What does it mean and how you can capitalize?
Are you interested in building an investment portfolio that allows you to generate wealth with as little of work as possible? For many of us, this seems like a far fetched concept only reserved for the super rich, in reality, the options to create passive income that uplifts your family from this debt to poverty system is readily available.
Passive Real Estate investments are a proven alternative for people seeking a wealth driven solution to increasing their income. Passive Real Estate investments are defined as investments that allow you to generate income through rental properties without the hassle of day to day work. As an investor you have the opportunity to cash in on your portfolio in two separate instances:
Bringing in tenants who pay on time
By increasing the value of your property and reselling it at a higher price.
Both methods will require effort and dedication to ensure you are not wasting valuable time and money. A detailed look at your investment is required to assure you can gain the maximum potential out of it. A full understanding of your tenants and their payment history will alleviate many of the tenant/landlord issues that can occur throughout a rental lease.
Popular Passive Real Estate Investment Options
- Real Estate Crowdfunding
Crowdfunding platforms have become a popular tool to gain attention, access, and funding for large projects in a variety of mediums. Real Estate is no different, the crowdfunding alternative provides some risk because you are essentially dealing with investments put together by strangers but if you are looking to get your feet into rental properties this newly developed alternative may be the ideal first step for new investors. Many of these platforms allow you that option of investing in commercial and residential properties for as little as $5000.
- Turn Key rental properties
Turn Key rental properties are properties that you can purchase renovate and resell through a property management firm. This type of rental allows you to delegate many of the necessary demands that are needed within the real estate space to professionals making it easier and less of a risk. Turnkey properties who are well-managed can help an investor create passive income from anywhere with the peace of mind that their property will remain up to code and will not be vacant for long periods of time which improves the chances of more income.
- Investing in mutual funds, stocks, and REITs
Some of the best ways to start your investing journey are through alternatives like REIT stocks, real estate mutual funds, and exchange-traded funds. REITs are typically owned or managed income-producing commercial real estate. This could be done through ownership of the property or ownership of the mortgage on those properties. Through this medium, you have access to high yielding investment options that also provide long-term capital growth. Do your research to find companies that have a positive trend of revenue growth, these types of investments will only build your investment portfolio for future investments.