Passive Real Estate Investment In Washington

By
December 14, 2022

Passive Real Estate Investment In Washington

Passive Real Estate Investment In Washington

The real estate market has taken the entire country for an unpredictable ride over the last few years. And with housing prices dropping as interest rates rise, it's a great time to examine your real estate portfolio.  

Top Tips for Passive Real Estate Investing 

In addition, the real estate market is slowing down, with home prices dropping and available inventory extending longer than in the past few years. Any shift in the market is a great time to review your strategy. 

We'll cover a few tips for passive real estate investments in Washington so you can jump-start your plan. 

What is a Passive Real Estate Investment? 

A passive investment is one where you are not actively working to create growth. Your job creates income, but you only have that income stream as you continue to work. A passive investment creates income that could continue perpetually without additional work.  

Real estate investments are an excellent option for passive income. In fact, 90% of millionaires invest in real estate. 

However, you will still put work into creating and managing your real estate portfolio. It takes knowledge, capital and skill to produce significant returns.  

What Assets are Considered Real Estate Investments? 

There are many ways to expand your real estate investments and generate passive income. We'll cover a few of the most common ways to grow your portfolio.  

Purchasing land or property.  

One of the first things people tend to think of is investment properties. Buying property is an excellent investment because you only need 20% of the asset's value as a downpayment before you have access to 100% of the asset (the property). So accumulating properties for development, flipping homes, or managing rentals is a great way to build passive income. 

Funding investments. 

If watching the market for available properties or day-to-day management doesn't sound appealing, you can still grow passive real estate income. For example, you can invest in trading groups, like a Real Estate Investment Trust (REIT). 

REITs fund large-scale projects, typically for commercial development. These investments allow you to work with lower risk, hours, and capital while still having access to high returns. 

Leveraging the Stock Market.  

A third way to create passive real estate income is by investing in real estate company stock. By purchasing their stock, you loan them capital to buy and sell properties at a profit. Your return comes through the rising valuation of the stock, just like any other stock investment.  

Ready to Build Passive Income with Real Estate? 

Now is a great time to prepare your strategy and increase your passive income portfolio with real estate. But managing the market and your assets is a complicated process. So why not work with local experts?  

At UC Northwest Realty, we pride ourselves on expert knowledge of local Washington real estate trends. Contact us today for a consultation on your passive income goals! 

 

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