How to Earn Passive Income From Real Estate Investing

Do you know that 90% of global millionaires amassed their wealth through real estate investment? For many people, buying and owning properties makes them rich. But the big sharks play a different real estate game that earns them money effortlessly.

This is the same as creating passive income channels through real estate investing. But how does real estate investing passive income work? What are your options if you want to keep the checks coming without much hassle?

Here is a quick guide on how to invest in real estate and create passive income streams.

1. Turn Your Properties into Rentals

A new real estate investor can start creating passive income by turning their standard properties into rentals. This includes single-family units, duplexes, or even triplexes. Standard home tenants tend to take better care of the property, rather than luxury home tenants.

However, managing a duplex or triplex can be pretty challenging, especially if you’re new in the game. In that case, reach out to a reputable rental property management company to help you with tenant screening.

2. Invest in Commercial Buildings

Commercial buildings can offer a more lucrative real estate investing passive income. You only need to ensure that long-term leasing businesses occupy your space, and you’re good to go. Even better, you can customize spaces to attract better-paying tenants.

On the flip side, just like normal rentals, you might also need help managing commercial buildings. Experienced property managers will help you negotiate leasing terms to keep your building occupied at all times.

3. Rehabilitate Properties

Do you love researching before putting your hard-earned money into any investment? It won’t be hard for you to spot real estate markets with lucrative potential. You can move into these markets and rehabilitate properties that don’t meet modern rental standards.

Instead of rehabilitating and flipping the property, you can turn it into a vacation rental. If the standards are at par, tourists will scramble to book your place. Even better, vacation rentals earn premium rates during holiday seasons.

4. Real Estate Trusts

Creating a passive income stream means you don’t get actively involved in making the money. Some investors still find it too involved when dealing with property managers. In that case, you can opt for real estate investment trusts (REITs).

You can invest in REITs through mutual funds or ordinary company shares. These REITs usually target high-end commercial buildings or storage activities. The cash flow in such properties is pretty lucrative.

5. Other Sources of Real Estate Investing Passive Income

Another way of earning passive income in real estate investing is through mixed-use development properties. One side can serve as office space, while the other provides homes for institutional tenants. In that case, you’ll have at least two rental income streams. If you want to know how to maximize the return on your investment property, click here.

Alternatively, you can invest in commercial complexes. Such properties can offer ample rental space for warehouses and self-storage solutions. Even better, commercial complexes are easy to manage because most tenants rent on leasing terms.