You work hard at your day job, but you’d still love a little extra income to start saving for retirement or a big trip. The trouble is, you don’t have the time or energy to put into a full-time second career. If this sounds like your situation, it may be time to start exploring options for making passive income.
Rather than going into an office every day or working nine to five, passive income is earned by doing virtually nothing. These are usually investments and one of the best areas to invest in is real estate.
Making passive income real estate comes in many different forms. From investments to rental properties to turnkey real estate, there is a vast world of opportunities to make money from the sidelines without investing too much time and energy into the business.
Investment platforms like Yieldstreet can help you and offer resources about real estate investing. If you’re looking at getting into the real estate game, there are a few things you should know about how to increase your cash flow and diversify your dividends. Don’t wait. Start achieving your financial goals with a passive income stream from real estate investment today.
Traditional Real Estate
When you think of traditional real estate, you think of the properties. One way to earn money is to own rental properties. If you’re still looking to keep this as a passive career, you’ll want to hire a property management company to find tenants and take care of the day-to-day maintenance of your property.
Real Estate Investment Trusts
Real estate investing can give you the financial freedom that property management doesn’t allow for. And you don’t have to invest on your own. Real Estate Investment Trusts (REITs) are corporations or associations that pool money from many investors to invest in diverse commercial real estate ventures. These are lower-risk trusts that you can buy into just like stocks. There are private and public REITs that are low-cost to buy into while creating high dividends for you. By becoming a real estate investor, you are taking advantage of a great way to jump-start your passive income investing career.
Exchange-Traded Fund
If a REIT alone still feels like a complicated maze of investment opportunity, peer lending, and cash flow, you can go one step further and utilize an exchange-traded fund (ETF). Within an ETF, a professional fund manager will diversify your account between multiple properties and REITs. This type of investing allows you to put your money in different areas of the real estate market to get a higher cash flow.
Crowdfunding
If you don’t trust the corporate investors and the stock market pushers, maybe you want to look into crowdfunding to pursue your commercial real estate investment dreams. Through crowdfunding sources, you can pool your money with other investors and receive high returns. This often occurs when one real estate investor has a lucrative opportunity that they cannot afford on their own, so they bring in help to find high-profit returns for everyone. These crowdfunding opportunities can usually be found online.
Join a Group
There are so many companies and associations that are looking to help you turn your passive investment into positive cash flow. Do your research and find the best company for you to invest in. Going with the experts may be one of the best ways to turn a great profit.
Turnkey Real Estate
The popularity of turnkey property rentals came about when the housing crisis made buying a more profitable venture than renting. In this form of investment, you can buy residential properties and immediately rent them out. These primary residences have usually had recent renovations and once you exceed the original costs of the property, you start getting returns on your investment.
Out-of-State
You do not have to own real estate or invest only where you live. A popular way to increase your income stream through real estate is to invest in properties in areas with high incomes and strong economies. That way your investment is less risky and more likely to succeed.
