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There are a couple of problems with direct investment in real estate however. Its expensive to buy even a single property, a minimum of tens of thousands of bucks, and theres no way many investors can build a portfolio of different land types and in different regions to shield from those dangers when you have all your money in only one or two investments. .
StREITwise offers 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 fantastic way to increase your property exposure. .
The stREITwise 1st stREIT Office REIT invests in high-quality office properties and as of this date of this video, has paid a 10% annualized dividend. The fund is managed by seasoned real estate professionals that have acquired or managed over $5.4 billion in land and across all real estate types.
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So property crowdfunding is just the audience meets property investing. Developers and investors list their properties on a crowdfunding system which reviews the investment and the job owners. This is a detailed review and only around 5% of the jobs ever make it on to the PeerStreet stage which is where I do the majority of my investing. .
You can invest as little as $1,000 in each property which means that you can develop a portfolio of different property types and in different areas for this diversification. You also get professional management of the jobs. The project owners send all equity or debt payouts through the system and it gets passed on to investors. .
Since these are longer-term jobs, short-term market hiccups shouldnt affect them. Real estate costs may follow the economy somewhat but there is still that natural demand from homeowners and business users so that affirms prices.
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I surveyed property crowdfunding sites on returns and found that debt investments average around 9% while equity returns average 15% annually. I invest in real estate debt on PeerStreet and in debt. I like investing on more than one platform because it provides me access to as many deals as possible. .
Clients to the channel have likely already seen the movies 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 per month on each book and you can generate 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 roughly $20 per month on advertising for every book and thats it. .
If youre Resources doing a book every two months, youll have your $5,000 per month in just over two years and thats going to be consistent income every month even if you give up writing.
Another investment I highlighted recently was p2p lending through Lending Club. Ive been investing in p2p for a few decades now and have booked this returns just under 10%. Now that might not sound great against double-digit stock returns but its double what you get from additional fixed-income investments.
Investing in loans is nothing new. In reality, I guarantee you have money in them via any pension plan or insurance. You see banks sell their loans to investors who 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 so about $1,000 on each $10,000 invested. Now thats a calendar year so youll need a bit invested to make that $5,000 a month but even a small portfolio will constantly be putting cash in your account. You get 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 the websites automated investing instrument. You decide on the standards for loans in which you want to invest and the program does the rest. It will search for loans daily which fulfill those factors and automatically invest your money. Its important because youre collecting money on your loan investments every day so you like this want that money reinvested as soon as possible. .