Are businesses such as Storage Units, Car Washes, & Laundry Mats Good Investments?
I am 22 years old and finishing up college. I have a boat load of college debt however I dont want student debt to stop me from pursueing investments. I am currently a finance major and I work at an investment management firm, so i am learning a ton. I am mostly working and going to school for knowledge and experience to apply in real world business instead of a normal 9 to 5 job.
I have set up the goal to obtain either a small rental property or small business investment that will generate passive income a year from now. I am very attracted to businesses like car washes, storage units and laundry mats. For those of you EXPERIENCED in business, how do you feel about these businesses for a beginner in the investment arena?
Over this next year I will be workign on establishing a well rounded budget, getting rid of my consumer debt besides student loans (about 4k) and saving ,000 between my fiance and I for our first investment. We are also spending as much time as possible researching and learning as much as we can about rental properties, and investing. At the same time I am currently in the process of re-building a family business, so a lot of valuable experience is coming from this as well.
How does this plan sound? How do you feel about the 3 small business investment choices I mentioned?
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I would say yes, especially in a high traffic area.
Remove the debt first.
It is impossible to answer your
You are going in WAY too many directions. Pick ONE, and invest in what you know. You become wealthy by being a specialist first.
None of the three businesses you mentioned are passive income. Laundomats only make money if you do the equipment maintenance and repairs yourself. Storage units have to be managed on site, or else you end up with a toxic waste dump inside of one of them. And people are scaling back, not buying more crap to put in storage.Car washes definitely require attention, and lots of capital. Not sure how well they will do if recession gets worse.
You have not said if you have all the other stuff you need, like household goods, six months of emergency cash, insurance as appropriate, and you do those first. Assuming those are handled, with an $8,000 first investment and a $500 ongoing cash flow to support it, you need to be very careful. My sense is that rental properties are going to be plentiful and price-competitive until all the houses are foreclosed on and resold If you know the rental business and your area well, ignore my comments. Local areas will vary, as will the right properties even in a weak area.
Read "The Richest Man in Babylon" this week.
any business that can generate passive positive income is a good investment.
If you can build enough capital to purchase investments in a year, that will be very good for you. Just remember, concentrate on POSITIVE cashflow investments, even if people tell you thats impossible. they are rare but available.
also i recommend the Richdad series of books, by Robert Kiosaki,