A diverse portfolio requires alternative investments. Traditionally, these include private equity investments, venture capitals, real estate, precious metals, and hedge funds. The following is not a list of traditional alternative investments, but rather some odd alternatives. These think-outside-the-box ideas can help you build wealth over time, diversify your portfolio, and provide you with a strategy that is entirely unique.
- Presidential Signatures
Presidential autographs are quite valuable, especially rare ones from adored leaders. Even new presidential figures see their autographs fetch a pretty penny at auction. Autograph dealer, Stuart Lutz, reports that President Obama’s signature can fetch anywhere from a couple hundred dollars to as much as $1500.
Malcolm Forbes, the billionaire publisher of Forbes magazine, was an avid collector. He collected more than 4,000 presidential autographs. His collection is estimated to be worth between $40 and $50 million and includes a rare copy of the Emancipation Proclamation signed by Abraham Lincoln himself. Signatures tend to increase in value as they become rarer, making them a smart long-term investment for the savvy buyer.
- Air Rights
In a 2014 investing column, the NY Times called investing in air rights a “cash bonanza” that’s like investing in “found money.” It’s considered found money because your right to buy and sell air rights is dependent on what you already own. In the article, the air rights were owned by a co-op whose building was not as high as the space they owned, which gives them the right to sell that space to a developer or real estate investor to build upon.
Your ability to profit from air rights depends on what you already own or intend to buy. More importantly, it depends on where the property is located. If you own an apartment building or high-rise in New York City, you’re one step away from a cash bonanza…
- Haunted Houses
Fancy scaring up some money? Haunted houses can be purchased for less, and their local legends almost guarantee a voyeuristic customer base. You can profit from pre-Halloween attractions, year-round tours, and even renters or bed & breakfast scenarios.
You’ll make the bulk of your money in the weeks preceding Halloween. You’ll need to invest funds into building a frightening attraction, hiring staff, and advertising. Look for houses that have a strong reputation for being haunted, as this word-of-mouth advertising will be invaluable when you open your haunted house to the public. Unusual Investments estimates that (after expenses), this will net you around $80,000 per year.
You’ll earn even more if you open the home to year-round tours. People love amateur ghost-hunting, so allow them to take photos and videos in their search for spirits. If you can find someone brave enough to live there, you can also earn rental income from the unused rooms in the house. Or, convert the property into a haunted bed & breakfast.
- Cryptocurrencies
Those who invested in Bitcoin years ago are living fat off the hog today. High school dropout, Erik Finman, made headlines when he became the world’s first 18-year-old Bitcoin millionaire. In 2011, he purchased bitcoins for $12 a token and began sharing them. Today, he has more than 400 bitcoins and they’re valued at a million dollars.
Today, Bitcoin is quite a bit more expensive. A single coin is valued at more than $3,000, so this is an expensive investment strategy; moreover, the market for bitcoin is unstable. CNBC reports, “Bitcoin is very volatile, and the value could decline rapidly. A technical analyst told CNBC he believes bitcoin will only go up to $2,800 before the value recedes, while others think it may reach $100,000 in a decade.”
Luckily, there is a way to forgo investment costs altogether. Bitcoin can be mined for free. It takes effort, but at those prices it’s ultimately worth the effort.
These aren’t your traditional alternative investments, but they’re good strategies for increasing wealth none-the-less. They’re the odd and profitable methods of some truly successful people. Proving that thinking outside-the-box is a great strategy if your goal is to get rich.
