Creating Passive Income From Multifamily Real Estate
The CEO of Blue Lake Capital LLC, Perlman, recently offered tips for investors to create passive income from multifamily real estate. With fractional real estate investing platforms, barriers of entry are removed in an investment space notoriously difficult for most people to enter. Instead of buying a property to rent out, an investor can buy fractional shares of a real estate asset, allowing them to start earning passive income today with no need for a huge outlay.
The passive aspect of real estate investing can be leveraged to have the greatest effect, especially when it comes to income replacement. Final returns may vary, but earning passive income from real estate investments can be a great way to supplement your income.
I recommend STWD to passive income investors because it is currently trading at a 10% dividend yield. Starwood Property Trust is a real estate investment trust that specializes in the origination, investment, and management of commercial mortgage loans and other commercial real estate debt investments. It also invests in other financial assets such as residential mortgage loans, commercial mortgage-backed securities, and other investments. These investments are professionally managed commercial real estate properties that pool real estate and financial resources from a group of investors.
Liz Brumer-Smith is the CEO of Realty Income, one of the few real estate investment trusts (REITs) that has raised its dividends consistently over the past decade. Realty Income invests in high-quality, income-producing real estate by focusing on leased properties with tenants with strong credit ratings.
Jamil Damji is an investor, wholesaler and mentor within the real estate space. He is a cofounder of KeyGlee and runs AstroFlipping, a real estate education and mentoring program for new and experienced investors. Damji is also a speaker and author, and he has written several books on real estate investing and finance.
While your initial instinct might be to invest in physical real estate to generate investment income, that can come with a lot of headaches and require significant capital. But with fractional real estate investing, passive income investors can get the same benefits of traditional real estate investing with a much smaller capital outlay.
In conclusion, creating passive income from multifamily real estate is a great way for investors to create a reliable income stream. With fractional real estate investing, the barriers of entry are removed and investors can start earning passive income today with no need for a huge outlay. Starwood Property Trust, Realty Income, and Jamil Damji’s programs are all great options for passive income investors who want to invest in multifamily real estate.