Multiple Streams of Income in Real Estate

Income

It doesn’t really matter what kind of investing you are participating in, it’s almost always a wise idea to have multiple streams of income in order to maximize your profits while spreading your risks. Even within the confines of real estate investing there are different types of investing that can help you spread your risks when markets meet turbulent times and this is a very good safety net for those who do not want to feel as though they are gambling away their investments on a real estate market that is fickle on its best days.

You really have two course of action when it comes to bringing in multiple streams of income when building your financial portfolio. The first is to spread your real estate wealth and investments across several different types of real estate investments. There are a few types that come immediately to mind. First there are rental properties. You have two options even with these. You can either choose to rent properties outright to families, students, singles, and the elderly in your town or you can offer a lease or rent to own situation for those who have struggled in the past but still have the dream of home ownership.

Other options for bringing in multiple streams of income through real estate is to have a few rental properties and couple those with a few flips in the works, perhaps a commercial property or two, and a pre-construction deal or vacation condo in the pipelines. One thing is certain you should always be on the lookout for your next real estate investment if you really want to make good money in this business while having a little added security. Rentals are passive income for the most part, especially if you have a solid property manager taking care of the details and the other investments are often icing on the cake.

If you want a truly diversified portfolio however, it is a good plan to include a few investments that aren’t related to real estate investing. While I firmly believe that real estate investing is the way to go for most people there is much money that can be made in other fields and it would be pointless to discuss multiple streams of income without mentioning a few that were unrelated to real estate investing. Retirement plans are a great option and you can now invest in a retirement plan of your own even if you are self-employed. It is definitely worth considering as yet another stream of income, even if it is income that you will need to wait a while to receive. Franchise businesses are often great money makers for those who need more immediate results from their investments efforts, and stocks and bonds are again beginning to look like good long term investment strategies.

The truth is that there are many things you can do to create even more streams of income to add to your real estate investments. From making money online through affiliate marketing, blogs, and direct sales you can also tackle brick and mortar businesses, though these tend to be just as time consuming as real estate. The point is that you want to bring in money from different avenues and real estate investing is one of many different routes to explore when deciding on your investment future and establishing those multiple streams of income.

About John G.

I'm a full time real estate investor in NW Ohio, investing since 2007. I specialize in Wholesales, Subject 2's, Rehabs, Mentoring, Private Lenders and web based marketing. I'm your personal Residential Real Estate Engineer

10 Comments

  • 1 Jun 2011 | Permalink | Reply

    Good stuff John. Multiple streams of income is on many investors minds.

    To Your Success!
    Tim

    • 1 Jun 2011 | Permalink | Reply

      Tim, I’m glad you enjoyed the article.
      Always remember to check back often for updated articles, don’t forget to check out the other pages on the site as well as subscribe to our RSS feed.

  • 10 Jun 2011 | Permalink | Reply

    John,

    I’m beginning to appreciate diversification as well..

    One of the options is to build out real estate, online. Through domains and development. I just thought i’d add this for those who are thinking of lower cash exposure.

    But it ain’t easy. And work needs to be done on a daily basis. But it could create a decent cashflow after 2-3 years.

    Nice post John..

    -Joe

    • 11 Jun 2011 | Permalink | Reply

      Joe, thanks for the comment. Would you please expand on your comment of “Building Out Real Estate, Online”
      It sounds interesting.

  • 23 Jun 2011 | Permalink | Reply

    Fantastic! It is a good plan to include a few investments that aren’t related to real estate investing, I am very inspired from your multiple streams of income in real estate..
    Thanks for sharing with us..

    • 28 Jun 2011 | Permalink | Reply

      I’m glad you like the post and please feel free to share any other investment streams you use or have considered.

  • 26 Jun 2011 | Permalink | Reply

    John,
    Here’s a couple other Multiple Streams that go along nicely with Real Estate Investing. Discount Electricity (even FREE electricity) and Pre-Paid Legal. What investor doesn’t need legal advise, contract reviews, and wills/estate planning. PPL gives you that for a very very cheap price unlike Attorney hourly fees.

    Keep up the great work.

  • 22 Dec 2011 | Permalink | Reply

    John have you considered the multiple streams of income possible in real estate in college or university towns? I have talked to several real estate investors both in the United States and Canada who have found great success in buying real estate in college towns. With admission rates increasing each year and costs increasing on campus more students are advocating for off campus housing. Parents are also favoring this type of housing if it is quality property that is well kept. The value of these houses seems to increase each year. The best part I see and the relevance to the multiple streams of income comes in the form of demand. Demand for college and university education is becoming more of a necessity and housing close to campus is in demand. If your student(s) leaves it is highly likely you will have more customers or a wait list very soon. I will continue reading this great blog. Thanks.

    • 28 Feb 2012 | Permalink | Reply

      Young Investor, college rentals are a great stream of income. I live in a city where the colleges are growing and yes, I’m taking advantage of that by provided a unique type of housing for those special students, not the party animals.

Leave a comment

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Your email is never shared. Required fields are marked *


SEO Powered By SEOPressor
%d bloggers like this: