Are you searching for ways to make passive income in 2020? If so, you’ve come to the right place!
Passive income is one of the most talked-about topics among investors because it doesn’t matter how old, or young, you are, as long as you are an investor, one of your primary goals should be to create as many passive income streams as possible.
The Internal Revenue Service defines “passive income” as income that’s earned from either a business in which you do not actively participate, stock dividends, book royalties, or income from other sources that you may only have to set up one time without having actually to do any work to maintain it.
What Are the Best Ways to Earn Passive Income In 2020?
One of the best passive income ideas, and a common way to earn passive income in 2020, is by investing in stock in receiving dividends. Dividends are typically paid out by companies every quarter and they are based on the profits that the company earns, so as long as you own stock in the company, you can expect those payments to come in like clockwork.
The key to success with earning dividends from stocks all boils down to choosing the right stocks.
There’s no denying that in 2020 the stock market has been more tumultuous than ever before, so there is going to be some degree of risk with putting your money into stocks compared to years past.
Before buying stock in a company, make sure that you take the time to thoroughly investigate the company by reading their financial statements and going over their website because you want to make sure that you are entirely comfortable with the direction that company is heading in before you spend your hard-earned money buying their stocks.
Peer to Peer Lending
Another form of passive investing in 2020 is via peer-to-peer lending.
If you are unfamiliar with peer-to-peer Lending, it’s a personal loan that’s made between you and a borrower via a third-party intermediary.
With this form of investing you, you’re going to make money from interest payments on the loans but, since most peer-to-peer loans are unsecured, you face the risk of having the loan go into default, so it’s best to early make sure that you do your “due diligence” and thoroughly investigate a peer-to-peer lending website before getting involved with them.
Real Estate Investment Trust (REIT)
Another great way to earn passive income in 2020 is by investing in a Real Estate Investment Trust and with a REIT, the great thing is that you can technically be involved in real estate, including multifamily, without having to do any of the actual work yourself.
As with investing in dividend stocks, you make your money from a Real Estate Investment Trust when they pay out dividends.
There are three different REIT, passive income investments, to choose from, including mortgage REIT’s, equity REIT’s, and Hybrid REITs. Each one offers you various benefits, so it’s best to think about the type of real estate investment trust that you want to be invested in and read the REIT prospectus before investing.
High Yield CD
I’ve offered you several of my best passive income ideas for earning passive income in 2020. Still, by far, one of the best and most timeless ways to generate passive income is by investing in a high yield certificate of deposit (CD).
Certificates Of deposit have been around for generations, and it’s easier to invest in them than ever before because, thanks to the internet, you can easily choose from the best CDs around the country, select the top rate available, and enjoy a high return on your investment without even having to leave your home.
As with any other form of passive investing, make sure you take the time to thoroughly research the bank that you plan on investing in a CD with and verify that they are backed by the FDIC because this means that your principal is safe.
Last of all, but most important, one of the best ways for any investor to earn passive income in 2020 is by investing in multifamily properties.
Every investor should have a multifamily property in their investment portfolio because with just one apartment building, you can earn multiple passive income sources and when you have a property manager manage the building, there won’t be any work that you need to do yourself.
Besides the obvious financial benefits that come from owning an apartment complex, another reason to consider investing in multifamily properties is the fact that people are always going to need a place to live.
Contact Trier Capital
In 2020, more people from all generations are renting units in multifamily properties than ever before so why shouldn’t you capitalize on the demand for multifamily properties by investing in a multifamily property for the first time or save the hassle of investing in one yourself by partnering with us?
At Trier Capital, we specialize in investing in multifamily real estate that’s fueled by nine to 18-month tenant leases.
Our company will save you the time, money, and hassle of investing in multifamily properties yourself so that you can earn a regular and dependable income stream from your multifamily investments while living life on your terms.
To learn more about the services we can offer you, or to invest in multifamily, contact us today by calling (630) 229-2383 or click here to connect with us through our website.