Passive income is in high demand today. Where are the investments that can really deliver it best?
A few years ago the most intense need and appetite was for higher-yielding investments. There just didn’t seem to be many options that boasted good yields. While it can still require more work to find high yielding investments today, the biggest need and desire among investors today is clearly for passive income.
This is true among well-paid working professionals, executives and CEOs, and even the biggest sovereign and pension funds and governments. We’ve gained a new appreciation for the need for passive income and have a new urgency to secure multiple streams of income. It’s vital for retirement, for funds and governments to meet current financial commitments and disbursements, and for individuals to find more time and peace in their lives.
More Than Income
Before rushing off to buy into the first dividend stock you can find, it is crucial to remember that, while income is a top priority, that can’t come at the cost of ignoring everything else. That would be like choosing to put everything you’ve got on one number on the roulette table or into a pre-construction vacation condo on an exotic island that ‘promises’ to deliver 70% growth, just because you want high returns.
When it comes to investments we still also need:
- To ensure we are getting truly passive income
- That our capital is secure
- The returns are high enough to beat inflation and costs
- Ability to simultaneously build wealth
- To make tax-smart investments
It may seem challenging to get all this in one package. Yet, each of these shouldn’t have to be a one or the other choice. The more you can get in a single investment or asset class the better.
Where on Earth are You Going to Get All That?
Pull out the above checklist and you can pretty much write-off stocks, bonds, CDs, public REITs, funds of funds and tech startups. Many individual and institutional investors who have done very well in single-family rental homes over the past decade are even moving on from that because it is so much work, asset prices are so high and yields are being compressed.
So, what does that leave?
Multifamily Property Investing
Investing in multifamily apartment buildings seems to check all the boxes today. It is one of the best real estate sectors for truly passive income and higher net yields. Real estate is also well respected for its brick and mortar security and long-term wealth building capabilities, as well as tax advantages. It is a popular asset class among the most sophisticated wealth investors and fund managers. Yet, also accessible to individual investors who want to step up with sound investments. The big question is, do you have enough multifamily real estate in your portfolio?
ABOUT THE AUTHOR
Bill Zahller is the President of Park Capital Properties and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Properties in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalProperties.com for more information.