Is it really possible to invest in real estate passively? Let’s explore how to invest in real estate passively and how to find the best passive income investments.
We all know that in order to make money you have to work. Not only that but if you quit your job, the money stops flowing. However, there are always other ways that you can generate an income without having to do much work. This is exactly what we call “generating passive income”. So, basically, a passive income is the money you make by investing your money in a project while others work on it. Each party gets their share when receiving the income.
When we say “passive income” in terms of real estate, we are referring to investing your money in real estate property and letting others do the rest of the work for you. Therefore, you can sit back and enjoy the cash flow.
Related: Learn How to Make Passive Income From Your Real Estate Investment Properties
Now, the real question is “What are the ways through which you can find the best passive income investments in real estate?”
There are a many real estate investment strategies through which you can make passive income. In this blog, we are going to share a few ways you can find the best passive income investments in real estate:
First: Find the best passive income investments through online platforms
If you check online for the best passive income investments, you will find so many online platforms that are specialized in them. Therefore, here are a couple of real estate platforms where you can find great passive investment opportunities:
- Fundrise.com: Fundrise is one of the best real estate online platforms that gathers real estate investors from all over the United States. The best part about it though is the diversified commercial real estate portfolio. This feature allows for real estate investors to invest their money in a low-risk project. Not only that but also the low fee policy which allows for higher rates of return on investment for investors. Moreover, it does not really matter how much money you have. All you have to do is apply and then provide the share of capital you can afford.
- RealtyShares: Yet another great real estate online platform. It offers you the opportunity to find the best passive income investments. The thing that makes RealtyShares so awesome as a platform is that you get into the real estate investing business and choose whatever investment property type you want to invest in. They have a wide choice of properties from single-family homes to huge apartment buildings.
Second: Find the best passive income investments through real estate companies
When we say real estate companies, we mean turnkey real estate investing. What it means is to invest in a rental property that has already been renovated and may be rented out as well. Therefore, you get to purchase the property as it is with the tenants. In most cases, it comes with professional property management services as well.
What makes a turnkey real estate property a passive income investment?
Buying a property that already has professional property management taking care of it is a passive investment. However, that does not mean that you don’t invest any effort into it. It is just one of the real estate investment strategies that requires the least amount of effort. Therefore, you will have a rental property that is generating a rental income on a monthly basis while a property manager is running the daily operations.
Third: Find the best passive income investments through investing in rental properties
Another option you can go with for making money in real estate passively is rental properties. You have a choice of investing in long-term rentals or in short-term rentals. Regardless of the real estate strategy you choose, a rental property is one of the best passive income investments in real estate. This type of property comes with low risk as well as a steady rental income.
If you are still wondering what makes it a passive investment, this is where professional property management comes in. So, to make it a passive investment, hire a professional property manager. A property manager is an expert on managing rental properties. He/she will make sure to reduce the property expenses while maximizing the rental income. Thus, increasing the return on investment of your rental property.
Related: Can Airbnb Investment Properties Be Passive Income Investments?
Fourth: Find the best passive income investments through real estate partnerships
Real estate partnerships have proven to be a great way for passively making money in real estate. If you have the money to invest but don’t want to get involved in the physical work, then investing with a partner is the key. Find someone who is willing to invest the effort while you provide the funds. After all, you are providing your partner with the financial resources which he/she lacks.
Tip: Check out Mashvisor’s blog for more details on how to find a business partner in real estate.
Fifth: Find the best passive income investments through real estate crowdfunding
Real estate crowdfunding has been very popular amongst real estate investors who want to make money passively. Real estate crowdfunding is a form of raising funds for real estate investment projects, be they real estate development projects or even a rental property investment. You can take part in it regardless of the amount of capital you intend to invest.
Also, real estate crowdfunding allows you access to real estate syndicates. Crowdfunding has been one of the ways real estate syndicators pool financial resources. This way, you can invest the amount of money you wish to and receive a passive income in return. The thing that makes it one of the best passive income investments is that you don’t have to do anything. The syndicator, in fact, takes care of all the tasks associated with the whole investment. Therefore, you are only providing the funds for the real estate syndication.
Related: What Are the Best Passive Income Investments in the Real Estate Market?
When it comes to the best real estate investments Mashvisor is the ultimate source. Make sure to check out our blogs and learn more about making a passive real estate income.