How Real Estate Can Be a Passive Investment

Today we have a guest post for you from Listen Money Matters about how young people can finally get over their fear of investing. Enjoy!

As human beings we tend to live by the clock. We eat, sleep and work on a schedule and usually after noting that it’s “time” to do so.

Because our time is precious and limited, we also tend to constantly strive toward getting more done during the waking hours we have, often taking one more than one task at a time, or trying to find ways to make a passive income. Passive income is income received without having to do active work. So why not apply that to our investing as well?

A passive real estate investment is one way to do that. Passive investing is easy because once you buy your investment, you don’t have to spend much (if any) time managing it while being able to reap the rewards. This may sound too good to be true, but I will share how real estate can be a passive investment choice for you.

Crowdfunding

If I want to buy a $15 pizza and so does my friend but we each only have $10, one way to still be able to afford the pizza is to share it. By putting our money together, we can each have a slice or two of the pizza and still be able to afford a drink to go with it. That is kind of how crowdfunding in real estate works.

Each investor puts their available investment money into the pool, which allows you to purchase real estate that would not normally be within your grasp to buy on your own.  Like sharing the pizza, each investor shares in the profits from their investment. There are several crowdfunded real estate companies in existence that can help you figure out which properties are good passive investments and you get to sit back and enjoy the profits.

Single Family Rentals

When you consider the positives and negatives of owning a rental property you might put the day to day management headaches in the negative column. That is where Roofstock can be a good choice to help you. You can utilize their knowledge and expertise in several ways, including choosing a property to purchase and also in the management of that property. This allows you the benefit of investing in a rental property and receiving a steady income without having to worry about the hassles of the day to day management of that property. Instead, you simply allow Roofstock to handle the hassles of being a landlord for you. In addition to saving you time in the management of the property, they will also save you time during the purchasing process by handling much of it for you. This allows you to passively invest in a property without having to do the heavy lifting of paper work and property management.

These are just a couple of ways you can invest in real estate as a passive investment.

Can you think of other passive investment options for real estate?

Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.