Discover Real Estate
How to Earn Passive Income From Real Estate
When you think of real estate investing, you might picture yourself as a landlord doing DIY repairs. However, there are many ways to invest in real estate without having to do most of the work. In this lesson, we will discuss some hands-off ways to invest in real estate and generate passive income.
Rental income
One way to earn passive income through real estate is by purchasing a property and renting it out. If you hire a property manager, your role can be passive. This can be a good option for those who do not want to deal with the hassle of being a landlord. You can use a property management company to take care of the day-to-day tasks, such as collecting rent and dealing with repairs. This hands-off approach allows you to earn income without having to do much work.
Crowdfunding
Another way to invest in real estate is through crowdfunding platforms. This allows you to pool your money with other investors and purchase a property or purchase a multimillion-dollar asset. Most crowdfunding platforms are managed by a professional team of experts, which means you can earn passive income without having to do any of the work.
REITs
Another way to earn passive income from real estate is by investing in REITs. REITs are special types of investment vehicles that own and operate income-producing real estate. They are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes them a natural fit for those looking for regular income from their investments.
Money lending
Another way to earn passive income through real estate is by lending money to developers. As a private money lender, you are helping a borrower finance their project which is completely managed by someone else. Private money lending serves as an alternative to traditional lending institutions, like big banks. In this type of scenario, real estate loans are secured loans, with the property being financed and serving as collateral.
There are many ways to earn passive income through real estate investing. Which one is right for you will depend on your individual circumstances, risk tolerance, and goals. However, these options can be an attractive way to generate passive income.
Disclaimer
This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security which can only be made through official documents such as a private placement memorandum or a prospectus. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Neither Concreit nor any of its affiliates provides tax advice or investment recommendations and do not represent in any manner that the outcomes described herein or on the Site will result in any particular investment or tax consequence.Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals. Information is from sources deemed reliable on the date of publication, but Concreit does not guarantee its accuracy.
