NEW YORK – July 26, 2021 – (Newswire.com)
There are many ways to earn passive income, although real estate remains one of the most popular. Especially with the rise of fintech crowdfunding platforms in the real estate sectors, companies like Yieldstreet believe there can be a variety of ways to earn really passive income of real estate investments. While owning and renting real estate always generates rental income, tenants change often and maintenance work means that the income is not just poured into your account without any work. Instead, institutions and the ultra-rich have sought out truly passive income from professionally managed real estate investments, and here are five tips to help retail investors achieve the same benefits without interference.
1. Gather your team
To make sure you’re making smart investments, it helps to have a good team around you to answer questions about taxes, bonds, and potential returns on your portfolio. Your list may include a real estate agent, financial advisor, and lawyer who are all familiar with the specific investment industry. Alternatively, you can opt for a crowdfunding platform like Yieldstreet, which uses its team to research and deliver deals to investors.
2. Know your niche
Great, you want to invest in real estate. While you can find generic REITs, it helps to stop and ask yourself which niche markets you feel most comfortable investing in. Residential and commercial real estate work differently, but that’s just the tip of the iceberg. Knowing the geographic region and the underlying collateral for the property should be crucial for any investor looking to conduct due diligence.
Investors can also choose between REITs, real estate hedge funds, and real estate crowdfunding platforms to determine which vehicle best matches their risk appetite.
3. Are you an accredited investor?
For investors who fall under the new SEC definition of qualified investors, you can benefit from certain private securities and transactions not accessible to the general public. Check the new criteria to see if you are able to invest in these types of trades.
4. Avoid money pitfalls and high fees.
Whether it’s a property that consumes too much money or a real estate hedge fund that eats away at your expected returns with high fees, it is important before any investment to speak to a financial advisor or understand the risk. associated with an investment. While investors may seek high returns, this can often mean that the investor principle is not backed by guarantees.
5. Owning is not really passive income from a real estate investment
While investing and owning directly may seem more straightforward, but often comes with a litany of other issues and prevents income from being truly passive. When you are beholden to the tenants and maintenance of the property, the income can stop turning passive very quickly.
Press Releases Department
5 tips for earning passive income from real estate investments