Many real estate investors get into real estate investing with the goal of making easy money. These real estate investors soon find out that most real estate investments take a lot of work and effort to generate a profit. However, there is always the option of passive income investments in real estate.
Passive income investments in real estate allow real estate investors to be making money in real estate with no real work. If you wish to know how to make money in real estate with a hands-off approach, you have to know what the best passive income investments are.
Turnkey Investment Properties
A turnkey investment property is a real estate rental property that is usually sold by an investment company. These companies do all the hard work so that the real estate investors don’t have to. The investment company finds the investment property, conducts any repairs and renovations that are needed, and prepares the property to be rented.
A lot of the time, the investment company even finds tenants for these passive income investments. Some of these companies make things even easier for real estate investors by providing rental property management. This means real estate investors don’t even have to go through the trouble of finding a reputable professional property management company. Investing in property from these companies makes it so that real estate investors don’t have to lift a finger in order to be making money in real estate. Turnkey rentals are some of the best investment properties for passive income investments.
Real Estate Investment Trusts
Passive income investments can come in the form of Real Estate Investment Trusts (REITs). A REIT is a company that owns real estate income properties. The company allows real estate investors to invest in commercial real estate investment portfolios that include a variety of passive income investments. These investment properties can include hospitals, apartment complexes, office buildings, shopping malls, hotels, warehouses, and even land. Generally, a REIT company rents out these investment properties, and the rental income is passed on to the real estate investors.
REITs are great passive income investments because they have the added benefit of being lower risk. Real estate investors are investing in multiple rental properties, rather than putting all their eggs in one investment property.
Related: What Is REIT and Is It a Good Idea to Invest in One?
Real Estate Crowdfunding Investment Services
Crowdfunding investment services provide real estate investors with some of the best investment properties for passive income investments. Real estate crowdfunding is done through online platforms that bring together real estate investors looking to borrow money for investing in property and those looking to invest.
A real estate investor who has a project in need of funding applies online to the real estate crowdfunding and the real estate project is thoroughly reviewed. These real estate projects range from single house flips to larger apartment complexes, giving real estate investors many options to consider. If the real estate project meets the standards of the crowdfunding platform, it is presented to real estate investors who can choose to invest.
Once the real estate investment property gets full funding, the real estate investor who borrowed the money does all of the work needed. The real estate investors then receive money from the passive income investments. As when generally investing in property, there are risks to crowdfunding platforms and real estate investors who choose these passive income investments should educate themselves on the risks before investing.
Related: What’s All This Real Estate Crowdfunding?
Other online investment platforms exist to offer eREITs: a combination of exchange-traded REITs and non-traded REITs. There are a few benefits to choosing passive income investments in the form of eREITs. The fees that real estate investors pay are much lower than with traditional REITs. Another benefit of this form of commercial property investment is that they don’t fluctuate with the stock market at all.
Similar to the real estate crowdfunding platforms, real estate investors browse the sites for the best investment properties, invest, and then enjoy the passive income.
While real estate investors have non-traditional real estate investment options to consider when looking for passive income investments, there are ways to ensure that a regular rental property brings in passive income.
Finding Passive Income Rental Properties
Real estate investors who find passive income investments in rental properties depend on two things: investment property analysis and real estate market analysis. An investment property analysis will ensure that the investment property is in a good location and that any money that has to go into the investment property won’t hinder the return on the investment.
Click here to find a rental property for investing in the US real estate market.
A real estate market analysis will let a real estate investor know that he/she is paying a good property price for the investment property. If real estate investors perform both an investment property analysis and real estate market analysis, they’ll be investing in property that will provide steady rental income because it will always have tenants. These real estate investors will also see a great return on investment, ensuring passive income.
Don’t forget that Mashvisor can help you find passive income investments from listings of investment properties across the nation.
Contractors and Property Management
For rental properties to be true passive income investments, real estate investors will have to hire contractors to assess any repairs that need to be done and carry them out. When the investment property is ready for rent, real estate investors can hire professional property management to take care of all the work for them from then on out. This will include finding tenants and taking care of any complaints the tenants have in the future.
Hiring contractors and property management for an investment property will have to be factored into any expenses, but it can be worth it if real estate investors wish to sit back and enjoy the passive income.
Out-of-State Investing and Airbnb Rentals
Real estate investors who are looking for passive income investments have the options of out-of-state investing as well as Airbnb rentals. This is because these two investment strategies generally require contractors and professional property management anyway, so they are easy options to turn to for real estate investors wondering how to make money in real estate from passive income investments.
Related: How to Go About Buying a House Out of State for Rent
Check out the video below to learn about a few more passive real estate investment strategies that may be right for you.
Despite what many think, passive income investments in real estate exist and they allow real estate investors to be making money in real estate without really working. Some of the best investment properties are passive income investments. Passive income investments in real estate are a great option for financial independence, securing retirement, and generally just steady income for any real estate investor.
For more advice on real estate investments, keep reading on Mashvisor.