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There are a couple of problems with direct investment in real estate however. Its expensive to purchase even a single house, a minimum of tens of thousands of dollars, and theres no way most investors can build a portfolio of different property types and in different regions to protect from these dangers when you've got all of your money in only one or two investments. .
StREITwise provides a hybrid investment between traditional REIT fund investing and the new crowdfunding. The fund is like a real estate investment trust in that it holds a collection of properties but much more like crowdfunding in its own management. The fund has paid a 10% annualized return since inception and is a fantastic way to diversify your real estate exposure. .
The stREITwise 1st stREIT Office REIT invests in high-quality office properties and as of the date of the video, has paid a 10% annualized dividend. The fund is managed by seasoned real estate professionals who have acquired or managed over $5.4 billion in land and across all real estate types.
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So property crowdfunding is merely the crowd meets real estate investing. Developers and investors record their properties on a crowdfunding platform which reviews the investment and the project owners. This is a detailed review and only about 5 percent of those projects ever make it on into the PeerStreet platform which is where I do most of my investing. .
You can invest as little as $1,000 in each property that means that you can develop a portfolio of different property types and in different regions for this diversification. You also get professional management of those projects. The project owners send all equity or debt payouts through the platform and it gets passed on to investors. .
Since these are longer-term projects, short-term market hiccups shouldnt affect them. Real estate costs may occur after the economy somewhat but there is still that natural demand from homeowners and business customers so that affirms costs.
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I researched real estate crowdfunding sites on returns and found that debt investments average around 9 percent while equity returns average 15% annually. I invest in property debt on PeerStreet and in debt. I like investing on more than one stage since it gives me access to as many deals as you can. .
Subscribers to the channel have probably already seen the videos on our next passive income notion, self-publishing. Ive been self-publishing on Amazon since 2015 and also have 10 books that averaged $1,857 per month this past year.
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Im making an average of $185 a month on every publication and you can produce a new book every couple of months if youre really concentrated. The very best part about self-publishing is that once you have it printed on Amazon, theres nothing left to do. I spend about $20 per month on advertising for each publication and thats it. . check these guys out
If youre doing a book every 2 months, youll have your $5,000 a month in only over two decades and now thats going to become consistent income each month even in the event that you stop writing.
Another investment I highlighted recently was p2p lending through Lending Club. Ive been investing in p2p for a couple of years now and have reserved returns just under 10%. Now that may not sound great against double-digit stock returns but its double everything you get from other fixed-income investments.
Investing in loans is nothing new. In reality, I guarantee you have money in them through any pension plan or insurance. You see banks sell their loans to investors who need reliable cash flow so their most important buyers of loans are pensions and insurance companies.
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I average just under 10% annually on the loans so about $1,000 on every $10,000 invested. Now thats a calendar year so youll need quite a bit invested to make that $5,000 a month but even a small portfolio will constantly be putting money in your account. You get paid principal and interest monthly on your loans so its a great cash flow investment. .
What I enjoy about p2p investing on Lending Club is the sites automated investing tool. You pick the standards for loans in which you want to invest and the program does the rest. It will look for loans daily that meet those factors and automatically invest your money. Its important as youre collecting money on your loan investments every day so that you want to have that money reinvested as soon as possible. .