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There are a couple problems with direct investment in real estate though. Its expensive to purchase even a single house, a minimum of tens of thousands of dollars, and theres no way most investors can build a portfolio of different land types and in different regions to protect from those risks when you have all of your money in just one or two investments. .
StREITwise provides a hybrid investment between traditional REIT fund investing and the new crowdfunding. The fund is similar to a real estate investment trust in that it retains a collection of possessions but more like crowdfunding in its own management. The fund has paid a 10% annualized return since inception and is a fantastic way to diversify your property exposure. .
The stREITwise 1st stREIT Office REIT invests in high-quality office properties and as of the date of this video, has paid a 10% annualized dividend. The fund is managed by seasoned real estate professionals who have acquired or managed over $5.4 billion in land and across all property types.
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So real estate crowdfunding is merely the audience meets property investing. Developers and investors record their properties on a crowdfunding platform which reviews the investment and the project owners. This is a thorough review and only around 5% of those jobs ever make it on to the PeerStreet platform which is where I do the majority of my investing. .
You can invest as little as $1,000 in each property which means that you can develop a portfolio of different property types and in different areas for this diversification. In addition, you get professional management of those projects. The project owners send all debt or equity payouts throughout the platform and it gets passed on to investors. .
Since these are longer-term jobs, short-term economy hiccups shouldnt impact them. Real estate costs may follow the economy a little but there's still that natural demand from homeowners and commercial users so that affirms prices.
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I researched property crowdfunding websites on returns and found that debt investments average around 9% while equity returns average 15% annually. I invest in real estate debt on PeerStreet and in debt. I enjoy investing on more than one stage because it provides me access to try here as many deals as possible. .
Clients to the channel have probably already seen the movies on our next passive income idea, self-publishing. Ive been self-publishing on Amazon since 2015 and have 10 books that averaged $1,857 per month this past year.
Before you think you cant write a novel, anyone can do so and it is so easy. In reality, self-publishing is a natural fit for bloggers because youre already writing the material. All you have to do is reformat it and turn it into a book for another income source.
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Im making an average of $185 per month on every book and you can generate a new book every couple of months when youre really concentrated. The very best part about self-publishing is that once you get it published on Amazon, theres nothing left to do. I spend about $20 per month on advertising for every book and thats it. .
If youre doing a book every 2 months, youll have your $5,000 a month in just over two decades and now thats going to be consistent income each month even if you give up writing.
Another investment I emphasized recently was p2p lending through Lending Club. Ive been investing in p2p for a couple of years now and have booked returns only under 10%. Now that may not sound great against double-digit stock returns but its double everything you get from other fixed-income investments.
Investing in loans is nothing new. In reality, I guarantee you have money in them through any pension plan or insurance. You see banks sell their loans to investors who need reliable cash more info here flow so their biggest buyers of loans are pensions and insurance companies.
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I average just under 10% annually on the loans about $1,000 on every $10,000 invested. Now thats a calendar year so youll need quite a bit invested to make that $5,000 per month but even a small portfolio will constantly be putting money in your account. You receive paid principal and interest monthly on your loans so its a great cash flow investment. .
What I like about p2p investing on Lending Club is the sites automated investing instrument. You pick the criteria for loans in which you want to invest and the application does the rest. It will search for loans daily that meet those variables and mechanically invest your money. Its important as youre collecting money on your loan investments every day so you want that money reinvested as soon as possible. .