In this article, I’ll share with you a wide variety of tips that you can use for creating passive income through real estate.
Passive income continues to be one of the most heavily searched for terms on the internet in 2020 because of the simple fact that everybody wants to earn passive income because it doesn’t matter if you’re an investor or an employee, passive income will enable you to have more time, freedom and the ability to live life on your terms.
Tip #1 – Earn Passive Income Through Real Estate Investment Trusts
The first way to earn passive income through real estate is by investing in a Real Estate Investment Trust (REIT).
Real estate investment trusts have been around for years. They are an excellent way to earn passive income. Before investing in one, make sure that you take the time to thoroughly research it so you can verify its performance.
Like stocks, real estate investment trusts pay out dividends on a quarterly or annual basis, and it’s not uncommon to find REITs with a 70-90% pay out ratio.
Besides verifying performance, you should find out what type of Real Estate the REIT is currently invested in because there is a wide variety of REIT’s that invest in real estate ranging from commercial Office Buildings, Timberland, warehouses, single-family, multifamily and shopping malls.
A word of warning, the performance of The Real Estate Investment Trust that you decide to invest in can be affected by the exchange that it’s traded on. For example, if the REIT that you’re invested in is traded on the NYSE, and the New York Stock Exchange plummets in value, you can expect your REIT to plummet in value as well.
Tip #2 – Mortgage Notes
Mortgage notes are another excellent way to earn passive income through investing in real estate.
Unlike investing in physical real estate, when you invest in the mortgage note, you’re not owning the property but you’re owning the rights to the mortgage and the note itself.
There are a wide variety of mortgage notes that you can invest in including secured, unsecured, private loans, and institutional loans.
Every year, thousands of investors around the world make passive income through real estate by investing in mortgage notes. This strategy will always generate long-term, predictable results that you can depend upon every month. The great thing is that since you’re not buying the property there’s nothing that you have to concern yourself with when it comes to managing the property.
Tip #3 – Crowdfunding
Crowdfunding is another great way to earn passive income through real estate investing. This method certainly is not new by any means but, the internet has made it increasingly easy for someone to get started with real estate investing without having to spend a lot of money initially.
As with any other form of investing, the keys to success with getting started in crowdfunding including doing your due diligence.
This means that you should thoroughly research the crowdfunding platform before you start investing with them.
You should also vet the company, understand their business model, and understand their investment terms.
Tip #4 – Invest In Land
Another excellent way to earn passive income through real estate investing is by investing inland.
Even though you may be the type of person who’s not excited about the thought of investing in land, the reality is that owning land offers a wide variety of benefits that you may not have considered before.
When you own land, you’re investing in an asset that is technically scarce because, with industrialization and population growth, land is becoming more and more of a hot commodity than ever before, especially in states like California.
Some of the other benefits that come from owning land include the fact that there is limited competition, no land management issues, it’s cheaper to own and maintain, and it doesn’t always depreciate as fast as other assets do.
Tip #5 – Invest In Real Estate
Last of all, but most important, another way to earn passive income through real estate investing is to invest in real estate.
With real estate, there are a wide variety of options to choose from including single-family homes, multifamily, and commercial properties.
If you’ve been reading this blog for a while, you know that my favorite form of real estate investing is multi-family.
With multifamily, the obvious benefit that comes from owning a multi-family property is that more doors equal more income unlike a single-family property that only has one door, or one source of income.
The key to success with owning real estate is to hire a property management company because any investment that you spend more than a couple of hours per month maintaining ceases to be passive income and turns into an actual job.
Contract Trier Capital
Are you interested in adding multifamily properties to your investment portfolio but you don’t have the time or the desire to get started with investing in multifamily yourself? If the answer is yes, I encourage you to contact my company today to learn more about the services that we can offer you.
Trier Capital is a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
Learn more about investing in multifamily properties by calling us today at (630) 229-2383 or click here to connect with us online.