Home PASSIVE INCOME IS THE HOLY GRAIL OF PERSONAL FINANCE AND INVESTING

PASSIVE INCOME IS THE HOLY GRAIL OF PERSONAL FINANCE AND INVESTING

With enough passive income, working becomes optional because you can pay your bills with the income from your investments. It’s a state called financial independence, and most people don’t reach it until they retire.

SOURCES OF INCOME FROM REAL ESTATE
Real estate is not only an income- oriented investment, it’s also a less volatile asset class than stocks. So even as investors create multiple streams of passive income from real estate, they can also reduce risk in their portfolio without sacrificing returns.

1. REITS
When most investors think of diversifying into real estate, they jump straight to real estate investing trusts (REITs) - and for good reason. You can buy REITs easily through your regular brokerage account or other retirement account. Because they’re publicly traded, they’re regulated and required to provide a wealth of information to help you make informed investing decisions. They offer high liquidity, allowing you to buy and sell instantly.

And they make diversification easy, as you can spread your investments among hundreds or even thousands of properties and real estate projects across the world.

2. RENTAL PROPERTIES
Owning rental properties from Adriano properties directly comes with its own unique advantages and disadvantages. When you buy a rental property, you can predict the cash flow, or ROI, with great accuracy. You know the price you’re paying, you know the market rent, and you can forecast the long - term average of your expenses, such as annual repair costs, vacancy rates, property taxes, property management fees, and insurance. Not many investments offer such predictable returns. When you can predict the return of any given property, you can buy nothing but good investments.

3. HOUSE HACKING
No one says you can’t live in your own rental property. The idea behind house hacking is simple: You bring in other people to pay your mortgage for you. In the classic model, you buy a multifamily property, move into one unit, and rent out the neighboring unit or units. You neighbor-tenants pay your mortgage for you, and you live there for free.

4. WHOLESALING
It involves finding a great deal, putting it under contract, and then selling that contract to another investor with a profit margin. You never take title to the property; you merely connect an eager seller with a willing real estate investor. For example, say you find a property worth N50,000,000 and you get it under contract for N40,000,000. You reach out to your network of investors and offer them the property for N45,000,000. When you find a taker, you assign the contract to them.

5. AIRBNB/VACATION RENTALS
While you can use a rental property as either a long-term rental or a short-term vacation rental through Airbnb, the business model for each varies significantly. Short-term rental properties require much more work, from cleaning units between guests to marketing to coordinating entry and ongoing communication with guests. In essence, you’re running a hospitality business. For your trouble, you can earn strong profits and get a vacation property you can periodically use yourself. But you have to have the right mindset for it.

WE CAN HELP YOU ACCESS LOW INTEREST DIASPORA MORTGAGES TO BUY YOUR NEW HOME IN NIGERIA