Is there a difference between active and passive income? The answer to this question is yes.
With active income, this is money that you earn from physically doing something. This could be working in a job where you make a wage, salary, or tips; it could also be a sales position where you earn a commission.
As long as you are physically working, or participating in something to earn that income, the money that you have coming in from a job or service can be described as an active income.
Passive income is different from active income because of the simple fact that it’s income that you may only have to set up one time, or have very minimal involvement, for that income to come in on a monthly, bimonthly, quarterly or annual basis.
In the opinion of most investors, including myself, passive income is always better than active income because of the simple fact that its hands-off income, meaning that you don’t have to do anything to have that income coming in regularly.
Most investors work hard to establish multiple streams of passive income because of the simple fact that having a wide variety of passive income streams will enable them to live a life that they’ve designed without having to trade their time for money.
You’re Never Too Old, Or Young, To Focus on Passive Income
One of the most important things that you need to know as an investor is that you are never too old or too young to focus on creating passive income.
Passive income is essential for every investor, especially those investors who are in their 20’s, 30’s, and 40’s because the earlier that they can start working on creating passive income streams, the sooner in their lives that they will have the opportunity to retire and live a life of their design.
Creating passive income streams should also be a priority for older investors, regardless of their age, because of the simple fact that any investor can create multiple passive income streams in one year and have those passive income streams paying off for the rest of their lives.
What Are the Best Types Of Income Streams That Don’t Require Active Work To Maintain Them?
In 2020, there is a wide variety of passive income streams that any investor can get into, including investing in CD’s, stocks, and Bitcoin.
On the real estate investment side, there are fantastic many passive income streams for investors to choose from, including real estate investment trusts and also the opportunity for investors to get started with investing in residential or commercial real estate through crowdfunding.
Yes, the internet has made real estate investing easier than it ever has been because of the simple fact that an investor, you can easily research properties anywhere in the United States, and have all the information that they need at their fingertips before they decide to you add rental properties to their investment portfolios.
Multifamily Rental Properties Are The Best Way To Generate Income Passively
In 2020, it’s my opinion that multifamily real estate is by far the very best passive income vehicle for investors today because of the simple fact that one multifamily property can provide an investor with multiple streams of passive income.
Even though some investors will tell you that single family properties are better investments, the reality is that it’s easier to invest in one multifamily property then it is to invest in a single-family home because of the simple fact that a typical multifamily property offers an investor multiple ways to earn income compared to one single family home.
When you also think about the fact that more people are choosing to rent in 2020 than ever before, it makes sense for every investor to have at least one multifamily property in their investment portfolios because, owning a multifamily property is one of the best ways that any investor can generate substantial cash flow that they can depend upon during these trying economic times.
Even though the stock market is rapidly approaching record levels once again, in spite of high unemployment, and troubling economic news, multifamily properties remain a consistent, stable investment that investors can bank on because renters will always need a place to live regardless if the economy is up or down, generating passive income for investors.
How to Find the Right Multifamily Property
One of the keys to success with investing in multifamily properties is to first choose an up-and-coming area in the United States.
Once you identify an up-and-coming area, it’s best to pinpoint where are you want to purchase a multifamily property in that area then research if it’s close to public transportation, shops, stores and also things to do because you may think that you were investing in an excellent property but, if that property doesn’t offer much to renters, you may find yourself having more vacancies than you thought you would.
After you find a great property, it’s also best to do your due diligence and take the time to investigate the rent roll, expenses, and potential deferred maintenance, so that you know exactly what you’re going to be getting into if you were to purchase that property.
Last of all, but most important, let’s say that you do decide to move forward with purchasing a multifamily property for your passive income investment portfolio, the next step that you should consider is hiring a property management company to manage that property for you.
A property manager will save you the time, money, and hassle of having to manage your investment property yourself so that you can focus on enjoying the income from that property without having to do any work yourself.
Contact Trier Capital
At Trier Capital, we specialize in sourcing, acquiring, and managing multifamily properties across the United States.
Our goal is to help investors generate as many passive income streams as possible from multifamily properties.
If you’re interested in investing in a multifamily property but, you’ve haven’t gotten started yet, give us a call today at (630) 229-2383 or click here to connect with us online and let our team provide you with a personalized plan that we are going to use to help you get started with owning your first multifamily properties.