Passive income is revenue that is earned or received without the need for any effort. Passive income is, for example, interest on a savings account.
Passive income is clearly attractive because it allows people to double or treble (or more) their revenue streams. For example, a doctor could be receiving their typical high pay at work while still collecting interest and dividends on their passive assets at home.
Here is 7 Passive Income Ideas In Commercial Real Estate For Doctors
- Invest In Rental Properties. This is a classic way to generate passive income from real estate. You can buy single-family homes, apartments, or even commercial properties and rent them out to tenants.
- Develop And Lease Commercial Space. If you have a background in development, you could buy land and develop it into commercial space, such as office buildings, retail centers, or warehouses. You could then lease the space to businesses.
- Invest In Real Estate Investment Trusts (Reits). REITs are companies that own and operate income-producing real estate. REITs benefit from a particular tax structure if they pay out a significant percentage of their revenues in dividends – which is why they are a fantastic option to generate passive income.
- Invest In Real Estate Crowdfunding Platforms. These platforms allow you to invest in commercial real estate projects alongside other investors. This is a way to get involved in real estate investing without having to buy a property yourself. A real estate crowdfunding investment is comparable to a private equity investment in that money is collected and placed into commercial assets by a deal leader. However, real estate crowdfunding is typically for a single property rather than a fund. Again, passive income is generated through periodic dividends and a gain on sale at the conclusion of the holding period.
- Manage Rental Properties For Others. If you have experience managing rental properties, you could offer your services to other investors. This is a way to generate passive income without having to own any properties yourself.
- Lease Parking Spaces. If you own a property with parking spaces, you could lease them out to businesses or individuals. This is a relatively low-maintenance way to generate passive income.
- Invest In Storage Units. Storage units are in high demand, and they can be a good source of passive income. You can buy storage units outright or invest in storage unit REITs.
These are just a few ways to generate passive income from commercial real estate. A doctor may establish a portfolio of properties that will generate revenue for years to come with careful planning and execution.
Before investing in any commercial real estate property, it is critical to conduct thorough research. Consider the location, the type of property, the rental demand, and the potential for appreciation. You should also consider the price of upkeep and repairs.
As informed investors, we should understand the risks associated with real estate investing and that there is no guarantee. Please do your due diligence.