100 Income Producing Assets to Invest In
In today’s financial landscape, investors are constantly seeking ways to grow their wealth and secure their financial future. Income producing assets have become a cornerstone for those looking to build sustainable wealth and generate passive income streams. These assets offer the potential for regular cash flow, appreciation, and diversification, making them attractive options for both seasoned investors and those just starting their investment journey.
This comprehensive guide explores a wide array of income producing assets, ranging from traditional investments like dividend stocks and bonds to more innovative options such as real estate crowdfunding and income producing digital assets. Readers will discover the best income producing assets, learn about easy assets to buy, and gain insights into what are good assets to buy to make money. From affordable assets to high-yield investments, this list of assets to buy provides a roadmap for individuals looking to expand their investment portfolio and create lasting financial security.
Traditional Real Estate Investments
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Traditional real estate investments offer diverse opportunities for generating income and building wealth. These investments encompass residential, commercial, and industrial properties, each with unique characteristics and potential returns.
Residential Properties
Residential real estate includes single-family homes, multi-family units, and vacation rentals. These properties can provide steady rental income and potential appreciation over time. Investors can benefit from tax deductions on expenses like property taxes and mortgage interest [1]. The median sales price of houses in the United States has increased by over 66% since the last recession, indicating long-term growth potential [2].
Commercial Properties
Commercial real estate encompasses office buildings, retail spaces, and multi-tenant properties. These investments often yield higher returns than residential properties, with annual total returns averaging 10.6% over the past 20 years [3]. Commercial properties can offer longer lease terms and the potential for higher rental income, making them attractive income producing assets for investors seeking stable cash flow.
Industrial Properties
Industrial real estate includes warehouses, manufacturing facilities, and distribution centers. With the growth of e-commerce, demand for industrial properties has increased significantly. From 2020 through 2021, e-commerce companies accounted for approximately 40% of all industrial absorption . Industrial properties often require less hands-on management compared to other real estate types, making them appealing to passive investors.
Real Estate Investment Trusts (REITs)
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Real Estate Investment Trusts (REITs) offer investors a way to gain exposure to income-producing real estate without owning physical properties. These companies own, operate, or finance real estate across various sectors. REITs are required to invest at least 75% of their assets in real estate and derive at least 75% of their gross income from real estate-related sources [1]. They must also distribute at least 90% of their taxable income to shareholders as dividends [2]. This structure provides investors with potential benefits such as steady income, portfolio diversification, and liquidity. However, REITs are subject to market fluctuations and economic conditions, which can impact their performance.
Equity REITs
Real Estate Crowdfunding Platforms
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Real estate crowdfunding platforms have revolutionized the way investors can access income producing assets in the property market. These platforms allow individuals to pool their resources and invest in various real estate projects, often with lower minimum investments than traditional methods.
Fundrise
Fundrise stands out as a platform that caters to both accredited and non-accredited investors. With a low minimum investment of just $10, it offers an accessible entry point for those looking to diversify their portfolio with real estate assets. Fundrise operates using a pooled fund model, similar to REITs, spreading investments across multiple properties to mitigate risk [1].
RealtyMogul
RealtyMogul provides opportunities for accredited and non-accredited investors to invest in REITs and private placements. The platform has a strong track record, delivering an average internal rate of return (IRR) of 20.7% on realized investments [2]. With a minimum investment of $5,000 for REITs, RealtyMogul offers a balance between accessibility and potential returns.
CrowdStreet
Catering exclusively to accredited investors, CrowdStreet focuses on commercial real estate opportunities. The platform has funded over 776 deals and boasts more than $4.16 billion invested in real estate projects across the United States [3]. With a typical minimum investment of $25,000, CrowdStreet appeals to investors seeking higher-end opportunities in the commercial real estate sector.
Stocks and Equities
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Stocks represent ownership in public companies and offer potential for income and growth. Dividend stocks provide regular payouts to investors, with an average yield of 12.69% among top performers [1]. Growth stocks focus on companies with significant expansion potential, often in innovative sectors. These stocks can experience sharp price increases but may not pay dividends initially [2]. Value stocks, typically found in established companies, trade below their perceived worth and often offer attractive dividends. They tend to have lower price-to-earnings ratios and higher dividend yields [3]. Investors can access stocks through individual purchases or diversified funds, allowing for a balanced approach to building wealth in the stock market.
Dividend Stocks
Exchange-Traded Funds (ETFs)
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Exchange-Traded Funds (ETFs) are popular income producing assets that offer investors exposure to various markets and asset classes. These investment vehicles trade on stock exchanges like individual stocks, providing liquidity and flexibility. ETFs typically track the performance of a benchmark index, such as the S&P 500 for stocks or the Bloomberg U.S. Aggregate Bond Index for bonds [1]. They offer diversification benefits, lower transaction costs, and greater liquidity compared to investing in individual securities. ETFs can be categorized into different types based on their underlying assets and investment strategies.
Stock ETFs
Stock ETFs invest in a basket of stocks from U.S. and/or international companies. These funds can track broad market indices or focus on specific sectors, market capitalizations, or investment styles. Stock ETFs offer potential for capital appreciation and may provide dividend income, making them attractive for investors seeking growth and income. They can serve as portfolio anchors or tools for diversification, depending on their composition [2].
Bond ETFs
Bond ETFs invest in fixed income securities such as government bonds, corporate bonds, and municipal bonds. These funds aim to generate income and preserve capital, making them suitable for conservative investors or those seeking regular cash flow. Bond ETFs can be categorized by maturities, credit ratings, and other characteristics. They typically offer more stable returns compared to stock ETFs but may have lower growth potential [3].
Commodity ETFs
Commodity ETFs provide exposure to physical commodities like precious metals, agricultural products, or energy resources. These funds can be structured in various ways, including physically backed ETFs that hold the actual commodity, futures-based ETFs that use derivatives contracts, and equity-based ETFs that invest in companies involved in commodity production. Commodity ETFs can offer diversification benefits and potential protection against inflation .
Mutual Funds
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Mutual funds are popular income producing assets that pool money from multiple investors to invest in a diverse portfolio of stocks, bonds, or other securities. They offer professional management and built-in diversification, making them attractive for both novice and experienced investors. There are two main types of mutual funds: actively managed and passively managed (index funds). Actively managed funds aim to outperform the market, while index funds track specific market indices. However, historical data shows that only 12.02% of actively managed funds outperformed the S&P 500 over a 15-year period [1]. Mutual funds can provide income through dividends, interest, and capital gains distributions, making them valuable additions to an investment portfolio focused on generating passive income.
Bonds
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Bonds are debt securities issued by governments or corporations to raise funds. Treasury bonds, issued by the U.S. government, are considered the safest investment, often referred to as the ‘risk-free rate’ [1]. Corporate bonds typically offer higher yields due to increased risk. Municipal bonds, issued by local governments, provide tax advantages, with interest often exempt from federal and sometimes state taxes [2]. Investors can purchase bonds directly through the Treasury Direct website or through brokers. When evaluating bonds, consider factors such as credit ratings, yield, and maturity date. While generally considered safe investments, bonds still carry risks, including interest rate risk and default risk.
Treasury Bonds
Peer-to-Peer Lending
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Peer-to-peer lending platforms connect borrowers directly with individual investors, offering an alternative to traditional banking. These platforms, such as Prosper, LendingClub, and Upstart, provide personal loans with competitive interest rates. Prosper offers loans ranging from USD 2,000 to USD 50,000 with APRs from 6.99% to 35.99% [1]. LendingClub’s loans range from USD 1,000 to USD 40,000 with APRs between 8.98% and 35.99% [2]. Upstart provides loans from USD 1,000 to USD 50,000 with APRs ranging from 7.80% to 35.99% [3]. Investors can potentially earn higher returns compared to traditional savings accounts, but should be aware of the risks associated with unsecured loans and the lack of FDIC protection .
Prosper
Certificates of Deposit (CDs)
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Certificates of deposit (CDs) are income producing assets that offer higher interest rates than traditional savings accounts. They provide a guaranteed return on investment, making them attractive for risk-averse investors. CDs typically have fixed terms ranging from three months to five years, with longer terms generally offering higher rates [1]. The best CD rates currently range from 4.30% to 5.00% APY [2]. CDs are FDIC or NCUA insured up to USD 250,000, providing a safe investment option [3]. However, early withdrawals often incur penalties, so it’s essential to consider your financial needs before investing in CDs.
Short-Term CDs
High-Yield Savings Accounts
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High-yield savings accounts are income producing assets that offer significantly higher interest rates compared to traditional savings accounts. These accounts typically earn around 5% APY, which is more than 10 times the national average rate of 0.46% [1]. Online banks tend to offer the most competitive rates, often with lower fees and minimum balance requirements [2]. Traditional banks and credit unions also provide high-yield options, though rates may be lower. These accounts are FDIC or NCUA insured up to USD 250,000 per depositor, making them a safe choice for storing emergency funds or saving for short-term financial goals [3].
Online Banks
Traditional Banks
Credit Unions
Annuities
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Annuities are income producing assets that provide a steady stream of payments during retirement. There are two main types: immediate and deferred annuities. Immediate annuities start paying out within 12 months of purchase, making them suitable for those nearing or already in retirement. Deferred annuities, on the other hand, allow for a longer accumulation period before payouts begin, typically benefiting those with more time before retirement. Both types offer tax advantages, with earnings growing tax-deferred until withdrawal. Annuities can also include death benefits, ensuring that beneficiaries receive remaining funds if the annuitant passes away before the contract’s value is depleted [1].
Immediate Annuities
Royalties
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Royalties offer a unique income-producing asset class, providing investors with stable cash yields and low correlation to traditional markets. Music royalties, in particular, have gained traction as an attractive investment option. These assets generate income from various sources, including streaming, physical and digital sales, live performances, and placements in visual media. The music industry’s resilience to economic cycles ensures consistent returns, even during market volatility [1].
Music Royalties
Music royalties stem from two main copyright types: publishing rights for compositions and master rights for specific recordings. Revenue streams include mechanical royalties from sales and streaming, performance royalties from public plays, and sync royalties from licensing for visual media [1]. Investing in music royalties can yield double-digit returns, rivaling bonds and dividend-paying stocks [2].
Literary Royalties
Authors earn royalties as a percentage of book sales, typically ranging from 5% to 15% for traditional publishing [3]. Self-published authors may receive higher royalties, up to 70% for e-books, but face challenges in marketing and distribution [3]. Literary royalties can provide a steady income stream for successful authors, with potential for additional revenue from film adaptations and foreign rights sales.
Patent Royalties
Patent royalties compensate inventors for the use of their intellectual property. Rates can vary from 0.1% to 25%, depending on factors such as market potential, industry, and patent uniqueness . These royalties are outlined in licensing agreements, specifying terms of use and payment schedules. Patent royalties offer inventors a way to monetize their innovations while allowing licensees to benefit from cutting-edge technology.
Business Investments
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Business investments offer potential for high returns and diversification in an investment portfolio. Franchises provide a proven business model with established brand recognition. The average salary of an entrepreneur is USD 55,000, based on working 66 hours per week [1]. Startups, while risky, can yield significant profits for early investors. According to the National Bureau of Economic Research, professional venture capitalists have a success rate of about 23% in their investment portfolios [2]. Small business ownership allows for control over income, expenses, and decision-making. However, it’s important to note that 4 out of 5 businesses fail within the first 5 years [3]. Despite the challenges, approximately 250,000 new businesses are started each month in the US, according to the SBA .
Franchises
Online Businesses
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Online businesses offer income producing assets with low startup costs and high scalability. Dropshipping stores allow entrepreneurs to sell products without holding inventory, reducing overhead expenses [1]. Print-on-demand businesses enable custom product creation without upfront investment, with the global market projected to reach USD 39.40 billion by 2030 [2]. Digital marketing agencies provide services to help other businesses grow online, with startup costs ranging from USD 50 for remote-based agencies to USD 40,000 for office-based operations [3]. These online ventures offer flexibility, potential for passive income, and opportunities to leverage digital marketing strategies for growth and profitability.
Dropshipping Stores
Print-on-Demand Businesses
Digital Marketing Agencies
Content Creation
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Content creation has become a lucrative income producing asset in the digital age. Blogging offers a platform for writers to monetize their expertise, with top earners making over USD 50,000 per year [1]. YouTube channels provide video creators with opportunities to generate income through advertising, sponsorships, and merchandise sales. The platform boasts over 2 billion users, with creators earning an average of USD 0.02 per view [2]. Online courses have emerged as another profitable avenue, allowing experts to share knowledge and skills while generating passive income. These digital assets offer flexibility and scalability, making them attractive options for those seeking to diversify their income streams.
Rental Equipment
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Rental equipment offers a lucrative opportunity for income-producing assets. The industry is experiencing significant growth, with the global market expected to reach USD 120.7 billion by 2027 [1]. Heavy machinery rentals cater to construction companies and large-scale projects, providing a steady income stream. Event equipment rentals, including tents, tables, and chairs, are in high demand for weddings and corporate gatherings. Sports equipment rentals, such as bicycles and water sports gear, have gained popularity due to the trend towards outdoor activities. These rental businesses can generate substantial profits, with party equipment rentals averaging a 40-50% profit margin [2].
Vending Machines
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Vending machines offer a unique opportunity for generating passive income. Food and beverage vending machines, including snacks, soda, and candy, dominate the market share in the U.S., with beverages accounting for 23% of vending sales [1]. Entrepreneurs can start with specialty machines, such as healthy snacks or fresh food, to cater to specific markets. Toy vending machines, particularly popular in Japan and the U.S., dispense collectibles and toys in small capsules. These machines can be highly profitable, with some operators reporting gross profits of USD 1,000 to USD 2,000 or more annually per machine [2]. The key to success lies in selecting the right location with high foot traffic and understanding the needs of the target audience.
Food Vending Machines
Farmland
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Farmland is a valuable income producing asset that offers investors diverse opportunities. Row crop farming, which includes crops like corn, wheat, and soybeans, accounts for over 75% of planted acres in the United States [1]. These crops provide flexibility and stable returns, with potential for long-term land appreciation. Permanent crop farming, involving trees and vines, offers higher economic returns but requires longer-term commitments. Organic farming has gained popularity, with companies like Farmland LP managing over 16,000 acres and more than USD 275.00 million in assets [2]. Investors can access farmland through direct ownership, REITs, or crowdfunding platforms, with average land prices for cropland at USD 4130.00 an acre in 2018 [3].
Mineral Rights
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Mineral rights encompass the legal entitlement to extract and profit from valuable resources beneath the Earth’s surface. These rights can be leased or sold separately from surface rights, creating a complex ownership structure. Oil and gas leases are common, allowing companies to explore and extract resources in exchange for royalties. Coal mining rights grant access to coal deposits, while precious metal mining rights cover gold, silver, and other valuable metals. Mineral rights owners can generate income through royalties, typically ranging from 12.5% to 25% of production value [1]. However, environmental regulations and market volatility can impact the profitability of these income producing assets.
Oil and Gas Leases
Coal Mining Rights
Precious Metal Mining Rights
Parking Spots
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Parking spots offer a unique opportunity for generating income. Residential parking in urban areas can yield significant returns, with some homeowners earning thousands of dollars annually from renting out their garages and outdoor spaces [1]. Commercial parking lots in strategic locations near airports, developing business districts, or growing urban areas can provide steady revenue streams [2]. Special event parking, such as for corporate events, sports arenas, and concerts, can be particularly lucrative. Event parking services can ensure seamless operations and maximize financial returns for clients [3]. Investors should consider factors like location, demand, and potential for future development when evaluating parking spot investments as income producing assets.
Residential Parking
Commercial Parking
Special Event Parking
Storage Units
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Storage units offer a lucrative opportunity as income producing assets. Climate-controlled storage spaces have gained popularity, especially in areas prone to extreme temperatures or high humidity. These units command higher rental rates, with costs ranging from USD 35.00 to USD 70.00 per square foot [1]. Outdoor storage facilities, consisting of drive-up units resembling garages, are the most affordable and widespread option. They require minimal maintenance and are user-friendly [2]. Specialty storage caters to vehicles such as cars, boats, or RVs, providing sheltered, locked parking spots. These facilities often offer additional services like temperature-controlled units for classic car preservation [3]. The self-storage industry continues to grow, with climate-controlled units becoming a standard feature in new builds, attracting customers seeking protection for valuable items.
Climate-Controlled Storage
Outdoor Storage
Specialty Storage
Laundromats
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Laundromats offer a unique opportunity as income producing assets. These businesses provide essential services to communities, especially in areas with high rental occupancy. Self-service laundromats require minimal staff intervention, making them attractive for passive income seekers. Full-service laundromats offer additional services like wash-and-fold, dry cleaning, and pickup/delivery, catering to customers seeking convenience. Hybrid models combine both self-service and full-service options, appealing to a broader customer base. The initial investment for a laundromat can range from USD 200,000 to USD 500,000, with potential annual revenues of USD 15,000 to USD 300,000 for self-service models [1]. Full-service laundromats can generate higher revenues, ranging from USD 50,000 to USD 1,000,000 per year [2].
Full-Service Laundromats
Car Washes
Car washes offer a unique opportunity as income producing assets. Tunnel car washes, the most revenue-generating service, can provide an average annual profit of USD 86,531 [1]. These systems use a conveyor belt to move vehicles through various cleaning stations, allowing for efficient processing of multiple cars simultaneously [2]. In-bay automatic car washes, which require less space and labor, typically charge about USD 6.34 per wash with a profit of USD 4.35 [3]. Self-service car washes, while generating less revenue, offer minimal maintenance and staffing costs, bringing in an average of USD 1,489 per bay each month .
Tunnel Car Washes
In-Bay Automatic Car Washes
Self-Service Car Washes
ATM Machines
Image Source: National ATM Systems
ATM machines are income producing assets that offer convenience to customers and revenue opportunities for businesses. On-premise ATMs, located within banks or retail stores, provide easy access to cash during business hours. Off-premise ATMs, found in high-traffic areas like shopping malls or airports, offer 24/7 availability. Mobile ATMs, often used at events or festivals, provide temporary cash access. The ATM industry has seen changes, with the number of machines in the U.S. declining 3.83% between 2019 and 2022 [1]. However, ATMs remain essential, with 71% of consumers using a combination of digital, branch, and self-service channels [2].
Billboard Advertising
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Billboard advertising remains a powerful medium for reaching large audiences. Highway billboards offer high visibility to commuters, with prices ranging from USD 750 to USD 14,000 per month depending on location [1]. Urban billboards target pedestrians and city dwellers, providing concentrated exposure in high-traffic areas. Transit advertising, including bus and subway ads, reaches captive audiences on the move. Over 67% of viewers engaged with digital transit ads, searching for advertisers or visiting their websites [2]. Additionally, 62% of jobs in U.S. cities are located within 0.5 miles of a transit stop, ensuring consistent exposure [3]. Billboard advertising’s effectiveness lies in its ability to generate brand awareness and deliver impactful messages to diverse audiences across various urban and rural settings.
Domain Names
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Domain names serve as digital real estate for businesses and individuals online. Exact Match Domains (EMDs) containing relevant keywords can boost search engine visibility and attract organic traffic [1]. However, Google’s algorithms now prioritize high-quality content over exact match domains alone [2]. Brandable domains, like Slack.com or Notion.com, offer unique branding opportunities and can increase a business’s value [3]. Numeric domains, particularly those with repeating patterns, have gained popularity in the Asian market and can command high prices . When investing in domains, consider factors such as length, brandability, and market trends to maximize potential returns .
Exact Match Domains
Brandable Domains
Numeric Domains
Websites
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Websites offer diverse opportunities as income producing assets. Affiliate websites generate revenue by promoting products and earning commissions, with top programs paying over USD 100.00 per referral [1]. Membership websites provide recurring income through subscription fees, with 45.2% of established membership businesses bringing in six figures annually [2]. Directory websites serve as valuable resources for specific industries or communities, with local business directories and job boards being popular options [3]. These digital assets can be lucrative investments, with some websites selling for 20-50 times their monthly net profit .
Affiliate Websites
Membership Websites
Directory Websites
Mobile Apps
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Mobile apps offer diverse opportunities as income producing assets. Gaming apps dominate the market, with the global market projected to reach USD 173.60 billion in revenue by 2023 [1]. Utility apps, such as productivity tools and financial management apps, provide practical solutions for users while generating income through subscriptions or in-app purchases. Lifestyle apps, including fitness trackers and meditation guides, have gained popularity, offering monetization through premium features and personalized content. These digital assets can generate revenue through various models, including in-app advertising, freemium subscriptions, and one-time purchases, making them attractive options for investors seeking to diversify their income streams.
Gaming Apps
Utility Apps
Lifestyle Apps
Cryptocurrency
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Cryptocurrency offers unique opportunities as income producing assets. Bitcoin mining, once accessible to individuals, now requires specialized hardware and significant energy consumption. Staking has emerged as a more energy-efficient alternative, allowing users to earn rewards by holding and validating transactions on proof-of-stake networks. Ethereum, the second-largest cryptocurrency by market capitalization, transitioned to a proof-of-stake model in 2022, offering staking rewards of approximately 3.6% for validators [1]. Yield farming, a more complex strategy in decentralized finance (DeFi), can provide higher returns but comes with increased risks. These digital assets offer potential for passive income, but investors should carefully consider the associated volatility and regulatory uncertainties.
Bitcoin Mining
Staking
Yield Farming
Precious Metals
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Precious metals offer investors a way to diversify their portfolios and hedge against economic uncertainty. Gold bullion, often considered a safe-haven asset, has historically held its value during market volatility. In 2022, when stocks and bonds recorded double-digit losses, gold climbed by 0.4% [1]. Silver coins provide a more affordable option for investors, with the potential for higher returns due to their industrial applications. Platinum bars, while less common, offer unique investment opportunities. The global platinum market is projected to reach USD 9.37 billion by 2027, driven by demand in automotive and industrial sectors [2].
Art and Collectibles
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Art and collectibles offer unique opportunities as income producing assets. Contemporary art has gained traction as an investment option, with the global market projected to reach USD 9.37 billion by 2027 [1]. Investors can focus on emerging artists, established artists, or blue-chip artists, each offering different risk-reward profiles. Antiques provide another avenue for investment, with the market making USD 4.50 billion in 2024 [2]. Sports memorabilia has also seen significant growth, with some items appreciating dramatically. For example, a 1952 Mickey Mantle baseball card sold for USD 12.60 million in 2022 [3]. These assets can offer portfolio diversification and potential for high returns, but require thorough research and attention to authenticity.
Contemporary Art
Antiques
Sports Memorabilia
Conclusion
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Investing in income producing assets offers a path to financial security and wealth accumulation. Diversification is key to managing risk and maximizing returns. A well-rounded portfolio might include a mix of traditional investments like dividend stocks and bonds, along with real estate options such as REITs and rental properties. Digital assets, including websites and mobile apps, provide modern alternatives for income generation. Regardless of the chosen assets, it’s crucial to align investments with personal goals, risk tolerance, and time horizons. Regular evaluation and rebalancing of the portfolio ensure it remains optimized for changing market conditions and individual needs. By strategically leveraging various income producing assets, investors can build a robust financial foundation for long-term prosperity.
References [1] – https://www.rocketmoney.com/learn/investing/income-producing-assets
[2] – https://www.investopedia.com/terms/e/earningassets.asp
[3] – https://www.zynergyretirement.com/retirement-resources/what-are-income-producing-assets/
[4] – https://www.fidelity.com/fixed-income-bonds/other-income-generating-products