If you’ve ever invested in real estate, you know firsthand that it’s not always a passive investment. Sure, it’s nice to collect those monthly rent checks, but more often than not, you need to remind the tenant that it’s the first of the month again. On top of that, maintenance issues always seem to pop up, usually when you’re out of town and need to track down and manage a contractor remotely.
However, there are ways to make money in real estate that don’t require much effort. Here’s a look at a few ways to earn some truly passive income from real estate.
Let someone else take over the management headaches
There are a lot of ways to invest in real estate. One option is to own a rental property like a single-family home, apartment building, or vacation home. Investing in rental properties can require a lot of work if you manage them yourself.
But you can set the investment on autopilot by hiring a property manager for all the hands-on activities like finding and managing tenants and dealing with maintenance.
Meanwhile, even finding a property to buy can be relatively effortless. For example, online marketplace Roofstock has large inventories of available rental homes for purchase. It even provides recommendations of property managers to hire. These options make owning a rental property a relatively passive endeavor.
Invest alongside large real estate investors
Other online real estate marketplaces like CrowdStreet, Realty Mogul, Equity Multiple, and Fundrise enable you to invest in larger commercial real estate opportunities. Also sometimes called real estate crowdfunding portals, these sites allow investors to either become a limited partner in a single property or invest in a real estate fund that holds several properties.
Due to accreditation rules, some deals on these sites are only available to investors with a high income ($200,000 per year or $300,000 if married) or high net worth ($1 million in net worth excluding your primary residence). But if you are an accredited investor, they can be a great way to invest in real estate without much effort.
Investors can browse their portals and invest in individual commercial real estate properties (known as single-asset syndications) offered by experienced real estate sponsors. These sponsors manage the properties, complete any maintenance projects, and handle the eventual property sale. These real estate deals …….