Real estate passive investing is one of the best ways to build wealth, especially in 2020 because while other assets may be declining in value, real estate continues to appreciate.
If you’re looking for tips on how to get started with investing in real estate, or you’re interested in learning how to make money passively from it, this article will provide you with several traditional and non traditional tips for getting started with real estate passive investing.
Tip #1 – Invest In Raw Land To Enjoy Real Estate Passive Investing
Raw land is the first way to get started with real estate passive investing because it can be used for anything from residential developments, farmland to commercial purposes, or it can be used for its national resources including water or mineral rights.
The key to success with investing in raw land is to first verify how it’s zoned because the zoning of raw land is very important. After all, this is what determines how the land will be used in the future.
Raw land can be zoned for a wide variety of purposes including commercial, industrial, multifamily, residential, public, semi-public, open space, parks, agriculture, and right of way.
Besides the wide variety of purposes that raw land can be used for, another great reason to invest in it is the return on investment.
Because raw land is scarce, the longer you hold onto it, the greater the chances are that you’re going to be able to get a better return on investment, especially if the land that you own is in a part of the country that’s experiencing huge growth.
A good example of a part of the country that’s been actively developed over the last 10 years in Austin Texas. The Austin area has grown close to 40 percent in the last 10 years and anyone fortunate enough to invest in Central Texas land during the early 2000’s has seen a nice return on their investment.
Investing in raw land might be something that some investors balk at because the average investor is conditioned to investing in real estate that has a commercial or residential structure on the property and raw land typically has no structures on it.
The good news about investing in real and is that when an investor chooses to purchase it, they will also enjoy the benefit of having little to no maintenance that land because there are no tenants or other issues or traditional property management.
Depending upon the location of land, all the owners of that property may have to do is hire someone to mow the property and remove trash or debris every quarter.
Aside from this, once an investor purchases raw land, the next thing that they have to do is sit back and enjoy Real Estate Passive Investing while they decide how that land should be used or when it should be sold.
In 2020, there are a wide variety of purposes and ways to Make Money Passively with raw land besides residential and commercial use. Interest in raw land has spiked over the last 10 years as more people have moved their homes off-grid and are purposely choosing to move on to raw land rather than living within city limits.
Tip #2 – Non-Traditional Ways To Invest In Real Estate
Let’s say that you didn’t want to invest in raw land, or you weren’t interested in investing in real estate that included an actual residential or commercial property.
The good news is that there are other non-traditional ways that you can Real Estate Passive Investing including the following: real estate investment trusts, crowdfunding, and real estate notes.
With any of these options, it’s easy to get started with real estate investing without having to physically hold property or hire property managers to manage those properties for you.
Tip #3 – Invest In Multifamily Properties
Another great way to get started with real estate passive investing is to invest in multifamily properties.
Thanks to multifamily properties, you earn more passive income than what you would earn from investing in residential homes because, with an apartment complex, the more doors that you have, the more income you can expect to earn from that property.
Multifamily properties are in greater demand than ever before because housing costs are at their all-time high and it’s more costly for a home buyer to get into a home versus renting.
The key to success with choosing a multi-family property for Real Estate Passive Investing is to invest in an area that can be classified as up and coming.
This means that companies in the area are hiring, it’s a safe place to live, and there’s plenty of things in the area to attract people like shops, stores, restaurants and things to do.
Even though you may find a multi-family property that’s in a great location, and you’re excited about the prospect of Make Money Passively, you should also do your due diligence. This means that you need to take the time to have the property thoroughly inspected and you should also review the financials for the property to confirm that it is indeed earning the income that the owner of the property claims that it’s learning.
Contact Trier Capital
In this article, I provided you with a bird’s-eye view of how to get started with real estate passive investing. If you do some research on the internet, you’ll see that there are many more ways that you can make money passively by investing in real estate but, as a long-time investor, I have found that one of the best ways to make money from real estate investing is by investing in multifamily properties.
Multifamily real estate has the best risk-adjusted return of any real estate asset class including stocks, bonds, and REIT’s for the past 20 years.
My company 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.
If you’re interested in learning more about the benefits that come from partnering with our company, contact us today by calling (630) 229-2383 or click here to connect with us online.