Iit has been a difficult year for S&P500 — and the people who invested money in it. The index is down more than 23% since this article began to be written. And given that stocks have been really slow since the start of 2022, we don’t know when things will turn around.

If you’re unhappy with the state of your stock portfolio, you’re not alone. The good news, however, is that you have options for investing your money outside of the stock market. And one option is to look at is real estate.

A good way to diversify

There is absolutely nothing wrong with establishing an investment strategy that relies on investing your money in a broad market index like the S&P 500. After all, the S&P 500 has a track record of strong performance and rewards for a long time the investors who stick to it.

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But right now, stocks are in freefall. And if you’re looking to diversify your portfolio, it’s best to consider real estate.

In this regard, you have options. But one route you might want to consider taking is buying an income property.

The advantage of owning an income property is that you will have several ways to earn money. First, you can charge rent to your tenants and use that as stable income to build your portfolio or offset the maintenance costs of your income building.

Right now, rental demand is high because homes have become expensive to buy and finance, so if you have the capital, you could do just fine. Also, if you hold an income property for many years, chances are its value will appreciate over time, similar to holding S&P 500 stocks or index funds for many years. is a great way to earn money.

Another option to diversify into physical real estate? Rollover properties. This allows you to enjoy a return on your investment quite quickly. However, house flipping comes with risks that you need to be aware of.

First, your costs could be higher than expected, which could reduce your profits. Second, if you pick the wrong market, you might struggle to find a buyer (although that’s really less of a concern these days, with extremely slow housing inventory and high buyer demand).

If you’re considering buying a messy home, make sure you don’t overpay and research your remodeling costs ahead of time so you don’t lose your mind. You may even want to team up with a more experienced house drummer to benefit from their input and expertise.

Look beyond the S&P 500

Investing in the S&P 500 is a great long-term bet. But right now the index is underperforming and you may be keen to put your money elsewhere. If so, physical real estate is an option worth considering.

While the stock market is down right now, home values ​​are anything but. And that means there’s a world of opportunity to make money in real estate, whether it’s short-term, long-term, or both.

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