The term “passive income” can be applied to different types of investments, but when it comes to real estate investing, it is definitely a term every buyer should understand!
What is Passive Income?
Passive income is a smart strategy that allows investors to make money without active involvement. Passive income from real estate investing can also mean several different things, but the end result is always that the buyer collects money on an ongoing basis with virtually no involvement in the property itself. It offers a secure, proven way to increase your annual income without being actively involved in the day-to-day aspects of property management, etc.
How Does Passive Income Work in Real Estate Investing?
Passive income from real estate investing is often derived from rental property earnings, which can come from virtually any type of property, including a vacation home in a top destination, multi-family properties, condos, standalone residences and commercial real estate. Alternative investment vehicles such as a publicly traded Real Estate Investment Trust (REIT) or a private real estate investment fund also offer a way for investors to earn passive income from real estate investing… Without ever getting their hands dirty or even stepping foot on site!
Advantages of Real Estate Passive Income
One of the greatest advantages of earning passive income through real estate investing comes with the added monthly, quarterly or annual cash flow that goes directly into your pockets! Few investments have historically created as much wealth as real estate, which has remained one constant amid a changing investment market landscape.
Equally important however, when you passively invest in turnkey real estate, it offers a stress-free alternative to dealing with stock market volatility, or actively managing an apartment building, vacation home or other commercial rental property. They key here is to make sure you partner with an experienced property manager you can trust, so be sure to get client testimonials and follow up on all of them!
Investing in Real Estate Passive Income with Your IRA Account
Finally, another important benefit that comes with earning passive income from real estate investing is the ability to invest using money in your IRA account! That’s right - most financial advisors won’t tell you this, but you can buy real estate in your IRA as long as it’s a passive investment! Whether you decide to buy an income producing vacation home, condo or apartment building that is professionally managed, or prefer to simply buy shares in a real estate investment fund that pays annual or quarterly direct cash returns, earning passive income from real estate investing is an ultra-low-risk strategy that can quickly and dramatically grow your assets, while paving the way for a more secure financial future.
Now, more than ever before, it’s time to protect your assets! Stop losing sleep in the stock market and download our FREE guide, 6 Steps to Investing in Real Estate with an IRA Account.