I’ll add a fourth rule and that is to start small. I’ve heard stories of people who didn’t follow the rules outlined below and started with a shockingly large sum. In some cases, things did not end well for the novice investor.
You can get started on your passive income journey with companies like Groundfloor and Fundrise with as little as $10. Personally, I invested $500 before I felt comfortable investing $250,000 (see my returns on these investments).
Diversifying real estate income streams is the key to balancing risk and reward. There is more than just one way to create passive income using real estate investing without being a landlord.
Paying close attention to the market has a huge impact on your portfolio as a real estate investor. Remember, the real estate market is unpredictable, it flows and recedes over time – often dramatically.