What are the best passive income streams for 2020?
This is an excellent question to ask, especially right now, when the stock market has been experiencing consistent daily losses and many investors who took advantage of the wild ride in the stock market during 2020 are losing a lot of money right now.
If you’re concerned about diversifying your Investments, this article will provide you with a list of the best passive income streams for 2020 so that you can protect her net worth without having all of your eggs literally in one basket.
Passive Income Stream #1 – Selling Digital Products
Since you’re reading this article, I’m going to also assume that you’re skilled at utilizing the internet and have no problem finding the information that you need online. This is why the first passive income stream that I’m going to encourage you to create is digital products.
By digital products I mean eBooks and digital courses. I encourage all investors to put their money into digital products because you can create an eBook, or a course, one time and continue earning passive income from the sales of those digital products for years to come.
Don’t have any experience creating eBooks or courses? No problem! The great thing about the internet is that you can easily connect with a freelancer and have somebody write an e-book or a course for you that you could sell under your name.
If you do have some experience in your field, you should consider taking the knowledge that you currently have and turn that knowledge into an eBook, digital course, or a membership website.
Most people think that the knowledge that they have is useless but, the reality is that there’s always going to be somebody out there who is interested in benefiting from your knowledge. This is especially true if you are skilled at solving a problem, or if you have knowledge in a particular niche.
Passive Income Stream #2 – Dividend Stocks
Dividend stocks are by far one of the oldest ways to earn passive income, especially in the United States where companies have been paying out dividends to investors for decades.
Even though the stock market is currently experiencing a bumpy ride right now, you should consider investing in dividend stocks because this is another way that you can create passive income by investing in something one time not having to do any work yourself.
Once you invest in dividend stocks, you should also continue making your money work for you by investing in a Real Estate Investment Trust. A REIT is an excellent way to get started in real estate without having to do any actual work yourself and the great thing about this type of investment is that it functions the same way as a dividend stock.
Before investing in a real estate investment trust, make sure that you take the time to do your due diligence and research the company that you’re thinking about investing with before you spend money with them.
Passive Income Stream #3 – Rental Income
My favorite method for generating passive income is rental income, specifically investing in multifamily properties. The reason why I favor multifamily properties vs. single-family properties is with multi-family, you have more doors under one roof and this increases your opportunity to scale your income compared to having your multiple single-family residences in any given city or state.
The key to success with investing in multifamily properties is all about choosing an up-and-coming area that’s showing signs of improvement economically, has a low crime rate, excellent school districts, and plenty of things to do.
I believe that multifamily real estate are going to continue to be a consistent way to generate passive income for years to come because, in the United States, the renter population continues to grow.
In 2020, we’re seeing multiple generations of renters enter the market, and this is not expected to change, especially as real estate in the United States continues to be an asset that many people are unable to purchase.
With multi-family properties, it’s easier to get started then you possibly could imagine. You don’t just have to invest in an apartment building, you can invest in a duplex or fourplex, secure the property with an affordable FHA loan while living in one of the units yourself. Or you can invest in a small apartment building and start earning passive income from that building right away.
Regardless of the type of multifamily property that you invest in, make sure that you hire a property management company right away.
Following this step will save you the time and hassle of attempting to manage your property yourself so that you can focus on growing your portfolio of income properties instead of getting stuck on all the day-to-day maintenance responsibilities as many investors do.
Besides investing in multifamily properties, you can also generate passive rental income by investing in self storage.
I’ve talked about investing in self-storage units in previous blog posts because self-storage is expected to grow in the coming years. Why? The average person these days has two of everything and doesn’t think twice about paying an additional $50 to $60 per month the store those items in a nearby storage facility.
If you don’t want to invest in Self Storage, you should also consider investing in mobile home parks as well. Mobile home parks are an excellent way to generate passive rental income because they offer renters the flexibility and convenience of living in their own homes while living in an environment where the water, sewer, trash, and landscaping are taken care of for them.
Besides Self Storage & mobile home parks, you should also consider investing in land Lots, especially in areas that are considered to be up-and-coming because you could spend Little money investing in a land lot and have that land generate a huge return on your investment when you decide to sell it.
Contact Trier Capital
At Trier Capital, We specialize in doing all the hard work to find and acquire ideal properties, and then overseeing asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.
If you’re interested in enjoying the financial rewards that come from investing in multifamily, contact us today by calling (630) 229-2383 or click here.