The decision to retire is always easier to make if you have real passive income. This passive income is the income generated without putting in any kind of effort as an individual. Some of the common types of passive income are pensions, annuities, social securities, 401(K) plans etc. After making the initial investment, the only other effort requirement is to collect regular income from the investment. In this article, we will discuss in detail about Passive Real Estate Investing and find out how to use this effective investing method to create wealth.
Defining Passive Real Estate Investing:
It is the investment in which an individual invests the sum of money which others use to purchase, maintain, lease, repair and manage the real estate properties for generating income. It is a long-term real estate investing that can build true wealth and cash flow. This type of investing only requires a little of your time but it is a sure way to financial freedom.
Build Wealth through Passive Real Estate Investing:
There are two ways that are used by real estate investor to invest. One is the direct purchases of the property investment method and the other is the indirect investment method. Using direct purchase, there is a large up-front cost with higher potential returns. While indirect investments are made through the tax liens or real estate investment trust (REIT’s). In case of Indirect investment, no direct or immediate ownership of a property is involved.
Top-3 Ways of Passive Real Estate Investing:
1) Real Estate Crowdfunding:
It is a new opportunity for investing in passive real estate. There are more than 100 sites for estate crowdfunding that allows an investor to access various real estate projects. An individual can easily access different types and locations of property and build up their wealth fast.
2) Investing in Real Estate Investment Trusts:
An investor can invest in REITs in different ways like exchange-traded funds, mutual funds, and purchasing the shares of a publicly REIT Stocks. By investment, an individual will able to get high dividend with an appreciation of long-term capital. Searching out the best companies that have a good history in providing dividends to their investors is a good place to start.
3) Investing in the Turnkey Rental property
It is one of the wisest and most effective investment decisions to build wealth through Passive Real Estate Investing. The property is managed with the help of a property management firm. It is a secure, hassle-free and safe investment option to build wealth. Everything is done already in turnkey property and the only requirement is purchasing the property. The professional team will oversee your property and collect monthly cash-flow income for you. The residents of your property may pay-off mortgage or increase your equity.
So, now we know about the cool points that make passive real estate investing more attractive. But to build wealth using passive real estate investment, there is a need to be dedicated to finding out the right way to make profit and build up your wealth.