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Maybe you’re looking to diversify your investment portfolio, or maybe you’ve done your research into real estate investing and just realized you don’t have the time and energy required. Real estate investing is almost never truly passive, and it is not immune to problems like reduced cash flow during between-tenant periods.
Whether you are a seasoned real estate investor looking for additional revenue streams or you’re looking for opportunities that are less hands-on but still lucrative, these are the top alternative investments to consider in 2024.
1. Automated Teller Machines (ATMs)
It may sound surprising in the age of digital payments, but cash is still king. You may have read about the pandemic killing off cash, but this is actually far off from what’s really happening.
Cash usage did experience a significant dip during the pandemic when people were wary of touching physical money. It is also true that cash as a method of payment is not preferred by younger people (18-24) or the wealthy, who prefer to use credit cards.
But here’s another thing: While cash usage may be declining, cash holdings are not. In fact, according to recent research, average cash holdings in the U.S. have increased by $5 per person since 2021, including in younger age groups. People like having cash as a backup method of payment—which means they need ATMs.
ATMs are a great investment opportunity because they are always in high demand by people who like having cash. The average ATM is used 300 times per month, with the average amount per withdrawal $40. Given that the average ATM surcharge is $3.50 and this money goes directly to the owner of the unit, you’re looking at $1,050 per month in gross revenue from just one ATM. Now imagine you own hundreds or even thousands of them.
But the beauty of investing in ATMs does not end there. If ever…