Are you interested in earning passive income through real estate but, you’re wondering if it’s still possible to earn consistent income from real estate investing in 2020?
Thankfully, the answer to this question is yes.
You can still earn passive income through real estate investing even though it’s been a tough year for real estate investors due to the coronavirus pandemic, job losses, and the start of another economic recession.
How To Earn Passive Income Through Real Estate
Despite the economic challenges that we’ve seen in 2020, real estate continues to be a great investment. Why? The answer to this question all comes down to one word: demand.
People are always going to need a place to live regardless of what’s happening in the world, so you can always count on there being consistent demand for your rental properties regardless if the jobs market is upside down or if we are going through another economic recession.
More people than ever before in 2020 are renting properties, instead of buying, compared to previous generations where our parents and grandparents tended to purchase homes as they got older.
Times have changed in 2020 and we’re seeing more generations favorable to renting including older Generations like Baby Boomers. This isn’t expected to change anytime soon as buying a house for many people has become unaffordable since most home buyers have difficulty even with saving 3% for a down payment on a home.
Besides the economic need that many generations have to rent, renting is also favorable because anyone who rents a property doesn’t have the same responsibilities as a homeowner in terms of maintaining their rental property.
When it comes to multi-family properties, life gets even easier for renters because a typical multi-family property doesn’t have any yard space at all. On top of that, all exterior maintenance to the property is handled by the landlord or property management company so all renter has to do is pay their rent consistently every month and enjoy living in the property.
If you’re a fan of this blog, you know that my preferred method for real estate investment is investing in multifamily properties. Multifamily properties are ideal, in my opinion, for every investor because of their economy of scale.
With a multi-family property, it’s easier to manage multiple units under one roof then it is to manage multiple single-family homes across a city or state. The cost for managing and maintaining multifamily properties is also more affordable than single-family properties too so these are all reasons to consider investing in a multi-family rental property.
When you invest in a multi-family property, there is a wide variety of ways that you can earn Passive Income Through Real Estate from one property including offering your tenants additional services like on-site laundry, premium parking, Wi-Fi, laundry services, and more.
Once you invest in your first multi-family property, start brainstorming and think of all the ways that you can offer value to your tenants because this will translate into you being able to grow your passive income from the multifamily property that you own.
What Other Forms Of Real Estate Should You Invest In?
Besides multifamily properties, and single-family rentals, what other types of real estate should you add to your Investment Portfolio?
This is a good question to ask! Every investor should be focusing on growth, especially in this day in age because as interest rates remain historically low, there’s never been a better time in recent history for investors to build generational wealth than right now.
Some of the other real estate Investments that you should consider adding to your portfolio include the following:
Real Estate Investment Notes – A real estate note is an IOU that’s secured by the property. Before investing in real estate notes, you should ask yourself the following questions:
- Is the note non-performing or re-performing?
- What was the original balance?
- What is the amount of payments?
- How many payments are left to make?
- Is there a balloon payment that’s due?
- Is the note fully amortized?
- What is the interest rate?
Buying real estate investment notes is a great way to build wealth on a passive basis because, since you’re buying the paper, you’re not going to have to be involved with managing the property yourself. You don’t have to leave the comfort of your home or office, you can easily invest in notes from anywhere in the world and earn passive income from those notes every month.
Real Estate Investment Trusts – Another excellent way to build wealth passively is by investing in a Real Estate Investment Trust (REIT). This type of investment is very similar to investing in the stock market because a real estate investment trust pays out dividends on a quarterly or annual basis.
Before investing in a real estate investment trust, always be sure to do your due diligence because you want to have confidence in the company that you are investing in.
Crowdfunding – Besides note investing, and real estate investment trusts, another excellent way to get started with earning passive income to real estate investing is by investing in property via the crowdfunding method.
This method of real estate investing has been around quite literally since the beginning of time because it’s one of the oldest concepts of people pooling their money to invest in a property, only in this day and age it’s all done online.
In 2020, crowdfunding has never been easier thanks to websites like Fundrise, which enable investors anywhere in the world to Passive Income Through Real Estate.
Don’t Wait Another Year To Invest In Real Estate
After reading this article, I hope that you walk away inspired and encouraged to get started with investing in real estate, especially if your goal with real estate investing is to earn passive income.
Yes, it’s possible to earn multiple passive income streams, even with one real estate investment.
The trick is to get started with purchasing your first property because you can keep watching the real estate market, or mortgage interest rates, but the reality is that that first property will never be in your Real Estate Investment Portfolio until you pull the trigger and purchase it.
Thanks to recent interviews with Jerome Powell and Steve Mnuchin, we know that mortgage interest rates may stay historically low for at least the next five years. This creates an excellent window for every investor to add real estate to their investment portfolios.
Don’t waste another year thinking about investing in real estate, or watching the markets. Get inspired, create a plan, and invest in your first property this year because there may never be a better time than right now for you to purchase your first multifamily property.
Contact Trier Capital
Trier Capital is a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
Finally, you can invest in tax-advantaged real estate without having to deal with the nuance or complication of purchasing and managing a property yourself.
Contact us today by calling (630) 229-2383 or click here to connect with us online.