Are you searching for information on types of passive income? If so, now is the perfect time to add more passive income streams to your investment portfolio, especially if you’re tired of stock market volatility and are searching for other ways to earn passive income.
In this article, I will break down some of the best types of passive income that you should consider investing in.
Types Of Passive Income Explained
One of the best types of passive income strategies that you should get started with right away is peer-to-peer lending.
This passive income strategy is by far one of the oldest, and most time-tested, ways to earn passive income in the world today because it’s a loan that’s made between you and the borrower.
With peer-to-peer lending, you’re going to earn passive income from interest payments that are made on the money that you loan but as with any investment opportunity there is risk involved so if you use a peer-to-peer lending site it’s best to analyze historical data and other information about a borrower or before you decide to lend money to them.
Besides the risk that’s involved with peer-to-peer lending, this isn’t an entirely passive income opportunity because, since you will be involved with multiple loans, you’ve got to have the ability to pay close attention to the payments that you receive every month so there is some work involved.
Another time-tested types of passive Income way are investing in dividend stocks. With this form of passive investing, you’re going to receive a payment on a quarterly or annual basis based on the profits of the company that you invest in.
Thanks to the internet, you can easily research a company’s profits online, and learn more about their products, before investing in their dividend stock.
Also known as defensive stocks, this form of stock market investing is a great way to earn a consistent income even during periods of stock market volatility so if you’re sick of red days, you may want to consider adding some dividend stocks to your portfolio.
When investing in dividend stocks, your goal should be to find dividend stocks that yield 5%-8% (or more) and they must have a strong buy rating.
Some of the best dividend stocks that you should consider in 2020 include Edison International, Toronto-Dominion Bank, and Boston Properties, Inc.
Real Estate Investment Trust
A Real Estate Investment Trust (REIT), is very similar to dividend stocks because they pay out income to their shareholders and you can earn passive income on an annual basis.
I like real estate investment trusts as a form of passive investing because they enable investors to get started investing in real estate without actually having to buy and hold properties.
As with any other form of investing, due diligence is required so take the time to thoroughly research a real estate investment trust before you decide to invest your hard-earned money with them.
Keep in mind when investing in real estate investment trusts, there’s always going to be risk involved so it’s best to make sure that you invest in the right one. As we’ve seen this year, many industries like restaurants and hotels have taken a beating so it’s best to focus on investing in multifamily real estate investment trusts because there’s never been a greater demand for multifamily properties then what we’re seeing right now.
As an investor in the 2020s, you can easily create Types Of Passive Income streams from your home or office utilizing your computer and your internet connection. Besides the passive income opportunities that I mentioned above, another method for earning income that you should consider is affiliate marketing.
With affiliate marketing, you get paid commission any time somebody buys a product from the affiliate offer that you’re promoting.
The key to success with affiliate marketing is to choose a high converting offer. Once you find the right opportunity the next step is to invest in a qualified source of traffic to send to your offer.
Keep in mind that affiliate marketing may not be an easy way for you to earn passive income right away, especially if you’re not familiar with internet marketing. You may want to hire a coach or invest in some training to learn how to get started with affiliate marketing before you take your initial steps because this will save you time and help you to get started correctly.
So far, I’ve offered you several types of passive income opportunities that you can get started with right away.
Once you begin earning passive income, your goal as an investor should ultimately be to invest in real estate because, over the last 20 years, real estate has continued to bring in consistent profits for investors on an annual basis even while the stock market has had its ups and downs.
The good news is that there is a wide variety of real estate investment opportunities out there ranging from commercial, vacation homes, residential properties, and land lots.
If you’re not sure about which Types Of Passive Income Real Estate you should invest in creating, you may want to consider getting started with house hacking.
With this form of passive income, all you have to do is rent out a room in your home to a prospective tenant. This gives you the ability to gain experience as a landlord while also earning an income that will cover your mortgage every month.
One of the great things about house hacking is that you can also earn income from this method if you invest in a duplex, triplex, or fourplex because, with FHA Loans, they allow you to utilize their low down payment mortgage loan if you plan on living in one of the units of the multi-family property that you intend on purchasing.
Multifamily investing is by far my most favorite form of real estate investing because there’s no shortage of multifamily properties across the United States and there’s never been a greater demand for apartments than there is right now.
Why do I prefer multi-family properties? The answer all comes down to the economy of scale. With an apartment or multi-family property, all of my rental units are in one location.
If one or more of my rental units needs maintenance, I only have to send a maintenance team to one location, instead of hiring multiple companies for work on multiple single-family homes.
The same is true when it comes to vacancies, if one of my multi-family properties has a vacancy, I’m still going to earn income from that property every month from the tenants that are currently occupying the other units in the property.
Contrast this with the investor who owns a single-family home that has a vacancy, until they’re able to find our tenant to live in that home, the owner has to pay the mortgage on that property every month out of their pocket until they find a renter to live there.
Keep in mind that since the world has changed within the last 12 months, some cities are not as safe as they once were. Before investing in a multi-family property, especially with a real estate investment trust, you should take the time to thoroughly research the area where that property is located.
Your goal should be to find multifamily properties that are in up and coming locations with thriving economies, job markets, amenities and things to do.
Contact Trier Capital
At Trier Capital, we know how difficult it can be to find Types Of Passive Income, or invest in a multi-family property yourself.
My company 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.
Get started investing in multifamily properties today by calling (630) 229-2383 or click here!