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There are a couple of problems with direct investment in real estate however. Its expensive to buy even a single house, a minimum of tens of thousands of dollars, and theres no way most investors can create a portfolio of different property types and in different regions to shield from those dangers when you've got 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 like a real estate investment trust in that it holds a collection of properties but much more like crowdfunding in its own management. The fund has paid a 10% annualized return since inception and is a fantastic way to increase your real estate 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 obtained or managed over $5.4 billion in land and across all property types.
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So property crowdfunding is merely the crowd meets real estate investing. Developers and investors list their properties on a crowdfunding system that reviews the investment and the job owners. This is a detailed review and only around 5% of those projects ever make it on to the PeerStreet stage 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 develop a portfolio of different property types and in different areas for that diversification. In addition, you get professional management of those jobs. The job owners send all equity or debt payouts throughout the system and it gets passed on to investors. .
Since these are longer-term projects, short-term market hiccups shouldnt affect them. Real estate prices may occur after the economy somewhat but there's still that natural demand from homeowners and commercial customers so that affirms costs.
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I researched property crowdfunding websites on returns and found that debt investments average around 9 percent whilst equity returns average 15% annually. I invest in property debt on PeerStreet and in debt. I enjoy investing on more than one platform since it gives me access to as many deals as possible. .
Clients to the channel have likely already seen the videos on our next passive income idea, self-publishing. Ive been self-publishing on Amazon since 2015 and also have 10 novels that averaged $1,857 per month last year.
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Im making an average of $185 a month on every book and you can generate a new book every couple of months if youre really concentrated. The best part about self-publishing is that once you get it printed on Amazon, theres almost nothing left to do. I spend roughly $20 per month on advertising for every publication and thats it. .
So if youre doing a novel every like this two months, youll have your $5,000 per month in only over two years and thats going to be consistent income every month even in the event that you stop writing.
Another investment I emphasized recently was p2p lending through Lending Club. Ive been investing in p2p for a few decades now and have reserved returns only under 10%. Now that may not sound fantastic against double-digit stock returns but its double everything you get from additional fixed-income investments.
Investing in loans is nothing new. In reality, I guarantee you already have money in them through 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 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 so its a great cash flow investment. .
What I like about p2p investing on Lending Club is the websites automated investing tool. You decide on the criteria for loans in which you want to invest and the application does the rest. It will look for loans every day which 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. .