If you are looking to diversify your income and make money without having to actively manage it, commercial real estate may be the right investment choice for you. Investing in commercial real estate can provide passive income through rent and other revenue streams. Let’s take a look at some of the easiest ways to leverage commercial real estate for passive income.
Invest in a REIT (Real Estate Investment Trust)
A REIT is an investment vehicle that allows individuals to invest in professionally managed portfolios of real estate-related assets such as office buildings, shopping centers, apartment complexes, and more. It’s a great way to get exposure to the real estate market without having to actively manage properties or do extensive research on individual investments. A REIT allows you to get started with relatively low capital requirements and provides access to professional management that can help you achieve your goals as an investor.
Invest in a Commercial Real Estate Syndication
Another option is investing in a real estate syndicate. This type of investment pool provides investors with the opportunity to invest in large-scale projects typically reserved for institutional investors or high net worth individuals. By pooling resources from multiple investors, syndicates can acquire larger, more profitable investments than smaller investors could undertake on their own. This is an ideal option for those who wish to benefit from commercial real estate investing but lack the capital or expertise necessary to pursue it independently. Returns tend to be better that REIT’s and there is much more control of the asset due to the direct ownership of the property by the Syndication partnership.
Invest in Crowdfunded Real Estate Projects
Crowdfunding platforms such as Realty Mogul allow individual investors to participate in larger projects by contributing small amounts of money towards a single project or multiple projects over time. Investors can choose the specific project they want to invest in and have total control over their investment portfolio while still benefiting from the expertise of experienced professionals who know how best to allocate funds and maximize returns. These investments tend to favor those with minimal funds to invest and encourage many investors to participate which requires more administration and overhead on the part of the Real Estate Asset Manager and as such, returns can be lower when compared to a Real Estate Syndication.
In conclusion, leveraging commercial real estate for passive income has never been easier than it is today thanks to new investment options like REITs, syndicates, and crowdfunding platforms. These tools provide access to high-yield investments that were previously only available for institutional investors or high net worth individuals with long track records of successful investments. With these options now available at your fingertips, there’s no reason not to start diversifying your portfolio with commercial real estate today!