Alternatives to property-thoughts on buying into small businesses as a silent partner?
I’m looking at alternatives to property. Lately I’ve been browsing business-for-sale listings on brokerage sites (ABC Business Sales etc.) to see what’s out there.
Personally, aside from picking up one more rental for income, I don’t think hoarding property is the best way to grow wealth anymore. There’s only so much room left for capital gains. Startups feel too risky; the failure rate is high and I’d rather not bet on an unproven idea.
What does interest me is buying into stable, established businesses like a dairy/four square, a clothing shop, a car garage, a pharmacy or medical centre, all to invest in as a silent partner. These are proven, cash-flowing businesses rather than new ventures, so the risk feels closer to property than to a startup. Gains are long-term rather than quick, but you get consistent income in return, it seems like a fair trade?
Obvious downsides: the business could still fail given record small business closures, and exit/liquidity is much slower than property or shares. Cant just list it and sell.
Some context: I work in healthcare with decent savings. Once we’ve locked in our first rental, I want to diversify into businesses for multiple income streams alongside dividends, aiming for FIRE eventually. One BIG catch is that I have zero business experience, so I’d be going in green. I would be very willing to study somethings first from any resources people recommend!
Would love to hear the thoughts of this community! Is this reasonable or am I missing something? Are there any other investments that might be an alternative to this?
TIA!