How to Make Passive Income from Real Estate Investing

Real estate investing offers opportunities for both passive and active income which you can start making consistently and quickly when done properly. 

Should You Invest in Real Estate?

Some ways you can invest in real estate involve more risk than others.  Your options will depend on your level of capital available, time availability, investment time horizon, among other factors.

How to Make Passive Income from Real Estate Investing

The most common method for real estate investing when considering the investment opportunity is from directly purchasing a property and renting it out to tenants.

1. Direct Ownership and Management (or with 3rd-Party)

How to Make Passive Income from Real Estate Investing

With short-term rentals, you can often charge more on a nightly basis than you would with longer-term tenants and you don’t need to spend time chasing down rent. If you use a third party, such as Airbnb, for short-term rentals of a property you already own, you can earn money relatively passively. 

2. Short-Term Rentals

How to Make Passive Income from Real Estate Investing

A real estate investment trust (REIT) is a company that owns income-producing real estate and pools investors’ money to gain and manage real estate properties. Typically, REITs are high-end or commercial properties and they can fluctuate in correlation with the stock market. 

3. Real Estate Investment Trusts (REITs)

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