It doesn’t matter if you are an experienced or inexperienced investor, the key to success with long-term investing is learning the best ways to earn passive income.
Once you have a clear understanding of how to earn passive income, you can start building multiple passive income streams for your Investment Portfolio.
As Warren Buffett once said, if you don’t start earning passive income, so that you can earn money while you sleep, you’re going to work till you die, so it’s important to get started with building passive income now regardless of how old you are.
Best Ways To Earn Passive Income
#1 – Rental Properties – One of the best ways to start earning passive income is by building a portfolio of rental properties, and there are a variety of property types to choose from including single-family, multifamily, commercial, and residential rental properties.
If you haven’t invested in rental properties yet, the first type of rental property that you should consider investing in is a multi-family property.
Multi-family properties are an excellent asset to be invested in because every person in the United States needs a place to live and since our country has developed into a nation of renters, more people want to live in multifamily properties than ever before.
Obviously, not every multifamily property is going to be a smart investment, this is why you need to do your due diligence and take the time to thoroughly research a property before you invest in it.
Besides multifamily properties, there are other rental properties that you could consider investing in including single-family, mobile homes, and commercial properties.
Single Family – Unlike multifamily properties, single-family homes do come with challenges because anytime your single-family home is vacant, you’re going to be faced with having to cover the mortgage and other expenses for that property until you find a qualified tenant.
Even though single-family properties have their downsides, this doesn’t mean that you should cross them off your list. The great thing about single-family is that you could still enjoy the benefits of investing in a single-family property if you decide to “house hack” your first property.
With house hacking, you’re going to be renting out a room in your home to a tenant. Doing this will enable you to have a tenant that will cover your mortgage/expenses while giving you the experience of being a landlord.
Mobile Homes – Another excellent way to earn rental income in 2020-2021 is by investing in mobile homes.
As with multifamily properties, mobile homes can be found across the United States in cities big and small. These properties are more popular than ever before among renters because they offer the conveniences of living in a traditional house, while still being part of a community where water, sewer, trash, and other expenses are paid for by the property management company.
Self-Storage – Besides mobile homes, self-storage is another hot spot for real estate investing in 2020 because more renters than ever before are storing their overflow items in self-storage facilities and since they’re going to be paying $50 to $60 per month for Self-Storage, why shouldn’t he be paying you, rather than the self-storage facility?
If you didn’t want to invest in rental properties right away, but you still want to get your feet wet investing in real estate, you should consider investing in a Real Estate Investment Trust, or you may want to think about investing in real estate through crowdfunding.
The great thing about investing in real estate through real estate investment trust, or crowdfunding, is that both options give you the ability to invest in real estate without actually having to have the responsibility of property management.
#2 – Dividend Stocks And Bond Ladders
Dividend Stocks – If you study the wide variety of passive investment opportunities available, one of the most time-tested methods for earning passive income is investing in dividend stocks.
This method has worked for generations because there’s nothing easier for an investor to put their money into a dividend stock, and wait for their dividend to be paid out on an annual basis.
Even though this method of passive income investing remains popular, investors in 2020 should use caution and take the time to thoroughly investigate a company, including their stock price, dividend history, and payment history, before they choose to invest their money with them.
Bond Ladders – Another one of the best ways to earn passive income is investing in a bond ladder. With this strategy, you invest your money into bonds that will mature at different times over several years. By taking this approach, you can reinvest the principal into new bonds and also decrease your reinvestment risk.
Keep in mind that treasury bonds are backed by the Federal Government but, corporate bonds are not backed by anything, so if the economy goes south, or many companies go under during the recession, the money that you had invested in their bonds could mean that you may lose your principal so it’s best to use caution and thoroughly investigate a company before investing in their bonds.
#3 – Invest In Bitcoin
Last of all, but most important, one of the best ways to earn passive income is by investing in Bitcoin.
If you’re unfamiliar with Bitcoin, this digital currency has been around since 2009 and it’s currently one of the top investments in the world because Bitcoin is an excellent hedge against inflation that also offers investors that stability and security of investing in a currency that’s not backed by Central Banks.
Over the last 10 years, Bitcoin has gotten a lot easier to invest in. In today’s world you can go down to your local bank, or grocery store, and use cash or your ATM card to buy Bitcoin and then take that receipt back home to deposit that Bitcoin into your digital wallet, or you can easily purchase Bitcoin on the internet.
With global economic insecurity, it makes sense for every investor who is not currently invested in Bitcoin to start putting their money into this digital currency immediately because it’s an excellent way for investors to diversify during these trying Economic Times.
Contact Trier Capital
At Trier Capital, we are a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
Our company does all of the hard work to find and acquire ideal properties, and then oversee asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.
To learn more about the benefits of partnering with us, contact me today by calling (630) 229-2383 or click here.