Passive ways literally mean you do not have to deal with any hassle, and money will keep coming to you while you sit up or are engaged in any side venture. All that a passive investment demands from you is right strategy in the right direction.
If you look around, you will find there are many investors who have become a full time passive real estate entrepreneur. Let me share with you some the basics of making passive real estate investments. Stick to these basics and you can also add your name among the successful passive real estate investors.
Investing In Limited Partnership
It is one of the best and safest ways to earn massive passive income. The biggest advantage of investing in limited partnership is that your liability will be limited up to the amount of your investment only. A limited partnership requires you to invest only a partial amount for the property, and you are liable for up to that amount only.
However, you can still enjoy the benefits from the appreciation and the tax deductions for the total value of the property. What is more, if you put in a little more effort you can easily make much larger passive income.
For example, if you have the time and ability, it is always prudent to do a project side by side. These projects may include buying, building or rehabilitating the rental houses. If your major concern is capital, you need not worry because limited partnership gives you an opportunity to use others people money.
This involves no risk at all because as I said you are liable to only that much amount that you have partially invested in the very beginning. But, in spite of the limited liability, you have unlimited scope to have a large share in the profits. What is more, such limited partnership has an edge over normal corporations because your profits are taxed just once.
Investing In Commercial Triple-Net Lease Property
When it comes to making passive real estate investments, investing in commercial triple-net lease property can be an excellent ripe for profit for you. Investing in commercial triple-net lease property is quite different from owning duplexes, apartments, land, or an office building.
It does not involve any headache because the triple-net long-term lease agreement works in such a way that your tenants perform all the functions for you. Whether it is collecting the rents, refurbishing the premises, paying the property taxes, insurance premiums, maintenance, accounting, legal, and other operating expenses your tenants do everything on behalf of you. In fact, investing in commercial triple-net lease property carries tremendous profit potentiality, and at the same time, you can enjoy some great advantages.
Investing in commercial triple-net lease property does not involve any risk. If at all, there are any risks, they are very nominal.
It does not require you to deal with the management hassles.
The lease payments can earn you significant monthly income.
What is more, unlike other renters, your tenants do not abuse the property. Rather, they do everything to make the location well maintained and attractive to customers. What more can you hope for?
Thus, if you are not getting desired success in active real estate investments, it is worth giving the passive ways of earning massive income a try.