Investing in Software

Another idea I came across in my constant research on creating residual income is to buy software or apps that people have made and are still generating income.  There are a couple of sites that have been set up as a clearinghouse for people who have created apps and are selling them to investors.

Some of these apps are being sold for as low as $500.  Many of them range, however, from $1,000 on up to $50,000.

The key to making a good investment in this type of product is to make sure that the software or app is still being used.  You can check this by analyzing the data on Google analytics and through the website that is selling the app. 

By KROMKRATHOG, published on 27 April 2013
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However, even if the app is not making any money at the moment the question is has it made money in the past and what would it take to get the app to make money in the future.  Just like Warren Buffet's approach to investing in companies you can buy a company with a strong idea and balance sheet but is not performing based on temporal conditions. 

Sites to buy apps:

http://www.apptopia.com/

http://www.sellmyapplication.com/

Direct Real Estate Investing

If you've been following my blog you know that I've been a big fan of ARR which is a real estate investment trust.  Real estate has definitely hit a bottom and is on its way back up.  That means anything related to real estate (Home Depot, Lowes, Toll Brothers, Pulte and most of the REITs) will be headed up soon if they haven't already.

By watcharakun, published on 15 November 2011
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Another way to play real estate is to actually own it.  I’ve found a new service that similar to crowd-funding, allows you to invest in the real estate market and actually own part of a loan.  This type of investing is what the big boys have been doing for a long time but the small players haven’t had access to it.  Now it’s available for the smaller investor and is giving even more returns than 401Ks and retirement accounts.  Plus it’s safer because it’s tied to an actually property.  Full disclosure: I’ve signed on as an affiliate. 

I highly recommend checking out this option for investing in real estate. 

You can check out my affiliate page and if you want more information fill out the email form on the side.

Here’s my page:  http://privatemoneyexchange.org/aff/williamsmithwes

For Beginners

If you don’t have a lot of money to trade (which is most of us) start out small and learn how things work.  You can start with as little as $100 but I suggest going with $500 to $1,000.  Now before you trade a dime you should spend at least 2 weeks to a month trading paper money on Think or Swim from TD Ameritrade.  It gives you a handle on how to place a trade, what things mean, and how not to make major mistakes.  I suggest doing your actual trading on Trade King or any other low commission site because TD Ameritrade’s commissions make it pointless for small investors.  Its nigh impossible to make a profit when your commission price is $10 a trade which means it will cost $20 to get in and out of a trade.  That’s my profit horizon on some stocks.

The goal is to keep it simple.  I start out with saying I’ll make $20 a day on one trade and even if my profit is $8 I still made money.  

Disclaimer: I am not an endorser of any trading platform I just found out which platform worked best for me and was a good value for the money.