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There are a couple of problems with direct investment in real estate however. Its expensive to purchase even a single property, a minimum of tens of thousands of dollars, and theres no way many investors can build a portfolio of different land types and in different regions to protect from those risks when you've got all of your money in only 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 holds a collection of properties but more like crowdfunding in its 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 that have acquired or managed over $5.4 billion in property and across all real estate types.
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So property crowdfunding is just the crowd meets real estate investing. Developers and investors record their properties on a crowdfunding system which reviews the investment and the job owners. This is a thorough review and only about 5 percent of the jobs ever make it on into the PeerStreet platform which is where I do most of my investing. .
You can invest as little as $1,000 in each property that means that you can build up a portfolio of different property types and in different regions for this diversification. You also get professional management of those projects. The project owners send all debt or equity payouts through the system and it gets passed on to investors. .
Since these are longer-term projects, short-term economy hiccups shouldnt affect them. Real estate costs may follow the economy a little but there's still that natural demand from homeowners and commercial customers so that supports costs.
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I surveyed real estate crowdfunding sites on returns and found that debt investments average around 9 percent while equity returns average 15 percent annually. I invest in real estate debt on PeerStreet and in debt. I like investing on more than one stage since it provides me access to as many deals as you can. .
Subscribers to the channel have probably already seen the movies on our next passive income notion, self-publishing. Ive been self-publishing on Amazon since 2015 and have 10 books that averaged $1,857 a month last year.
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Im making an average of $185 a month on each book and you can produce a new book this contact form every couple of months if youre really focused. The best thing about self-publishing is that once you get it printed on Amazon, theres nothing left to perform. I spend about $20 per month on advertising for each publication and thats it. .
If youre doing a book every two months, youll have your own $ 5,000 a month in only over two decades and now thats going to be consistent income every month even if you stop writing.
Another investment I highlighted recently was p2p lending through Lending Club. Ive been investing in p2p for a few years now and have booked returns only under 10%. Now that might not sound great against double-digit stock returns but its dual what you get from additional fixed-income investments.
Investing in loans is nothing new. In reality, I guarantee you already have money in them via any pension plan or insurance. You see banks sell their loans to investors that need reliable money flow so their most important buyers of loans are pensions and insurance companies.
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I average just under 10% annually on the loans so about $1,000 on every $10,000 invested. Now thats a year so youll need quite a bit invested to create that $5,000 per month but even a little portfolio will constantly be putting money in your account. You receive paid principal and interest monthly on your loans visit this site right here so its a great cash flow investment. .
What I like about p2p investing on Lending Club is the websites automated investing tool. You pick the criteria for loans in which you want to invest and the program does the rest. It will search for loans daily that fulfill those variables and mechanically invest your money. Its important as youre collecting money on your loan investments daily so that you want to have that money reinvested as soon as possible. .