Page 3 - Stock Market.pdf
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strategies                                                  ensure they're reliable and have
                                                                      domain expertise. But if you're willing
    Ø Rental properties and vacation                                  to put in the initial time and capital, you
         homes:                                                       can expect a 6 to 12 percent return           ,

         The drop in home ownership rates has                         compared to a 1 to 4 percent return on
         led to a rental boom      , so purchasing a                  a single-family home. LoopNet

         second property can be a great way to                        (NASDAQ:LOOP          ) is a great source to
         boost your finances. Rental                                   get started on research.
         investments can generate roughly 4 to
         10 percent returns, plus any rise in                   Setup: Hard

         equity; however, it can be difficult to be               Time commitment: Medium
                                                                Money required: High ($250,000+)
         a passive landlord. If you don't want to
                                                                How: Self-research
         manage tenants and handle

         maintenance yourself, you'll need to                   Ø Franchise play:
         hire a trustworthy property manager. If
                                                                     Invest in a single franchise or a group
         you want to build equity, you also must
                                                                     of successful chains, such as Subway
         purchase property in a market that has
                                                                     or Dunkin' Donuts (NASDAQ:DNKN                  ).
         strong interest in rentals and vacation
                                                                     The franchise industry is set to grow
         homes. While many online portals will
                                                                     by 1.7 percent this year       , generating up
         give you a feel for the market, you will
                                                                     to $552 billion. That trend will likely
         need to build your own
                                                                     hold, as franchising has grown every
         payback/investment model.
                                                                     year since 2010. A franchise

    Setup: Hard                                                      investment could earn you a 10 to 15
    Time commitment: High                                            percent return on your investment. The
    Money required: Medium ($20,000 to                               biggest drawback is that buying just
    $100,000)                                                        one or two will not generate enough
    How: Self-research


    Ø Commercial property:

         The approach is similar to that of rental
         properties, but in this case, you're
         buying into a one- or two-star hotel

         (think Days Inn [WYN] or Holiday Inn
         [IHG]) or a strip mall. The initial
         investment is significant, and you
          needto vet potential partners to





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