5 Ways to Make Passive Income through Real Estate Investing

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They say ‘time is more valuable than money,’ which is why passive income holds so much importance. If you love the idea of not working and making money, then this is for you. With it, you can make money when you are in the gym, doing groceries, and even when you sleep. When it comes to earning money via real estate investing, it is perhaps the most popular method to create passive income. For most people, the idea of generating money while they are sitting on the beach might seem intriguing. However, doing so with this method involves a lot of work.

Unfortunately, people are only aware of one way, and that is through rental properties. Over the years, the real estate sector and the financial market have drastically changed. In this article below, I will walk you through a few ways proven useful for those who want to make passive income through real estate. So, how are you going to earn passive income through real estate investing? Do you have any idea in mind? If no, then here is the quick list for you to check out.

Rental Properties

Investing in rental properties has to be one of the best ways to bring in a monthly income. The process is simple and straightforward. As the name suggests, you need to purchase a property and then have it rented out. However, it is not as easy as it seems. Depending on what your goals are, you can invest in rental properties. Whether you want to purchase a house or an apartment, you will look into your goals first. If you are considering buying a house, you must check out the article by Yankee Capital. Additionally, if you are going to invest in this method, keep in mind that it is the most costly and profitable one. You are going to require a good credit history and a lot of capital.

Publicly Traded REITs

The second best option is to put money in REITs or Real Estate Investment Trusts. With this method, you will get a benefit of commercial real estate investment and the advantages of capitalizing in a publicly-traded stock. To be precise, REITs have demonstrated a historical track record giving investors dividend-based income, good market performance, liquid investment, transparency, inflation protection, and portfolio diversification.

Real Estate ETF

A real estate exchange-traded fund (ETF) is another preferred method of earning cash flow. In this method, you will get competitive dividend returns while diversifying your properties across multiple commercial real estate properties. Therefore, instead of buying individual shares of one REIT, when you invest in a real estate ETF, an expert fund manager regulates which REITs to put money in. For this, he uses investors’ money to purchase groups of REITs.

Real Estate Crowdfunding

In recent years, crowding has drastically changed the landscape of real estate investment. It has become one of the significant ways of earning passive income because it has offered access to great investment deals even to average investors. If done right, investors can ‘have it all’ by putting money in real estate crowdfunding. With crowdfunding,  they can have access to different property types – hard assets that won’t vanish. But for this, you will have to create an account inside a crowdfunding platform. After you are verified as an investor, you can passively participate in funding a real estate property with other investors pooling their funds together.

Corporate Bonds

Finally, one of the most recommended methods of earning passive income is to invest in corporate bonds of real estate companies. This method of investment in companies and government is also called fixed-income because investors get fixed interest payments, typically two times a year, until the loan expires. Corporate bonds can diversify portfolios and offer a higher income return than term deposits and government bonds. It is essential to know that after the load is matured, investors receive an outstanding amount back. They can then use this money to reinvest in other bonds. Therefore, it will not be wrong to say that bonds hold the highest potential of earning a passive income of the investments, requiring almost no time to manage.


Ref number: THSI-1955


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