Passive income is income you earn without breaking a sweat. It is everyone’s dream, no matter how hardworking you happen to be. After all, if you earn enough passive income, then you won’t have to join the workforce. Instead, you can follow your passions, whether it’s something basic like golf or an absolute conversation-starter like collecting mermaid tails from around the world.
Yes, with a passive income, you can sit back and relax and wait for the zeroes in your bank account to accumulate. And there’s no better way to achieve that than investing in real estate. Here are four real estate opportunities that will give you sufficient passive income to change your life for the best.
If you’re old money and your trust fund’s ripe for the picking, you can build an apartment complex or a condominium. For those not as lucky, your dream of owning a rental property’s not entirely out of reach. You can apply for multifamily mortgage loans.
Make sure to partner with a mortgage broker, ideally, one you already have a working relationship with or someone recommended by a trusted advisor. A mortgage broker will guide you through the whole process of financing your project.
Here location is crucial. You want to zero in on land that has all the essential positive indicators. For example, are the nearby schools known for the quality education they provide? Is the crime rate in your considered neighborhood way below the national average? Is there a thriving job market in the area? These factors will determine how much you can profit from your investment.
If you live in one of the most expensive cities to rent an apartment, you’re looking into a huge ROI. Consider San Francisco where the average monthly rent for a two-bedroom apartment is $3,631.
Renting out properties to long term tenants mean long-term professional relationships. You’re like a physician who’s on call 24 hours. Any problems that arise in your property, you’re expected to solve.
If that level of commitment is not something you’re ready to take on, you can instead post your property on Airbnb or similar platforms. This is most suited to homeowners with second or third homes. Instead of letting your property go idle, why not make money out of them?
You can earn enough from Airbnb to pay property taxes and other lifestyle expenses. And anytime you need your property for personal use, you do not have to go through the stringent process of legal eviction.
If you’re lucky enough to own a piece of land in a city frequented by tourists, you can turn that property into a hotel. You can establish a boutique hotel that can rival what hotel chains offer by way of more personalized service. As for funding, you can attract investors with a foolproof business plan.
For this real estate venture to be successful, you need to hire quality staff. Work with human resource specialists to assemble a winning team on your behalf.
Aside from home rentals, another way to earn passive income from real estate is by building an events venue. Your building can host concerts, corporate events, academic conferences, government functions, and the like. There’s no shortage of these large gatherings. If your building has competitive amenities and is well-maintained, your venue will be booked for years in advance.
Here you will need to conduct some marketing. Think of your venue as a brand. It should have enough media presence and build a sufficient portfolio of successful events.
Do not let a piece of land sit idly. If you have yet to figure out what to do with it, why not rent it out? Businesses like gasoline stations routinely look for vacant properties to rent long-term. These contracts can last for decades or more. That should be enough time for you to figure out what to do with your property.
Now, here’s a piece of advice: make sure you screen your tenants and renters well. For instance, if you’re renting out land, ensure the contract’s clearly outlined and specific stipulations are understood by both parties.
The last thing you want to happen is to wake up to a phone call from a concerned citizen telling you your precious property has been inundated by hippies on a booze and music binge that lasts three days. Such a scenario will get you in trouble with the authorities. On the upside, you might just meet some of the most beautiful souls on the planet who will be remembered long after they have died, like Janis Joplin and Jimi Hendrix, and find your good old landlord self in history books.
Meta Title: Real Estate Passive Income You Need to Consider
Meta Description: If done right, real estate investment can earn you enough passive income that you won’t have to work a single day in your life anymore. Here are four real estate earning opportunities to consider.