Are you searching for more information on how to generate real estate passive income in 2020, and 2021? If so, you’ve come to the right place!
Real estate continues to be one of the best ways to generate passive income because it’s an asset that’s always in demand because people will always need a place to live so it makes sense for every smart investor to have real estate in their Investment Portfolios.
Creating multiple streams of passive income is also important for investors to focus on you, especially in 2020 because, many of the businesses that were once formally ‘rock solid’ in the business world, are no longer in existence, and this is why every investor should have multiple streams of passive income to protect their net worth from economic upheaval.
How To Generate Real Estate Passive Income
One of the great things about real estate is that there is a wide variety of ways to generate passive income, especially if you don’t necessarily want to buy and hold, or manage, real estate yourself.
Some of the best ways to get started with investing in real estate without actually managing properties yourself include investing in Real Estate Investment Trusts (REITs), Crowdfunding, and buying mortgage notes.
If you’re ready to take the plunge and start investing in real estate yourself, here are a variety of investment options for you to consider:
Single-Family Units – Love them, or hate them, single-family properties are always going to be available across the United States. This is especially true during the 2020 economy as many homeowners are currently on the verge of foreclosure and this means that we may see a huge increase in inventory of single-family homes compared to years past.
Keep in mind that if you intend to buy and hold a single-family home, owning this type of real estate asset does come with some challenges because, anytime that you have a vacancy, your rental property is not going to be generating any income until you fill that vacancy.
Don’t let the potential of vacancies stop you from investing in single-family homes. The reality is that this type of real estate is always going to be in demand because there will be renters who prefer to live in single-family homes vs living in multifamily properties.
Most people who invest in single-family rentals also feel that renters who live in single-family properties tend to take better care, or show pride of ownership in those properties compared to renters that live in multifamily properties.
Ultimately, your decision to invest in a single-family unit is up to you. Before taking the plunge, be sure to do your ‘due diligence’ and thoroughly research the property, as well as the area where it’s located before you invest.
Multifamily Units – If you’re new to this blog, you’re going to see that my preferred method for generating real estate passive income comes from investing in multifamily units.
The reason why I prefer multi-family versus single-family properties is with a multi-family property, all of my units are under one roof. This makes it easier for me to manage and maintain those properties versus owning multiple single-family homes.
Thankfully, there are a wide variety of multi-family properties available on the market today. You can invest in duplexes, condominiums, townhomes, and apartment complexes.
The sky’s the limit, but be sure to take the time to thoroughly research the area where a multi-family property is located before you decide to invest in that property. Many cities have changed in the last 12 months and they are not as safe as they once were, or economically sound, so it makes sense as an investor to take the time to thoroughly research a new area before you decide to invest there.
Another important thing to remember when investing in multifamily units is that you should hire a property management company to professionally manage those multi-family properties for you.
This step will save you the time, money, and hassle of managing that property yourself so that you can focus on earning passive income from that property and direct your time, effort, and energy elsewhere towards growing your Investment portfolio.
Commercial Buildings – Another excellent way to generate real estate passive income is by investing in commercial properties, especially Class A, Class B, and Class C Office Buildings.
In non-pandemic years, you should also consider investing in retail establishments, or shopping malls, but, since covid-19 has largely been responsible for destroying retail in the United States, it may be wise to postpone investing in retail establishments for at least the next two to four years.
Mixed-Use Developments – Even though retail has largely been killed in 2020, it continues to thrive in mixed-use developments.
These are projects across the United States that are a combination of residential, retail, office, and even industrial complexes. With these types of buildings, you have the benefit of enjoying a variety of passive income streams from one building so it may be wise for you to consider adding at least one or more mixed-use development to your portfolio income properties.
Self-Storage – As I’ve written in previous blog posts, self-storage continues to be a huge money-maker in 2020 and it doesn’t show any sign of slowing down. Why? The answer is simple, the average person in the United States typically has one of everything, including large televisions, and pieces of furniture.
If you’ve never considered investing in a self-storage facility before, the good news that they are available all over the United States. Many homeowners and renters, lack adequate storage in their homes and are open to spending an additional $50-$60 per month to rent a self-storage facility so why shouldn’t you profit off the demand for self-storage?
Mobile Home Parks – Mobile home parks can be found everywhere across the United States, especially in large and small cities alike.
The key to success with investing in a mobile home park all boils down to management. You want to make sure that your property management pays close attention to the needs of your tenants and properly maintains the mobile home park that you own because this is going to increase pride in ownership for where your tenants live and make them want to renew their leases each year.
Contact Trier Capital
At Trier Capital, we are a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
To learn more about the benefits that come from partnering with us, contact me today by calling (630) 229-2383 or click here!