How to Generate Passive Income with 100K Through Real Estate

When it comes to real estate investing, you don’t really need millions to be able to build wealth and achieve ultimate financial freedom. In fact, you can start with just $100,000 and do it without having to deal with the arduous tasks of owning an investment property.

In this article, we’ll explore how to generate passive income with 100K and do it like a pro.

7 Best Passive Income Generators in Real Estate

Choosing which type of property can be difficult, especially when you are just starting out. However, you can make things easier by looking at properties that have been performing well in recent years. Here are the best passive income ideas 2021 had to offer that you can also consider for your investment.

1. Multi-Family Homes

With these types of properties, you can live in one unit and rent out the other units. As the property owner, you will be responsible for paying the mortgage, taxes, and upkeep of the property. However, the rental income will cover these expenses and give you a profit each month.

Multi-family homes are among the best ways to make passive income because they offer security and stability. The demand for rental units is always high, so you will never have to worry about your tenants moving out or not being able to find new ones. Furthermore, should one tenant default on their rent, you still have other renters that can help cover the costs.

2. Short-Term Vacation Rentals

A lot of investors have built their real estate empires through these types of properties. Airbnb and other travel booking sites have made it easier than ever to find and list vacation rentals.

The great thing about this option is that you can charge a higher nightly rate since people are only staying for a short period of time. This means that you can generate a lot of income in a short amount of time. Furthermore, you have the flexibility to choose when you want to rent out your property.

Short-term vacation rentals are perfect for those who want to be their own boss and have complete control over their property. While there is more work involved with this option, the rewards can be great.

3. Triple Net Lease (NNN) Properties

NNN properties could be your best option if you want to own a property and escape from paying the major expenses that come with it. With a triple net lease, the tenant is responsible for paying most of the expenses, including taxes, insurance, and repairs.

These types of properties are perfect for those who want to earn monthly income from 100K investment without having to deal with the hassles of being a landlord. However, you will need to find a reliable and trustworthy tenant that can take on these responsibilities.

There are many NNN opportunities out there, so you will always find a property that you can buy with such an amount of capital.

4. Storage Units

These are perfect for those who want to invest in a property that requires little to no maintenance.

Storage units are in high demand, especially in urban areas. People are always looking for extra space to store their belongings, and you can provide that for them. The only thing you need to do is find a good location and build or buy the units.

Once you have your storage units up and running, you can sit back and collect the rental payments each month.

5. Commercial Spaces

Once you have bought an existing commercial space and found some tenants for it, you will have very little to do.

The great thing about commercial spaces is that they usually have long-term leases. This means that you can generate passive income for many years to come. Furthermore, the tenants will also be responsible for paying the majority of the expenses, so you won’t have to worry about it.

However, finding and buying a commercial space can be difficult and expensive. You will need to do your research and make sure that you are getting a good deal.

6. Real Estate Investment Trusts (REITs)

If you want to invest in expensive real estate but don’t have enough cash to do it, then you should consider investing in REITs.

A REIT is a company that has income-producing real estate that they own and manage themselves. When you invest in one, you are essentially buying shares of the company. As a shareholder, you will receive a portion of the profits that the company generates from its properties.

REITs offer many benefits, including high returns and diversification. Furthermore, they are a great way to get started in the world of real estate investing without having to put down a lot of money.

7. Real Estate Syndicates

A real estate syndicate is a group of investors who put their money together to purchase a property.

This is also a great way to invest in expensive real estate without having to put down all of the money yourself. Furthermore, it allows you to diversify your portfolio and reduce your risk.

Real estate syndicates are not for everyone, but they can be a great way to generate passive income if you are willing to take on some risk.

Other Ways to Earn Passive Income

Aside from purchasing real estate, there are also other ways to earn passive income with a 100K investment. Let us take a look at the following.

Tax Liens

Tax liens are when the government places a lien on a property for unpaid taxes. As the investor, you can purchase these liens and then collect the back taxes from the property owner.

You will need to do your due diligence before investing in tax liens as there is always a risk that the property owner will not pay the back taxes. However, if you do your research and invest in quality properties, this can be a great way to generate passive income.

Stocks and Mutual Funds

By investing in these investment vehicles, you can receive dividends from the companies you are invested in. This is a great way to receive passive income in a stable manner.

Bonds

With bonds, you lend money to a government or corporation and then receive interest payments on your investment. This is a great way to generate passive income as it is a relatively low risk.

Lending Clubs

Investing in these groups is a great way to generate passive income through loans. You can choose the loans that you want to invest in and then receive interest payments on your investment.

Annuities

An annuity is a contract between you and an insurance company. With it, you make a lump sum payment to the insurance company, and then, they make periodic payments to you.

There are many different ways how to generate passive income with 100K. Basically, it all depends on what type of investor you want to be and how much risk you are willing to take on. With a little research, you can find the perfect way to generate passive income for yourself.

To learn more about generating passive income with this amount of money, you can check out this page: https://holdfolio.com/how-to-invest-100k-for-passive-income/.

Getting Started with Your Investment Journey

Once you have chosen the type of property or investment opportunity, it is time to get started. Here are a few things that you should have.

• A Solid Investment Plan
• The Right Team in Place
• A Bit of Courage

Creating an Investment Plan

When planning your investment, you should take into account a few key factors. First, you should know what your goals are. What do you hope to achieve with your investment? Are you looking for immediate cash flow or long-term appreciation?

Also, you should establish a timeline. How soon do you want to start seeing results?

Moreover, you should know what you are willing to risk in order to achieve your goals. Keep in mind that the higher the potential reward, the higher the risk.

Of course, you should have a budget to work with.

Building Your Team

Once you have a clear investment plan in place, it’s time to start putting together your team. This is one of the most important aspects of real estate investing, as the right team can make all the difference. You’ll need to find a good real estate agent, property manager, and accountant who are all experienced in passive income investing.

Having the Courage to Get Started

The final step is to take the plunge and get started. This can be a bit scary, but it’s important to remember that you’re not alone. There are plenty of resources available to help you succeed. The most important thing is to have a clear plan and the right team in place.

With these three things, you’ll be well on your way to generating passive income with 100K through investing.

Key Takeaway

When you know how to generate passive income with 100K, everything will not be as difficult as it may seem. It will be easier to get started on your path to financial freedom. Just remember to do your research and choose an investment option that best suits your needs and investment goals.

Most importantly, you should work with people who have already seen success in this line of business. With them, you will have the guidance and support you need to make your dreams a reality.

For more interesting tips and information on real estate, feel free to check the other posts on our website!