If you have money, you want your money to work for you. Passive income is a byproduct of wise investing – that consistent money flow that results only from strategic purchases. Many people see investing in real estate as an active investment. You buy a property and sell it. However, there are multiple ways real estate can be a well of passive income for you as an investor.
Obviously, you can buy a property and rent it out. You put up a start-up cost, then rent out either the property or parts of the property to interested parties. The passive income comes when, every month, their rent comes in. Ideally, you’ll receive more rent each month than you have to pay for your mortgage or taxes, thus turning a profit.
However, this requires a significant start-up cost. You need to buy the property first, then hope that you can attract enough renters to compensate for the start-up costs. Further, you’ll have to make active repairs to the property when things inevitably go wrong. It takes a lot of active work and there’s a higher risk of failure for you as the investor.
This is where real estate funds come into play. These funds allow you to partake in real estate investments. These can take the form of real estate funds, real estate investment trusts (REITs), or even real estate crowdfunding. Your money is invested in a real estate property, mortgage loan, or development fund, and you see a return on your investment when the property turns a profit or rent is returned.
With these real estate investment offerings, you don’t have to worry about your knowledge of the real estate market. You put the responsibility in the hands of someone with experience. In turn, you help fund the aforementioned experienced parties and see the return on your investment in regular, passive intervals.
Of course, it can be tricky sorting out reliable opportunities for passive income in the real estate industry from more scrupulous investment offerings. The Oasis Realty Investment Group is positioned to offer you our collective wealth of knowledge to best benefit your investment portfolio. We know the industry, and know what offerings are best suited for you if you hope to collect passive income through the real estate market.
For more information on how you can collect passive income by investing in real estate funds, contact Oasis today.