Some of the best passive income options today involve making passive income investments. This means you have invested your money into something that will increase in value or earn and become more profitable, increasing the value of your investment, without having to do anything to it. These types of investments increase your financial stability and security and like with vehicle advertising, require almost no extra effort by you.
Passive income investments are excellent ways to build up retirement or other savings accounts, while simultaneously earning your normal income at your primary job. In fact, the most successful passive income investments have been known to outpace and out-earn the income received from your primary source of employment.
Real estate investments are one of the best passive income investments an everyday person can make to increase their personal value with no extra effort today. Owning active rental properties is a commonly known concept among most people, in particular because of the growth of companies such as AIRBNB that make renting houses and apartments very easy.
However, did you know it is also possible to invest in real estate investment trusts, also called REITs, and crowdfunding? REITs and crowdfunding, which is the ability to invest in multiple real estate properties, are some of the easiest ways for an everyday investor to get their feet into the real estate market.
Crowdfunding passive income involves the funding of multiple real estate properties. You invest in specific properties with a group of other investors. Investment amounts and yields vary widely between different investments.
One of the primary attractions to this form of passive income is the low input costs due to shared investment expenses between multiple investors. As with most investments returns are not guaranteed so it is important to review all terms and conditions prior to making commitments.
REITs are publicly or privately traded businesses, which are reliant upon investor (shareholder) money for the purposes of managing commercial real estate properties. A REIT is required to pay out a minimum of ninety percent of its taxable income to its shareholders in exchange for tax breaks and benefits. This is the best passive income source for beginners in the passive real estate investing market.
Active rental properties are common forms of passive income, which have been around for centuries. Commercial and residential rental properties both exist. Tenants pay monthly rental payments to the landlord (you), which exceed the amount of money you owe in mortgage or other payments each month. The difference between the two amounts is your monthly profit per property owned.