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There are a couple of problems with direct investment in real estate however. Its expensive to purchase even a single property, a minimum of tens of thousands of dollars, and theres no way most investors can create a portfolio of different property types and in different regions to protect from these dangers when you have all 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 similar to 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 real estate exposure. .
The stREITwise 1st stREIT Office REIT invests in high quality office properties and as of this date of the video, has paid a 10% annualized dividend. The fund is managed by seasoned real estate professionals that have obtained or managed over $5.4 billion in land and across all real estate types.
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So real estate crowdfunding is just the crowd meets real estate investing. Developers and investors list their properties on a crowdfunding platform that reviews the investment and the job owners. This is a thorough review and only around 5% of those jobs ever make it on into the PeerStreet platform that's where I do the majority of my investing. .
You can invest as little as $1,000 in each property which means you can build up a portfolio of different property types and in different areas for that diversification. In addition, you get professional management of the jobs. The job owners send all debt or equity payouts throughout 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's still that natural demand from homeowners and commercial users 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 because it provides me access to as many deals as you can. .
Clients to the channel have probably already seen the movies on our next passive income notion, self-publishing. Ive been self-publishing on Amazon since 2015 and have 10 novels that averaged $1,857 a 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 few months when youre really concentrated. The best part about self-publishing is that once you have it printed on Amazon, theres almost nothing left to perform. I spend roughly $20 per month on advertising for each book and thats it. .
So if youre doing a novel every 2 months, youll have your $5,000 a month in just over two years 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 might not sound great against double-digit stock returns but its dual what you get from additional fixed-income investments.
Investing in loans is nothing new. In fact, I guarantee you have money in them through any pension plan or insurance. You see banks sell their loans to investors that need reliable money 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 per month but even a little 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 enjoy about p2p investing on Lending Club is the websites automated investing instrument. 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 fulfill those factors and mechanically 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. .