Debt Levels : As a general rule, investors should first focus on reducing their debt levels before dedicating any significant amount of capital to an income producing investment. Investors who have a low risk tolerance will have to be comfortable with lower returns. Investors who want to achieve a higher return will have to be comfortable with more risk. Annual Return Objectives : Return is closely correlated with risk. Investors should consider the amount of capital available to invest and choose an option that is a good fit for it. Available Capital : Some investments have a large minimum investment requirement ($25,000+) while others can be purchased for a much smaller amounts. So, investors should consider their own time horizon and choose an investment that is suitable for it. But, this often means tying money up for five to ten years. Time Horizon : The opportunity to earn the most income comes over the long term. Higher risk equals higher return, but it also means more volatility. Each investor should consider their own appetite for risk because it impacts the achievable returns. Risk Tolerance : As a general rule, income investments are at the lower end of the risk spectrum, but that doesn’t mean they are risk free. To help narrow down the choices outlined in this article, investors should first think about six things: If you are an accredited investor and would like to learn more about our current investment opportunities, click here. 
We like this asset because it delivers returns in the form of income and growth. By the end, the hope is that readers will be able to identify one or two investments that interest them.Īt First National Realty Partners, we specialize in the purchase and acquisition of grocery store anchored retail centers. We will describe what each idea is, why it produces income, and the risks and benefits of allocating capital to it. A diversified portfolio usually contains both.īut, in this article, we are going to review eight ideas for cash flow investments. At the other end of the spectrum, income investments deliver returns through periodic distributions, but may not experience as much growth.
For example, if an investor buys a stock at $10 and sells it 15 years later for $40, they have experienced significant capital growth. Growth investments, like stock and private equity – deliver returns through price appreciation over the long term. At a high level, investment returns can be grouped into two buckets, growth and income.
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