The proper way to view real estate as an investment opportunity is to look at the potential for rental income. It's possible to earn a living as a landlord, but it could be a significant amount of work identifying the right properties, the right locations, and the right tenants, and you're relying on some luck in terms of timing. There's always the risk of a good tenant becoming a deadbeat. With no mortgage on the properties, though, the formula for long-term profit is much nicer, and it can be done outside of the finance industry.Peer-to-peer lending can provide good returns if you happen to live in a state that has relaxed regulations. This is still a new industry, and it's clearly designed to sidestep the mainstream financial industry. Peer-to-peer lending cuts out the middleman, and that middleman happens to be a very powerful industry. Bank executives don't publicly acknowledge peer-to-peer lending as a threat, but the grassroots industry is a growing highway of financial transactions without Wall Street toll-takers. Don't believe that no one is getting rich off the plight of people looking for better rates for loan consolidation, as many peer-to-peer borrowers are. Prosper and Lending Club are backed by venture capital firms that, while they aren't public, are certainly designed for profit. For me, the biggest drawback of peer-to-peer lending is that the investments aren't liquid. Invest in the stock market, and if you need the money in a pinch, you can sell your stocks and get the real value of your wealth back in cash minus transaction fees and the spread between the bid and ask prices. With your money tied in peer-to-peer loans and call your investment before the loans (or the basket of loans) have reached maturity, you may have to settle for receiving back less than you invested. This same is true if the value of stocks decline at an inopportune time, but I see the lack of liquidity as a problem people tend to ignore, particularly when they compare peer-to-peer investing with the low returns of savings accounts. All of these options focus on using the money you already have to create more wealth. This type of “passive income” is all the rage. Letting your money do the work for you is much more appealing for many people than earning money with their labor. The top 1 percent in terms of wealth in this country earns most of its income through investments, not from a salary. Yet, one of the most successful method of building a financial future for yourself is starting a successful business. It requires time and effort - more than you might put into a salaried job - and it isn't for everyone. It's risky, and there's a significant likelihood of losing money with a new business, but the rewards can far outpace investing in the stock market with 15 percent of your salary. Will you try to avoid the stock market in your investing plans? My impression is that most Consumerism Commentary readers see an overall pullback from the stock market as an opportunity to find good investments when fewer people are looking. I'm not sure how well that approach will play out, though, with institutional investors and computers running high-frequency trading programs ruling the market, but it's nice to think that any downturns today provide great opportunities over the long term. That's what I'm still counting on.