Are you searching for information on how to create more passive income streams in 2020? If so, you’ve come to the right place.
Even though 2020 has been a difficult year for most people, the goal of creating multiple passive income streams hasn’t changed for investors.
Creating as many passive income streams as possible has become more important than ever before for investors because the pandemic and recession have shown us that if nature, or a sluggish economy, takes out one of an investor’s passive income streams, it’s always best to have other streams bringing in income.
In this article, I will provide you with a list of passive income streams that you should consider adding to your portfolio of passive income streams in 2020 and beyond.
One of the most popular forms of passive income over the last 10 years is house hacking. This refers to the process of renting out one of the vacant rooms in your home to a qualified tenant. This is by far one of the easiest ways to earn a passive income because of the simple fact that there’s nothing that you have to do to earn that income every month.
Depending upon the rental market where you live, you can easily earn an additional $500 to $1,000 per month in passive income by renting out a room in your house.
The only downside is that house hacking does require some work initially. You have to take the time to find the most qualified tenant possible, otherwise you could end up renting to somebody who could turn out to be a problem.
Another great way to generate passive income in 2020 is by investing in dividend-yielding stocks.
Investing in dividend-yielding stocks is one of the best ways to earn passive income because once you have those stocks in your portfolio, you can expect dividend payments every quarter since companies pay out dividends from their profits.
Do you want to earn more dividends from your stocks? If so, the easy thing to do is of course purchase more shares of stock in a company that you would like to receive dividends from because, the more shares that you own, the higher the payout you can expect to receive every quarter.
The downside of investing in dividend stocks is that it’s easy to inadvertently choose the wrong company so it’s best to do your due diligence before investing in dividend stocks and take the time to thoroughly research a company before you invest in their stock.
Create Passive Income With A Real Estate Investment Trust
If you’ve been following this blog for a while, you’ll know that I have written about real estate investment trusts in recent months. The reason for this is because REITs are an excellent way to get started in owning real estate without having to spend the time or hassle that comes from managing a property yourself.
What’s great about being invested in a real estate investment trust is that like dividend stocks, REITs also pay out dividends every quarter. There is some risk involved though because if a REIT doesn’t generate enough income during tough economic times, they could choose to not pay out any dividends.
As with investing in dividend stocks, you have to take the time to thoroughly research a Real Estate Investment Trust to review the history of the company before you invest your money with them because you want to have complete confidence that you’re going to be investing in a company that will meet their commitment to pay out dividends to their shareholders every quarter.
Besides investing in a real estate investment trust, dividend stocks, or house hacking, you may also want to consider investing in high-interest CDs, become a peer-to-peer lender, or investing your money into high yield savings accounts.
If you’re comfortable with working from home on the Internet, you may also want to consider getting started with affiliate marketing, or the process of sending traffic to a company’s offer on the internet and getting paid a commission any time somebody purchases from your affiliate link.
Affiliate marketing does take some initial work to set up, as any other passive income stream does, but once you get it set up, you can expect to consistently earn money from your affiliate marketing efforts every month.
Besides all the passive income ideas that I’ve mentioned in this article, there are many more for you to consider including ideas like advertising local businesses on your vehicle, selling Antiques, Collectibles or other on websites like eBay, starting a t-shirt business and so much more.
Invest In Multifamily Real Estate
Last of all, but most important, my favorite way of earning passive income in 2020 is from investing in multifamily real estate.
Why multifamily Real Estate? The answer is simple; everyone is always going to need a place to live, regardless of their age, race, sex, location, or the shape that the economy is in.
Housing will always be in demand so if you don’t currently have a multi-family property in your Investment Portfolio, you should take the time to consider adding one or more multi-family properties now. You want to be in the position to take advantage of great prices and affordable mortgage interest rates if you plan on financing your first multifamily property.
The key to success with purchasing a multi-family property it’s to thoroughly research an area before you decide to purchase a property there.
Ideally, you want to make sure that the area is up and coming, this means that the area is enjoying job growth and there are a wide variety of other things there which show that it will be a top relocation destination for years to come.
A prime example of a top relocation destination is Austin Texas. Over the last five years, Austin has been one of the premier destinations in the United States for people of all ages, including young professionals, because this area enjoys a low cost of living, low taxes, great infrastructure, excellent schools and there’s plenty of things to do in the area.
Contact Trier Capital
Are you interested in learning more about how to get started with investing in multifamily properties without having to spend the time, money, and hassle of doing it all yourself? If so, I invite you to contact me to learn more about the services that we can offer you.
Our company does all the hard work to find and acquire ideal properties, and then oversee asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.
To get started with learning more about the services that we can offer you, contact me by calling (630) 229-2383 or click here to connect with me online.