Fundrise.com
This is a site that I had heard a lot about recently with my research in real estate investment. The site kept coming up and so I looked into it and found that it is essentially a way to invest in real estate without a whole lot of money and with very little effort. It is much like investing in the stock market, but you are investing in real estate projects. You can diversify your investments and decide whether you are looking for safer/lower returns or riskier/higher returns. Seems like you can expect similar returns as those of the stock market, but it is less intimidating than the stock market in my opinion.
LendingClub.com
You may have received something in the mail with a loan offer from this company. Essentially they are a crowdfunded loan provider. You can go get yourself a personal or business loan from LendingClub and they actually fund your loan with multiple investors. In this case, I am talking about being one of those investors that puts money in to be loaned to individuals and in return you get interest from the loans. This is another investment opportunity where you can put a little money in and decide if you would like to focus more on higher return/higher risk loans versus lower return/lower risk loans.
Cryptocurrency Mining
This one was all the rage in 2017 due to the skyrocketing cryptocurrency market; mostly Ethereum’s rise which was a coin that could be mined very profitably for a while. This idea is one that many have given up because the market dropped horribly in 2018 and has only recently started to show signs of possibly coming back. Currently it is only profitable if you have low electricity costs (which I do), but it is possible to outsource your mining in places where the electricity cost is very low which would be even more passive than what I currently do. I will get much further in depth into cryptocurrency and mining in the future because it is a fun hobby that can make you money too, but for now just know that it can be a nice additional passive income stream. I have continued to stay profitable through this downturn of the market and although it could still take multiple years to pay off my initial investment (at current return rates), if the market gets hot again I will be in a good position to make some decent extra income with essentially no effort past the initial setup and occasional maintenance of the mining rigs.
Rental Properties
When I first got into real estate I was working on fix and flip properties because I think it is a lot of fun to fix and improve things around the house. It can be rewarding for sure, but it is also very high risk and a ton of work. I had a few successes and a few failures on flips and ultimately determined it is just too much time and effort to make since as a side gig. So for now, I am really only interested in acquiring rental properties. I started with one property in Kennesaw, GA and got a good property manager (this is key) and have basically just let it make money monthly for the last 3 years. This is not completely passive because it does require some extra effort with taxes and insurance and mortgages and when things come up that need to be fixed you have to make decisions, but overall it is definitely something I would consider passive income. Also, generally real estate will appreciate in value over time so having positive cash flow while paying off the mortgage can lead to great benefits down the road. Of course, investing in rental properties can be intimidating and does require a decent amount of money for that initial investment, but the benefits have outweighed the downsides for me so far. I look forward to buying more rental properties and building my portfolio for the long term.
So there are a few things I am working on now. Again, I will be taking a deep dive into each and documenting how they are turning out overall so you can look into them yourself and see if any fit into your financial plans.
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