Investing in real estate offers some of the best returns on your money. But it is not for everyone. For some people, it’s just not feasible given their busy schedules or other commitments. Fortunately, there are ways to get involved in real estate that don’t require your hands-on involvement. One option is to invest in real estate crowdfunding. But there are other options too, like investing in REITs or real estate investment trusts. These passive investments offer a high return with minimal work on your part.
When most people think of passive income, they picture receiving a check in the mail each month that is more than enough to cover their mortgage payment, other expenses and potentially leave them with some profit. This is the scenario that many people envision when they decide to become rental property owners. However, if you are serious about turning rental properties into a source of passive income, you must realize that it’s not as easy as it seems. According to personal finance expert Dave Ramsey, it takes a lot of time to find tenants, handle vacancies, perform regular maintenance, deal with tenant problems and make sure that your property stays in good condition.
Another option to consider for passive real estate investing is hiring a property management company to take care of the day-to-day tasks associated with owning and managing a rental property. While this can certainly be an effective strategy for those who want to enjoy the benefits of passive real estate investing without the hassle, it’s important to understand that hiring a property management company typically comes with a price tag (typically around 4-12%) that will reduce your profit margin and can add up quickly.
Finally, if you have the cash for a fix and flip project but don’t have the time to complete all of the work yourself, it might be worth exploring hard money lending as a way to create passive real estate income. While this option has a higher initial investment minimum, it can be an effective strategy for those who want to reap the benefits of passive real estate investing while still having the ability to invest in new projects and continue building their portfolio.
Passive real estate investing can be an excellent source of income if you know what you’re doing and are willing to put in the effort needed to manage your property. It is also an excellent way to diversify your portfolio and increase your overall financial security. If you’re interested in learning more about passive real estate investing, we recommend contacting a firm that specializes in real estate crowdfunding and private equity opportunities such as Metric Marketing Group. Their team can help you determine if this type of investing is right for you and can assist with finding opportunities that match your criteria. Good luck!