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There are a couple problems with direct investment in real estate however. Its expensive to buy even a single property, a minimum of tens of thousands of dollars, and theres no way most investors can build a portfolio of different land types and in different regions to shield from those risks when you've got all your money in just 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 retains a collection of possessions but much more like crowdfunding in its management. The fund has paid a 10% annualized return since inception and is a great way to increase your property 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 around $5.4 billion in property and across all real estate types.
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So real estate crowdfunding is merely the crowd meets real estate investing. Developers and investors list their properties on a crowdfunding system which reviews the investment and the project owners. This is a detailed review and only around 5 percent of the 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 every property which means you can build up a portfolio of different property types and in different regions for this diversification. In addition, you get professional management of the projects. The project owners send all debt or equity payouts throughout the system and it has passed on to investors. .
Since these are longer-term projects, short-term economy hiccups shouldnt affect them. Real estate prices may follow the economy somewhat but there's still that natural demand from homeowners and commercial customers so that affirms prices.
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I researched property crowdfunding this link websites on returns and found that debt investments average around 9% while equity returns average 15 percent annually. I invest in real estate debt on PeerStreet and in debt. I enjoy investing on more than one platform since it provides me access to as many deals as possible. .
Clients to the channel have likely already seen the videos on our next passive income idea, self-publishing. Ive been self-publishing on Amazon since 2015 and have 10 books that averaged $1,857 a month this past year.
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Im making an average of $185 per month on every book and you can generate a new book every few months when youre really focused. The best thing about self-publishing is that once you have it printed on Amazon, theres nothing left to perform. I spend roughly $20 per month on advertising for every publication go now and thats it. .
So if youre doing a book every 2 months, youll have your own $ 5,000 per month in just over two decades and thats going to become consistent income each month even in the event that you give up writing.
Another investment I emphasized recently was p2p lending through Lending Club. Ive been investing in p2p for a few years now and have reserved returns only under 10%. Now that may not sound fantastic against double-digit stock returns but its double what you get from other fixed-income investments.
Investing in loans is nothing new. In fact, I guarantee you already have money in them through any pension plan or insurance. You see banks sell their loans to investors that need reliable cash flow so their biggest buyers of loans are pensions and insurance companies.
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I average just under 10% annually on the loans about $1,000 on each $10,000 invested. Now thats a year so youll need quite a bit invested to create that $5,000 a month but even a small portfolio will constantly be putting cash in your account. You receive paid principal and interest monthly on your loans so its a great cash flow investment. .
What I like about p2p investing on Lending Club is your sites automated investing instrument. You decide on the criteria for loans in which you want to invest and the application does the rest. It will search for loans daily that meet those factors and automatically invest your money. Its important because youre collecting money on your loan investments every day so that you want that money reinvested as soon as possible. .