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The stock market has had a lot of red days recently, and there’s speculation that it may have more red days to come. This is why more stock market investors are searching for information on how to create passive income in real estate.

It’s understandable why some stock market investors are considering real estate right now because red days only mean heavy losses, and possible margin calls.

Thankfully, investors who are tired of the wild ride of the stock market can get off that ‘roller coaster’ and stabilize their net worth by investing in real estate.

In this article, I will provide you with a wide variety of solutions that you can use for creating passive income in real estate.

How To Create Passive Income In Real Estate – 7 Steps

Solution #1 – Invest In A Real Estate Investment Trust 

The first method that you may want to consider for generating passive income in Real Estate is to invest in a Real Estate Investment Trust (REIT).

With a Real Estate Investment Trust, you will be earning a dividend from your REIT on a monthly basis and this will enable you to build stable cash flow from real estate without having to physically hold the property.

If you decide to search for a Real Estate Investment Trust, keep in mind that due diligence is critical. You want to research the management team, review their track record, and confirm how they are compensated, before you decide to spend your hard-earned money in a Real Estate Investment Trust.

Solution #2 – Invest In Mortgage Notes

The second way to get started with earning passive income in real estate is to invest in mortgage notes.

This method of real estate investing is not as common as house-flipping or investing in single-family homes but it’s certainly ideal because, with a mortgage note, you also don’t have to physically touch the property or manage it.

Once you invest in a mortgage note, you effectively become the bank, and the borrower will pay you every month so it’s possible to build a portfolio of real estate and earn passive income from those properties without having to manage them yourself.

Solution #3 – House Hacking

House hacking is often discussed by Real Estate Investors all over the Internet, and for good reason, it’s by far one of the easiest ways to get started with real estate investing because, you can effectively purchase a 3 to 4-bedroom house and rent one, or more bedrooms out on a monthly basis and earn income from your tenants.

Keep in mind that with house hacking, not only are you going to be a roommate, you’re also going to be a landlord too, so unless you are not the type of person who can balance a business and personal life with your tenants, you may not want to choose this option.

Let’s say that you don’t mind sharing your house with roommates, if that’s the case, you may want to consider moving forward with house hacking, especially since in today’s rental market, it’s possible to earn a minimum of $500 a month rent just by renting out one bedroom in your home.

If you want to take house hacking a step further, you should consider investing in a duplex, triplex, or fourplex and live in one of the rental units in that property. This will give you the ability to eliminate your mortgage since your tenants will be paying the mortgage on that property every month.

Solution #4 – Rent Land To A Tiny Home Owner

Over the last 10 years, tiny homes have quickly become very popular across the United States because they offer people who invest in tiny homes the ability to simplify their lives since most tiny homes are under 500 square feet.

The key to success with tiny home living is having a place to park the tiny home and it’s gotten more difficult for some people who own tiny homes to find places to park them.

This is where you come in, if you were to buy land in a city or state where more people are investing in tiny home, you could rent out that land to time home owners.

Solution #5 – Self Storage

Self-storage is another excellent way to earn passive income from Real Estate because in 2020, most people have overflow items in their homes and if they can’t fit those items into closets, or garages, they’re going to be renting storage facilities to keep their overflow Items.

The great thing about self-storage is that most cities in the United States have at least one self-storage facility so it’s entirely possible to invest money in an existing self-storage facility or you could purchase land near a major city and develop your self-storage facility.

If you decide to build your self-storage facility, you should consider building self-storage units that vary in size because you want to have the ability to rent units to people who need small, medium, large, and extra-large storage units.

Besides building storage units in multiple sizes, you should also consider paving part of the property that your self-storage facility sits on. This will enable you to rent spaces inside your self-storage facility to people who need to store their extra vehicles, motorcycles, boat, or RV every month.

Solution #6 – House Flipping

If you watch TV shows like Good Bones or Flip or Flop, you know that house flipping is one of the most popular ways to earn passive income from Real Estate but, the thing that most television personalities don’t tell you that house flipping takes a lot of work.

Unless you hire a crew to work on a house for you, it’s very easy to spend up to 40 hours per week working on one property before you flip it.

Remember that the whole idea behind passive income is to not work more than a couple of hours per month because, if you’re putting 4 hours or more per month into that income stream, it stops being passive income, and turns into a second or third job.

The key to success with house flipping is to assemble a team that you know, trust, and can call to work on your properties after you purchase them so that you could spend time managing those projects instead of working on them yourself.

Solution #7 – Multifamily Investing

Last of all, but most important is my preferred method for earning passive income from Real Estate, and that’s investing in multifamily properties.

The reason why I say I prefer multifamily investing over house flipping, or any of the other passive income strategies that I’ve mentioned in this article is because multifamily properties are easier to scale and there’s more demand for them across the United States

Despite economic uncertainty, and changes in cities across the United States, multi-family properties are more in demand than ever before because our country has become a nation of renters.

This means that we have multiple generations of people who need a quality place to live and for the real estate investor who’s invested in multifamily properties, they can earn a comfortable living from renting to tenants who may decide to stay in those units for years.

Contact Trier Capital

At Trier Capital, we know that building a portfolio of multifamily properties takes time, especially if you’re doing everything yourself. Sadly, this is why some investors end up selling their property and quitting multifamily investing after less than one year. Don’t let this happen to you!

Instead of investing in multifamily properties on your own, why not partner with my company, and benefit from our trusted team of multifamily investors so that we can source, acquire, and manage your multifamily properties for you?

Now is an excellent time to generate wealth from multifamily properties. To learn more about the services that we can offer you, contact me today by calling (630) 229-2383 or click here to connect with me online.

Erik Hatch

Erik is currently invested in projects in Florida, Texas and Kentucky totaling $79 Million. He is an accomplished leader who motivates and inspires action while at the same time, is grounded in business metrics and information that drives successful businesses.