Passive income is that income in which you invest one time and do some work and get income for a very long time. One of the best way to earn passive income is real state investment. By investing in real estate you can earn a good passive income. For a real estate investment it does not only means to buy a property or a house but you can also invest in other ways that I will discuss in this article. Owning a property is also a good option but if you do not have enough money for that and you want to invest in real estate then this article has a lot for you.
The world of real estate investment is not only limited for being an owner of a residential property or a commercial property, there are other opportunities too and one of them is crowdfunded real estate investing. Crowdfunding is basically when a number of people invest in a single platform and every one of them holds a share that is usually done on the internet. These type of investment companies are familiar to peer to peer lending companies and it provides an opportunity for investors of same choices to invest in a matched interest.
Crowdfunded investment comes with a lot of benefits as you would not have to be involved in the process of ownership transfer or to manage the property by yourself and you won’t have to bargain with the seller directly as this platforms let you invest passively. Crowdfunded investment brings a lot of time savings for the investors as they won’t have to get involved in business in which property owners usually have to. They are one of the best option to invest as you do not have invest Millions in order to be the only owner of the property.
Now let us discuss some of those companies that provide the platform for people who are interested in crowdfunded investment. Some of them differ to each other to some extent and you could choose which suits you perfectly. Let us start from the 1st,
Fundrise is a crowdfunded investment platform that is in business since 2010. To start investing in Fundrise you would need minimum of $500. With the amount you will invest, you will buy eREIT that are a combination of exchange traded real estate investment trust and non-traded real exchange investment trust. The eREITs comes with many benefits and one of them is their low fee that you can avail as an investor otherwise you will have to pay 15% or more for the traditional REITs. In Fundrise eREITs you will have to only pay 1% of management fee. Another benefit of eREITs is that their value does not change with fluctuation in stock market.
On Fundrise you go through a list of eREITs investment funds and it is up to you to choose which type of eREIT is suitable for you and then you invest. As there is no broker or middleman between you and Fundrise so you do not have to pay any fee and all the profit you earn belongs to you. To invest on Fundrise you do not need to be an accredited investor and you can start investing with a minimum of $500 that is a very small amount.
Fundrise is one of the best platform for crowdfunded investment and you can find details of the eREITs you want to buy. Being a new investor on Fundrise you can invest in 4 different type of eREITs that are the Starter Portfolio, Supplemental Income Portfolio, Balanced Investing Portfolio and Long-term Growth Portfolio. It is up to you to invest in one of them or all of them.
2. Diversy Fund
Diversy Fund is another crowdfuded platform that mainly buys commercial properties and multifamily apartments or buildings which are already providing income. Diversy Fund invests money in buying these buildings and renovates them to get the maximum income from it and after some time they sell these buildings to gain the maximum output from it. You will get your profit to you as it is earned and you can reinvest it if you want to earn more. On this site you can mainly invest in two type of Funds that are Growth REIT and the Series A Round.
The investment plan that focuses on buying multifamily apartments and students housing is the Growth REIT. You can start investing by only $500 and the average profit for the year is 17.6% on Growth REIT. But if you have $25000 in your account then you should go for Series A Round. This investment fund mainly focuses on housing schemes and the profit you will get in these investments funds will be the 5 times of your investment amount. To invest in Series A Round you need to be an accredited investor and if you are not then you can invest in Growth REIT.
Another benefit of the Diversy Fund is that you do not have to pay any fee here. This is because there is no broker or middleman in between you and Diversy Fund and all the investment is done by Diversy Fund directly.
3. Realty Mogul
On Realty Mogul you would have to buy the LLCs, LLC is the stocks that Realty Mogul has and these LLC holds title to the property. You can have more investment option on Realty Mogul than any other website and Realty mogul buys mainly Multi-family dwellings, Industrial sites, Self-storage facilities, Office buildings, Medical buildings and Single-family investments. You do not need to worry about being an accredited investor to invest on Realty Mogul because if you are not you can also invest. If you are an accredited investor you can also invest in loan and these investments are of 6 to 12 months. If you are not an accredited investor you can then buy REITs that they offer and these REITS mainly focuses in multi-family dwellings and some of them are also of commercial properties. You are also offered to choose from MogulREIT 1 and MogulREIT 2.
Realty Mogul is a very safe platform and they will invest your money in a very safe way. The profit you will earn will be shared to you on monthly basis or quarterly basis and you will have to pay a management fee of 0.50% to 0.60% per year.
4. Rich Uncles
Rich Uncles is one of the platforms for crowdfunded investment in the real estate. They provide the lowest minimum investment rates in comparison to any other listed. This little amount gives everyone the opportunity to get started in the field of real estate investment.
On Rich Uncles you have two options to invest. In their REIT option there are two choices for you that you can buy shares in the commercial properties that Rich Uncles own or you can buy shares in student housing properties. Crowdfunded investment makes it easy for people to invest and you can invest in anyone of the REIT choice or both.
The BRIX REIT of Rich uncles mainly focuses on buying properties that are located within 01 Mile of the major universities. These properties are bought to give home to students that is why it is named as student housing and you can start investing by just $5 in the BRIX REIT of Rich Uncles.
The NNN REIT and the REIT 1 of the Rich Uncles is a bit different program in which you would need $500 at least to start investing. In these cases the Rich Uncles buys commercial properties like office buildings, retail properties or industrial properties and then these properties are leased to tenants that are nationally recognized.
One of the best part of Rich Uncles is that they do not charge any fee, that’s where it is amazing. There is no broker’s fee or any there tax on Rich Uncle that means a lot of savings. The profit you earn is paid to you on monthly basis and it is your choice to cash them out or re-invest them to make a bigger empire. To be eligible to invest on Rich Uncle you need to agree that your family income is more than $75,000 or your net worth is more than $250,000.
5. Equity Multiple
To invest with Equity Multiple you need to be an accredited investor and you should have at least $5000 so you could start investing. They mainly focuses on investing in commercial properties which shares you can buy in the form of REITs. Equity Multiple buys or invest in those commercial properties which are currently giving profit and they offer loan or invest in business ideas which can give a good amount of profit. They investment scheme is very safe and secure and you need to worry about your profit.
On Equity Multiple you would have to pay a fee of 0.5% every year and 10% of your profit will be deducted every time.
So these were some of the best ideas to make passive income from real estate business that you should look upon. Every sites has its own set of rules and regulations and it depends upon you what you choose.
Do comment in the comment section below and also share your experience of investing and earning from these ideas