{"id":1777,"date":"2022-12-12T17:33:00","date_gmt":"2022-12-12T17:33:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=1777"},"modified":"2025-06-02T19:01:48","modified_gmt":"2025-06-02T19:01:48","slug":"real-estate-passive-income","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/real-estate-passive-income\/","title":{"rendered":"How Small Investors Are Making Passive Income in Real Estate"},"content":{"rendered":"\n
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If you want to build wealth, real estate\u2019s passive income opportunities are enticing. Luckily, you don\u2019t need to have thousands on hand to get started.<\/em><\/strong><\/p>\n\n\n\n

Building real estate passive income isn\u2019t overly complicated.<\/p>\n\n\n\n

Though real estate investing might be a simple investment choice, the relatively high costs presented a barrier to entry for many would-be tycoons.<\/p>\n\n\n\n

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Passive real estate investments can help you live the dream. After all, who wouldn\u2019t want to sit back and relax while your money gets to work for you?<\/h4>\n<\/blockquote>\n\n\n\n

Traditionally, investors with deep pockets would purchase real estate as a way to make money. Instead of using the asset for themselves, the investor rents out the property and enjoys a stream of passive income.<\/p>\n\n\n\n

In the past, purchasing a property on your own was the only way to get into this style of wealth building. But in recent years, the doors to real estate passive income have been opened through REITs, fractional investing, and more.<\/p>\n\n\n\n

Real estate passive income: How to get a piece of the action<\/h2>\n\n\n\n

When you think of real estate, passive investments are not the first thing that pops to mind.<\/p>\n\n\n\n

For many real estate investors, building a portfolio of rental properties is the name of the game. With a rental property, you can build passive income streams. The tenant pays rent each month, which equals profit for the investor.<\/p>\n\n\n\n

The good news is that you can generate passive income through real estate without ever worrying about a broken toilet ruining your night. And the best part is that you won\u2019t need thousands of dollars to get started.<\/p>\n\n\n\n

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  1. Real estate investment trusts: REITs are a great way to invest in real estate passively. REITs are companies that own and manage real estate assets, like apartment buildings, shopping malls, office buildings, and more. By investing in a REIT, you\u2019re buying shares in a company that owns these real estate assets.<\/li>\n\n\n\n
  2. Crowdfunded real estate is another way to invest in real estate passively. Crowdfunded real estate platforms allow investors to buy and sell shares in individual real estate projects. These projects can range from single-family homes to commercial buildings.<\/li>\n\n\n\n
  3. Real estate syndication is a way for investors to join forces and pool their money to purchase a large real estate asset. By investing in a real estate syndication, you\u2019ll become a part-owner in a large real estate asset. You\u2019ll be able to get a share of the profits the asset generates.<\/li>\n\n\n\n
  4. Peer-to-Peer lending means investing in real estate without actually buying a property. Peer-to-peer real estate lending platforms allow investors to loan money to real estate developers, who use the money to finance their projects. Investors collect interest payments on the loan and earn returns of between 6-12%.<\/li>\n\n\n\n
  5. Online real estate platforms enable you to invest in residential or commercial with a click of a button. These platforms provide investors with access to properties across the country. Some platforms even allow you to invest in rental properties without ever leaving your home.<\/li>\n<\/ol>\n\n\n\n

    Investing in real estate can be a great way to generate passive income. While active real estate investments might require fielding unexpected phone calls, passive real estate investing is an entirely different beast. This approach requires less hands-on work, and it\u2019s becoming increasingly popular among small-scale investors.<\/p>\n\n\n\n

    With the passive approach, you can invest in real estate without ever having to worry about late-night maintenance calls. Here\u2019s a closer look at how some small investors are generating passive income through real estate.<\/p>\n\n\n\n

    Fractional investing opportunities<\/h2>\n\n\n\n

    If you don\u2019t want to purchase the entire asset, fractional investing lets you purchase a piece of a bigger asset\u2014essentially, shares in an asset.<\/p>\n\n\n\n

    Right off the bat, the ability to add real estate to your investment portfolio without committing thousands of dollars is very attractive. Most of us don\u2019t have thousands of dollars to make a down payment or purchase an investment property outright.<\/p>\n\n\n\n

    Fractional investing in real estate is similar to purchasing a share of stock at a major company. You\u2019ll be able to buy a piece of an income-producing asset. But the management of the company is left to the professionals. With that, you can tap into the power of investing in real estate without needing thousands of dollars upfront or committing to becoming a property manager.<\/p>\n\n\n\n

    The fractional investment approach gives investors at all levels a chance to tap into real estate as an asset class. Since you get to reap the rewards of your portion of the asset, there\u2019s an opportunity to collect passive income.<\/p>\n\n\n\n

    Fractional investment opportunities seem to be popping up everywhere in the real estate market. A few of your options include:<\/p>\n\n\n\n