Making Your Real Estate Income More Passive

Real estate is a great investment. Not only can it provide consistent cash flow and returns, but it also has unique tax benefits. Real estate provides so called “passive income,” meaning that it should make you money without costing you time. But for many real estate investors, especially if self-managing, the income is anything but passive. Tenants will call at the most inconvenient times, toilets will overflow and furnaces will go out. What was once a passive income dream has now become a nightmare.

Here are three ideas to help you to continue to make money in real estate but to get your time back.

1. Hire help

There are a multitude of ways that you can hire people to save you time and headaches. The most obvious way you can save yourself time is to hire a property manager if you don’t currently have one. A property manager will be in charge of collecting rent, finding new tenants and resolving any maintenance issues. However, if you want to continue to self-manage, there are still ways to save yourself time by hiring help. Whether it is a handyman, landscaper or pest control company, you can find a professional to play a part in the magnitude and/or minutia of managing a property.

1. Invest with a partner

There are times that people desire to invest in real estate and have found a good deal, but are unable due to insufficient capital. As a RE investor, you can partner up with people like this to provide the lacking funds. There are many possible arrangements, but oftentimes this type of partner will take care of all the details and manage the deal for a portion of the equity. This type of investment is also called a joint venture.

1. Invest with syndications

There are many companies and investment firms out there that are happy to let you invest alongside them for a fee. These companies and firms normally have a great track record, and this is one of the most passive ways to invest in real estate. Just send in a check to invest, and reap the benefits of regular payouts for years to come.

Whether you are just looking to save a few hours a month or whether you are looking to get completely out of managing property, there are many ways to make real estate investments more passive.