industry is a $9+ billion market, and while this sport has its pitfalls, there are definitely advantages if you are willing to cough up some cash.

On top of your initial investment, you should plan on spending around $60,000/year for boarding, training, and jockey fees as per this post.

You don't necessarily need to own the whole horse, however, as there are options to buy shares in racehorses and shoulder the costs with other investors. 

This method would significantly lower your overhead costs, but will also reduce your profit margins as you will need to split the winnings with your partners.

picture of horses racing

You are not limited to making money with racing.

There is big money in stud fees and broodmares if you land a winner.

The key is to connect with someone knowledgeable in this industry and be willing to play the odds.

Investing in racehorses is never a definitive way to build a passive income stream, but what if you get lucky?

This article offers some things worth considering before you take the plunge like:

1

How do I become a racehorse owner? 

2

What are the benefits of a partnership?

3

How much should I spend to own a horse? 

Chapter 3

Business Ventures

vector of a person hopping from one level of gold to a higher one

Investing in business is a viable opportunity to grow your money and is one of the best income-producing assets to build wealth, but understand your options. 

Common business investment structures for tangible goods or services can be divided into three distinct categories. 

Property-cash or defensive investments

Each offers advantages and disadvantages, so take the time to research which best coincides with your financial vision and overall investment strategy. 

Here are a few suggestions that have the potential to generate a passive income and secure a generous ROI.

11. Franchise

American consumers eat more fast food than the citizens of any other country in the world. 

With average spends equating to about $1,200/year per person, if you have the capital to purchase a franchise, you essentially own a license to print money.

Name recognition and brand loyalty go a long way with the American consumer, and with seemingly limitless options, there is a host of opportunities to produce a steady stream of income.

Be forewarned, however, that not all franchises are created equally.

Just because you own the franchise doesn't mean you get to do whatever you want with it.

You must adhere to the parent company's restrictions.

And in some cases, that means working a predetermined number of hours weekly, thus negating the chance to create a passive income.

cartoon of multiple franchise locations

Franchises also come with a hefty price tag.

But there are a few options that do not require millions of dollars of liquid assets and capital making it one of the best liquid assets to own.

Check out this list of the top franchises you can start for under $20,000.

By purchasing a franchise, you are buying an established business which not only increases your chances of being successful but does wonders for your profit margins. 

Here is an article providing information on the best franchise options including:

Best Franchises To Buy In 2022:

  • McDonald's & 7-Eleven

  • Dunkin' & The UPS Store

  • Popeyes & Sonic Drive-In

  • Great Clips & Kumon Math & Reading Centers

12. Fund/Finance Small Businesses

Small businesses are the backbone of American consumerism. And as we head into 2022, we've never needed them more.

Long before the mega-malls and super-centers showed up, Americans relied on small businesses for everything from groceries to home appliances. 

Unfortunately, now small businesses face financial turmoil.

Hard-pressed to compete with discount barns and corporate funding, many of these 'mom & pop' shops are closing their doors.

Tough times for the owners, but a profitable investment opportunity for individuals with a flair for marketing and existing capital.

There are two ways to invest in small businesses. 

  1. Purchase, re-build and generate an income (equity)
  2. Invest by lending money to the existing owner for a piece of the profits (debt)

Let's take a closer look at the comparisons between the two options:

Equity

Slice of the Action

  • Trade Capital for a Percentage of Profit/Loss
  • Higher ROI
  • More Risk Intensive than Debt
  • Offers Paid Dividends

Debt

Fiscal Lending

  • Loan $$$ for P&I (principal and interest)
  • Lower Risk than Equity
  • Less Profitability
  • Fixed Interest Income

This article provides additional information regarding equity versus debt.

When determining your best course of action, consider your overall plan for the business. 

Are you looking for a full or part-time job that produces additional income?

Or would you prefer to generate a passive income and maintain a hands-off approach to your purchase? 

Do you have the capital to be an angel investor (the person who provides the capital) and sole contributor to keeping this business afloat?

Angel investor is by far the most lucrative and embodies the definition of passive income.

But ensure that the investment is airtight before you commit as you have no legal recourse should the deal go belly up.

13. Flip Houses

Stop and consider just how many television shows are dedicated to flipping houses

Someone is on to something. 

House flipping is purchasing a property with the intention of either renovating and reselling for a value higher than your expenses or buying low-holding tight and selling when the real estate market is on the rise.

On average, a house flipper will gross profits of around $60,000-nearly a 41% ROI.

But it requires a TON of work and does not come without its share of risks-specifically investment versus time-renovation and spending costs. 

The more work you do yourself, the higher your personal profits.

Add a slow market into the equation and your investment begins to dwindle pretty quickly.

Most house flippers deem anything less than $20,000 profit to be more hassle than it's worth.

The key to being successful with flipping houses is all about the preparation as opposed to the actual execution as confirmed  by this publication.

picture of a house being torn down

In terms of a passive income stream, this is not a contender, however, there are plenty of opportunities to maximize profits and secure a steady stream of income with house flipping.

If it all seems like too much work, consider micro-flipping, which is buying property under contract and flipping them for profit. 

Like wholesaling online and all you need is a reliable internet connection and device as per this post which also provides additional details regarding this new evolution of real estate and includes things like:

  1. Getting access to the data
  2. Contacting the sellers
  3. Shifting them to the plentiful pool of buyers out there right now
  4. Keeping up your momentum

Digital Assets

Digital assets are anything existing in binary data.

Unlike physical assets, they hold no tangible form but are as, or even more, valuable than their physical asset counterparts.

The definition of digital assets continues to shift as technological advances and how the world conducts business become more online focused.

With the rise in online platforms, the potential to own, operate, and control a realm of digital assets has become limitless. 

Included in this section are financial suggestions that can be handled online and may be some of the best income-producing assets to build wealth available. 

Chapter 4

Online Alternatives

image of people talking on a computer screen

America has embraced the digital world with open arms.

With 312 million internet users, the United States ranks number one in the world for internet service providers. 

Over 90% of American adults utilize the internet in some capacity, so it stands to reason that online alternatives to generate wealth are abundant. 

Here are a few suggestions on how to best employ the online realm to build wealth and achieve financial independence.

14. Websites

Everything is online. The life and blood of most businesses rely heavily on their digital presence. 

Building and ranking websites is a skill set in and of itself, but if you have a bit of patience, some technical know-how, and view yourself as an SEO guru, consider buying and selling websites for profit.

  • Determine a profitable niche.
  • Do some digging and find an expired website in that field.
  • Be sure to check for bad links, etc. as you want to start with as clean a slate as possible.
  • Purchase that site for a ridiculously low-ball amount and work your magic.
  • When your site is ranking, has built up some trust and authority, re-sell for your predetermined price and profit the earnings.

There are numerous website flipping platforms, such as empireflippers and flippa.com to help locate expired domains.

cartoon of people building a website on a computer screen

Check out this post outlining how to make money with these specific platforms.

There is work with this suggestion, but considering it is an underutilized option for most investors, there is also considerable compensation.

Low overhead and the potential for significant profits make this one of the best income-producing assets to build wealth, as evidenced by this publication.

15. Digital Products & Online Courses

cartoon of people around a computer on their devices

The beauty of creating digital products or online courses is that it is a global market. 

Online opportunities are not bound by geographical boundaries, which in turn provides you with colossal selling potential. 

The digital transformation market is expected to be worth $800 billion by 2025, confirming that now is the ideal time to consider this as one of the best income-producing assets to build wealth.

The key is to pinpoint a profitable niche. Go in for the jugular. What is a person's pain point? 

Now it is up to you to provide a solution. 

Check out this article outlining the recommended steps to build a digital product or online course that will sell itself.

Granted, there is a lot of work on the front end with this suggestion.

Research, creating, and marketing your course or product takes time and dedication.

But once you have all the kinks ironed out, it will virtually sell itself-even while you sleep, creating an influx of money-all passive income, my friends.

Your digital product or online course will sell over and over again.

Offer up- sell options and bonuses to increase revenue and see your profit margins soar.

Your digital product or online course needs to deliver inherent value.

Customers need to want your stuff and want it enough to pay for it. 

Here is an article outlining twenty digital products to get you started.

16. Affiliate Marketing

Affiliate marketing is a style of performance-based marketing where businesses pay affiliates for their marketing efforts. 

This can be in the form of a website, Facebook ads, or social media platforms. 

The premise is that you are promoting another business's product or service through affiliate links.

When those links are used-either to sign up for a service or purchase a product-you make money.

Affiliate marketing takes some work and commitment to the process, but if you are tenacious, choose your niche with care and offer solutions to your audience that are relevant, you have the potential to generate significant profits.

cartoon of two men shaking hands after a business deal

Check out this article I published-a complete guide to starting affiliate marketing offering solid advice on how to scale profitability with this suggestion.

Once you have a well-oiled wheel, affiliate marketing can literally make you money while you sleep creating a steady flow of passive income.

Chapter 5

Financial Considerations

picture of american 100 dollar bills

When considering financial income-producing assets to build wealth, the primary goal is to generate a passive income with substantial returns on your investment. 

The key is to diversify and contribute to assets that appreciate and offer reinvestment opportunity-think discount opportunities that will generate cash flow. 

Risk also factors into the equation. Higher risk may result in higher profit margins-or could land you in the red if an investment goes south.

Many financial assets offer tax deductions and do not necessarily require tremendous capital to invest. 

Research is paramount, so connect with a financial planner or, at the very least, someone well-versed in investing before you go at it alone. 

The goal is to keep capital losses to a minimum and maximize your ROI. 

Here are a few best income-producing assets to build wealth suggestions that should do just that.

17. Money Market & Savings Accounts

So this is really old-school, but for those of you who are not willing to take any risks with your hard-earned money, this is a step up from hiding it under your mattress.

Money markets and savings accounts will not generate substantial profits. They will, however, pay more than an average checking account or your bedroom.

Money markets pay in accordance with a balance tier. The higher your balance, the better your interest rate. 

Typically the APY (annual percentage yield) for money markets and savings accounts falls between 1.50%-1.80%

Here's an article with the best money market rates to date for 2021.

cartoon of a man watering a tree

If you are a budding investor and unsure of the terrain, savings accounts and money markets are a decent place to start while you conduct research and determine your best financial course of action.

Understand this suggestion will not glean you much with regards to profitability, so set realistic expectations and don't park your coin in one of these accounts for too long if your goal is to build wealth and generate a passive income.

This article offers additional advice and the advantages and disadvantages of this investment strategy including things like:

Advantages:
  • Great Place to Park Money

  • Liquidity Isn't Usually An Issue

Disadvantages:
  • Purchasing Power Can Suffer

  • Returns May Vary

18. Certificates of Deposits

cartoon of people on top of stacks of money with ledgers and a pen

Certificates of Deposits (CDs) are like a middle-school graduation from savings and money market accounts. 

Still uber-safe and risk-free and not going to achieve much in the way of profitability.

One attractive feature of a CD is that monies deposited up to $250,000 are backed by the federal government in what is referred to as an FDIC savings account. 

This method secures your investment and is a guarantee that even if the bank runs into financial stress, your money will not be affected.

CD's have a fixed interest rate-typically between 1.6%-2.25% and do not usually charge monthly user fees.

This publication offers a list of banks offering the best interest rate for CDs in the United States.

The crux is that you have one chance to deposit and then must leave your investment in the CD for the agreed term or face financial penalties as further outlined in this article.

Again you are not going to build tremendous wealth with this idea, but you will earn more than the average savings account. 

For people who are unsure where they want to invest long-term or struggle to keep their hand out of the cookie jar, this is a reliable method of receiving a return on your investment even if it is not one of the most lucrative.

Check out this article, which provides additional information and considerations to investing in CDs.

19. Bonds

Bonds offer stability and an interest rate better than their CD counterparts. 

Essentially a bond is a debt instrument. An IOU from a business to an investor if you will. 

Businesses turn to investors as opposed to banks to secure loans to generate capital.

By investing in interest-paying bonds, the business is agreeing to pay you the initial capital plus accrued interest. 

Interest rates on bonds are fixed, which provides a semblance of security for the investor, but beware. 

Should an issuer default on payments or inflation rates soar, you could end up losing more than you bargained for as per this post.

picture of bonds

There are four main types of investment bonds, each with its advantages and disadvantages and include:

  • Treasury Bonds: issued by the U.S. government and are the highest securities available.
  • Municipal Bonds: issued by state or local governments, they are exempt from federal tax but run the risk of the local government going bankrupt.
  • Corporate Bonds: fund business expansion and offer higher yields but are riskier than government bonds as you are at the mercy of the company's financial outlook.
  • Zero-coupon Bonds: fluctuate in price but can be purchased at a significant discount and are redeemed for full value upon maturity.

This article provides a more detailed analysis of the types of bonds available in the United States.

20. Dividend Stocks

Investing in dividend stock is unequivocally one of the best income-producing assets to build wealth schemes around. 

A fantastic opportunity to build long-term wealth, the premise is investing in stocks that pay dividends.

These corporations are well-established and have a track record of distributing earnings to shareholders.

Dividend yields vary from company to company but fall somewhere between 4.6%-9.1%

Take a look at this article outlining 25 of the highest-paying dividend stock and how to invest and build an annuity-like flow of cash.

Less volatile than stocks, dividends payout at predetermined times throughout the year and are an excellent opportunity to generate a passive income.

picture of a walmart sign

There is an exclusive group of corporations known as the 'Dividend Aristocrats, S&P 500 index constituents who have been paying consistent dividends for over 25 years. 

Companies like:

  • Coca-Cola & Chubb
  • AT&T & PepsiCo
  • Walmart & Target

Businesses that have a reputation built on trust and reliability and generate some of the top-paying dividend stock in the United States-outperforming the market year after year.

21. Index Funds

Index funds are a type of mutual fund or an exchange-traded fund (EFT) designed specifically to adhere to the criteria of a collection of preset rules, including tax management, tracking error minimization, and algorithms. 

The goal of this approach is to construct a portfolio matching the components of the financial market index-like the Dow Jones Industrial Average

This method provides investors with exposure to a broad market, minimal operating costs, and low portfolio turnover.

Investing in index funds is a great solution for new investors or individuals with minimal capital to get in on the action with diversified risks.

There are several types of stock index funds available and include:

1.

Broad-Market Index Funds: designed to record the market or subset of the market's performance.

2.

Global-Market Index Funds: devised to implement world-wide stock options as opposed to internationally based indices that do not include USA-based corporations.

3.

Sector-Specific Index Funds: constructed to monitor a specific sector's performance.

This article lists information about index funds and a more detailed analysis of each type.

This passive income stream is contrived completely through electronic management software, eliminating the need to manage stocks or invest time in analyzing your portfolio.

Platforms such as wealthfront, and betterment.com employ 'robo-advisors to administer efficient investing results and are an excellent opportunity for first-time investors to secure income-producing assets to build wealth

Check out this post listing the top robo-advisor choices for 2022 to learn more about investing in index funds.

picture of a graph depicting EFTs

22. Exchange-Traded Funds

Exchange-traded funds (EFTs) are similar to index funds with one glaring difference. EFTs are traded like stocks where index funds are considered a form of mutual funds.

With the option to buy and sell shares on the open market, EFTs typically have low expense ratios and can be considered more tax-efficient than index funds as per this post.

Ideal for beginners, EFTs are one of the best income-producing assets to build wealth as they offer:

  1. An abundance of liquidity
  2. Vast range of finance opportunities
  3. Accept minimal investments
  4. Provide diversification

EFTs also boast low expenses with no or moderate commissions. 

With reliable tracking and marginal bid/ask spends, investors interested in a hands-off approach have the option to choose known indexes like the S&P 500.

Check out this article that breaks down the pros and cons of this passive income suggestion like:

Pros:
  • Portfolio diversity & Low volatility
  • Low costs & High liquidity
  • Easy to trade & Tax efficient
Cons:
  • Potential trading commissions

  • Possibility of contango  

  • You don't own the underlying asset

23. Annuities

Not so much an investment, but more of a contract, annuities are an agreement between an individual and an insurance company best suited to those looking for long-term investment options.

If you do not have access to a sufficient 401(k) or alternate pension plan, then annuities may offer an alternative solution. 

While annuities are income-producing assets that build wealth, you need to have the patience to see that wealth come to fruition.

The premise is that you will be paid your initial capital plus interest over a period of time-like once a month for the next 20 years-for example.

Annuities cannot be cashed out, and there are substantial monetary consequences if you breach contract-which in most cases is virtually impossible as per this publication.

picture of a wallet full of money

Some annuities don't offer built-in inflation protection, so be wary and speak with a financial advisor before committing.

Should your annuity lack an inflation clause, your purchasing power may actually decline.

Annuities are definitely not for everyone, but they do offer the proficiency to save long-term.

Again, if you struggle to keep your hands to yourself but are wanting a secure(ish) retirement fund, they are worth consideration.

Check out this article providing a more detailed analysis of the benefits and pitfalls of annuities.

image of p2p lending

24. Peer to Peer Lending

Peer-to-peer lending (P2P) is a popular new investment trend in the United States.

The premise of P2P is connecting potential investors with borrowers online, eliminating the big banks and corporate entities.

The beauty of this lending style is that it allows you to make nominal investments and still reap the rewards of passive income through accrued interest payments.

Typically the average annual rate of return is 5%-10+%, which is paid monthly or quarterly.

This suggestion does not come without risk, however, and you must meet the criteria to be approved for this lending style.

Borrowers connecting with P2P, in general, have a poor credit score and are inadmissible for bank loans, so be sure to do your due diligence before you invest, as suggested in this article

Connect with reputable platforms like lendingclub, peerform, and prosper who take care of the behind the scenes stuff and significantly negate the risk of borrowers reneging on a loan.

Check out this publication, which offers a list of the best lending platforms and specific details for each.

Peer-peer-lending can be one of the best income-producing assets to build wealth options available, as evidenced by this post.

25. Master Limited Partnership

image of master limited partnership model

Master Limited Partnerships (MLPs) are an American business formation comprising publicly-traded, tax-efficient companies that are known for providing investors with a steady flow of cash.

MLPs typically invest in real estate or resource-based ventures. Oil pipelines, mines, and energy projects are among the favorites.

Structured as partnerships for tax purposes, MLPs don't pay corporate income tax.

Instead, taxes are procured at the level of each individual partner. 

This stroke of ingenuity often allows investors to defer taxation or, at the very least, avoid double tax resulting in higher profit margins.

The downside to MLPs is increased paperwork come tax time.

Also, be mindful if you have tax-exempt accounts like 401(k)s as this strategy may end up being more of a headache than it is worth.

This article provides a detailed analysis of MLPs and tax implications to consider including:

  • Bad For IRAs & Waiting On The K-1
  • Complicated Investments & Taxes
  • Long Term Tax Implications & Fake Yields

It should also be noted that cash flow is significantly impacted by interest rates which may negatively affect your bottom line.

When interest rates go up, safe bets like bank CDs and bonds rise, which makes the riskier MLP option less attractive to investors. 

Here is an article offering detailed information on how to invest in MLPs that has some solid tips and tricks for maximizing profits.

Chapter 6

Real Estate Lending Endeavors

cartoon of a giant hand depositing money into a group of buildings

Rental options to generate an income were mentioned earlier in this post, but there is an alternate way to achieve a slice of the real estate pie without owning physical property.

This definitely isn't one of the assets you'd want to buy as a teenager, but for those more seasoned in the game, real estate lending can be appealing because it offers multiple investment options and a host of opportunities to secure a flow of passive income with minimal investments. 

Below are a few of the favorites to capitalize on some of the best income-producing assets to build wealth.

26. Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are corporations that own and manage real estate property and mortgage portfolios.

Infamous for producing diversity and affordability, these popular income-producing assets consistently cultivate long-term and consistent revenue for investors.

The method behind the madness is that multiple lenders contribute a predetermined amount-dependent on the investment option-but promise it is much less than the 20% down payment required to own property. 

Platforms like fundwise and streitwise are a great place to connect with potential borrowers and offer service and support for investors.

 Types of REITs Available:
1.

Equity -handle income-producing properties.

2.

Debt-lend money to property owners and operate similar to a mortgage.

3.

Hybrid-utilizes both equity and mortgage to create diversification via interest and rent.

This article provides additional details and how to invest in each.

Armed with a solid track record of capital appreciation, this investment strategy allows venture capitalists the opportunity to capitalize on an option that would otherwise be financially impossible and build a passive income stream, as evidenced in this post.

27. Real Estate Crowdfunding

Crowdfunding offers an abundance of variables.

But real estate crowdfunding presents a viable option for investors aiming for high yields to capitalize on the elusive and often pricey market of real estate. 

The objective of crowdfunding is to collect small amounts of money from numerous investors to fund real estate investment trusts. 

This style of investing grants individuals access to private market real estate investments that typically offer a higher rate on returns than publicly owned options.

To the tune of 8.2%-12.3% as per this publication.

Online platforms like fundrise, realtymogul, and crowdstreet allow accredited and non-accredited investors the chance to contribute to debt capital financing or equity in real estate properties.

Here is an article providing additional podiums and specific details concerning each one.

picture of crowdstreet homepage

Real estate crowdfunding is a way to generate a passive income, diversify your portfolio, and secure substantial returns on your investment without having access to large sums of cash. 

This article outlines the pros and cons associated with this investment strategy and includes things like:

Pros and Cons Of Crowdfunding For Investors
Pros
  • Safe

  • Tax-free

Cons
  • Lack of control
  • Business risk 

Just like any investment, there are risks, and it is never wise to dump all of your earnings in one place. 

Do your research and plan your strategy.

But in terms of diversification, scalability, and passive income potential, real estate crowdfunding is an option worthy of consideration.

28. Invest in Mortgage Notes

Mortgage notes are like the truffles of real estate investing, but this advanced method takes some research and understanding to generate profits.

There are substantial returns on your investment, but they do not come without risk, as evidenced in this post.

Mortgage notes work like this:

  • Banks lend individuals money to purchase property.
  • The banks then sell real estate notes to free up their cash flow.
  • Buyers step into the role of the bank and collect on both the principal and interest (P&I).
  • As a lender in a perfect world, all you do is collect your coin every month.
  • Alternatively, the deal goes belly up and the borrower is forced to foreclose or declare bankruptcy, and you are either the owner of property or bust.

Make no mistake that mortgage notes are an excellent way to earn a passive income.

Just be prepared to perform your due diligence and determine not only what you are buying, but the credit history and property value attached to what it is you are buying.

There are two main categories of mortgage notes and two classes of risk that should be examined before investing and include:

Mortgage Note Types and Associated Risks

Mortgage Note Asset Classes
  • Residential-includes: single-family-duplex/triplex/quad units/apartment rentals
  • Commercial-includes: malls-office parks-warehouses-building rentals
Mortgage Note Risk Categories
  • Performing Mortgage Notes: meaning the borrower is up-to-date on payments
  • Nonperforming Mortgage Notes: also known as distressed notes meaning the borrower is behind with payments

This article breaks down the types, considerations, and a more detailed comparison of risk analysis or mortgage notes.

29. Tax Liens

Tax liens occur when businesses or homeowners fall into arrears on property taxes.

To recoup their money, the government will issue a tax lien on the property-often, attaching high-interest rates to the outstanding balance.

These liens are then auctioned to potential investors where the highest bid wins.

Profit is gleaned through ridiculously high interest rates to be paid by the homeowner. 

If the lien is not paid, the investor can force foreclosure and will ultimately own the home.

Interest rates can achieve 10%-30+/year depending on the state but rarely do homes enter foreclosure. 

Understand that in the event they do, you will be responsible for the property.

Alternatively, a home or business owner may refuse to pay or declare bankruptcy, which would leave you with a loss as per this publication.

picture of kite tax lien capital homepage

It is crucial to note that liens have an expiration date so pay attention and be sure to conduct through research into the terms before you purchase.

This style of investing is not recommended for beginners as you are competing against other investors, and often the auctions become a boxing ring that may not be worth the aggravation. 

If you have your heart set on trying your hand at this style of investing, consider connecting with a special investment fund platform such as kitetaxliencapital who perform the research and determine which tax liens to purchase.

An understanding of the worth of the physical property is also essential as often, the lien is worth more than the property, making a foreclosure a hit to your ROI.

There is definitely an opportunity to secure income-producing assets with tax liens, but examine the deal carefully and be certain the rewards outweigh the risks.

This article does a fantastic job explaining tax liens and suggestions on how to maximize profit potential with this investment strategy.

Lead Generation

IMO the Best Type of Assets to Own, Better Than Real Estate

Lead generation is the golden ticket to earning a passive income with digital assets. 

By building and ranking websites that hit the top of Google and get free traffic, you are constructing an enterprise of digital assets.

Lead generation is not a new concept.

And yep, there are a ton of online programs offering how to make money from home.

So what's different here? Besides everything?

This program offers a unique approach to building a passive income stream.

From the level of expert coaching to the continued support and weekly live streams, your success is encouraged and cultivated. 

The group is like a family-like-minded individuals from all over the world-all with the same goal of generating passive income and building wealth.

These lead generation websites are some of the best income-producing assets in 2022, and all you need is a laptop, an internet connection and a bit of hustle.

Lead Generation Is A Low-Risk Investment Opportunity For Creating Wealth

Think of your lead gen sites like digital real estate.

You own the sites and you own the leads.

By controlling digital assets and dominating Google, you're not confined to geographical locations or 20% down payments.

You have over 400 niches to choose from in any city or country in the world.

You don't need to be an SEO expert or even know how to build a website.

The training is so comprehensive we have seniors in our program crushing their lead generation game.

This business model boils down to six simple steps that include:

How Lead Generation Becomes A Semi-Passive Income Stream

Get your sites ranking and generating leads, and connect with a business owner looking to expand.

Sell those leads to generate monthly revenue.

The beauty is that if you follow the training and do the work on the front end, they're pretty hands-off once your sites are ranking.

This creates a semi-passive income stream and checks showing up month after month like a well-oiled wheel.

Just like I did with this tree site below.

One of my first lead gen sites, its been making me $2000/month for over six years.

And the best part?

There's no limit to how many sites you can build and get to the top of Google searches, so there is no limit to how much money you can make with lead generation

local lead generation example

Why Lead Generation Is the Best Income Stream To Build Wealth In 2022

The most significant difference with lead generation is the amount of money you can make with this semi-passive income stream. 

The idea behind lead generation is to supply business owners with leads to grow their businesses. 

Because you own these digital assets, you can do this over and over again, just like the over 7000 members currently enrolled in our program.

Build one-then build fifty more.

And with minimal overhead, pay for your domain, hosting and call tracking and the rest is gravy.

I think you've got a great list, and if you've read through the entire thing, you know the sky's the limit when it comes to the number of opportunities available. 

You're welcome to investigate any one of these further.

But if you want my personal opinion and you're serious about finding the best income-generating assets to produce wealth in 2022, then you need to consider lead generation.

Click the link below and book a time to jump on a call to learn more about lead generation.

If your goal is to generate a passive income and find the best income-producing assets to build wealth, then I sincerely hope that one of these suggestions meshes with your financial vision and investment strategy.

This is by no means an exhaustive list, so if you have an idea that our readers may benefit from, please feel free to leave it in the comments

Follow Me
Ippei Kanehara
Founder/CEO

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.

Leave a Reply

Your email address will not be published.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}