How to Generate Passive Income by Investing in Real Estate

We all know that it’s wise to put in the effort to create multiple streams of income rather than depending on a single stream of income to fund your life. After all, you never know when one job or income source might fizzle out, leaving you high and dry with not even a moment’s notice. For this reason, it’s essential to understand the basics of creating passive income for yourself.

One of the best ways to generate passive income is by investing in real estate. Were you aware that residential real estate as an asset class is a $29 trillion market, and the commercial sector adds another $10 trillion? If you’re new to the world of investing or real estate (or both), you’re probably wondering how you can make the most of this opportunity. Here’s how you can get started on generating passive income by investing in real estate.

Do Your Research First

Just as you wouldn’t rush into investing in some business or company without first understanding them, you should never rush into real estate investing without first doing your research. First and foremost, learn everything you can about the target market. What is the average sale price of a variety of properties in the area you’re considering for investments? What kind of extenuating data relating to the local economy, workforce, and population might impact real estate value? Understanding the market will give you a leg up on the competition, ensuring your success in growing your passive income and cash flow.

What is passive income? Simply put, passive income is any source of income that earns money for you while you sleep. In other words, passive income puts money in your wallet over time without you having to log hours for it. Of course, most passive income, including that earned from investing in real estate, take some work upfront. But once things the foundation is set, you can sit back and collect your money every month.

Whether you’re looking to make use of one of the top investing apps such as HappyNest to invest in commercial property, or invest in a residential property, you should set a realistic goal and be prepared to do some work to get started.

Create a Goal and Vision for Yourself

Even if you’re armed with the best apps for investors, you won’t get far without the right mindset. It would help if you considered your reasons for investing before diving too deep into the specifics. Do you have a goal in mind that’s related to financial independence for you or your family? Are you just looking to create extra income to put towards a large purchase in the future? Answering these kinds of questions for yourself can give you a much clearer mental roadmap of where you are and where you want to be with your investments.

Make Use of New Technology For Easy Investing

Finally, it’s helpful to know that new technology has made investing more accessible. With real estate investing apps like HappyNest, you can get started right away without much money upfront. Real estate investing apps allow you to adjust investments on the fly. You can also access your portfolio from the comfort of your smartphone. Making use of such technologies makes investing easy and convenient.

Generating passive income by getting started in investing in real estate represents an excellent opportunity for new and experienced investors alike. Even if you’re not entirely comfortable with the process, we hope this helped shed light on some of the most basic steps to real estate investing.

If you’re wondering how you can make use of the HappyNest to fund your dreams, or if you’re looking for some more information on what HappyNest does and how we can help you, then please don’t hesitate to reach out and get in touch with a member of our team. We can’t wait to help you start earning passive income by using the HappyNest app to invest in real estate!

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Top 3 Ways To Invest In Real Estate in 2020

Over the next 18 months, the vast majority of real estate investors plan to increase their allocation of capital into real estate. If you’ve made most of your investments in the past in the stock market, you may be thinking of diversifying your income through a real estate investment app. What options should you consider? Here are the top 3 ways to invest in real estate in 2020.

 

Buy A Rental Property
One of the best ways to increase your monthly cash flow is to buy a rental property. When searching for a property, do the math. Make sure the monthly rent you will receive is more than the monthly mortgage, property tax, and insurance combined. Some real estate investment apps allow you to search for properties for sale, and may even tell you the monthly rent and expenses associated with the property.

 

One drawback to buying a rental property is the upfront cost and day to day management. To ease the stress of dealing with tenants, you may want to consider hiring a property management service to oversee the rental property’s daily operations. Purchasing a rental property can be a lucrative investment for non accredited investors.

 

Flipping Houses
Flipping houses can be a risky but rewarding investment. You’ll need to hunt down bargain homes that require some work, but therein lies the upside in your investment. Once you make any necessary repairs, you can potentially resell the property for a profit. Finding a home in foreclosure may be your best bet to finding a great deal, and could cost as little as $500 down.

 

Real Estate Investment Trusts
If you’d like to take a more passive approach to real estate investing, you may want to consider Real Estate Investment Trusts (REITs). REITs are companies that own, operate, or finance real estate. Publicly traded REITs are bought and sold on exchanges. Public non-traded REITs are bought and sold through brokers or directly from the REIT itself. There are three types of REITs: equity, mortgage, and hybrid; Equity REITs own and manage properties. Mortgage REITs lend money to real estate owners and operators to purchase properties. Hybrid REITs are a combination of both. Generally, all of them offer high yields relative to other types of investments.

 

Real estate investing is an excellent way to build residual income. You can start investing today with a real estate investment app that you can easily download online. As with any investment, be sure to do your due diligence and understand the risks associated with investing.

 

Download HappyNest today on App Store or Google Play.

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