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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), large portfolios of income-producing real estate investments. A REIT is required by law to distribute 90% of its earnings to investors each year. Today, an estimated 70 million Americans invest in REITs.

Due to their special tax status, REITs must follow strict compliance standards and thus carry a certain quality standard for both the vehicles investment plan and the real estate experience of the managing team.

There are two primary types of public REITs: traded and non-traded. Publicly-traded REITs offer the benefits of money, since it's traded openly on a stock exchange. But this liquidity is likely to be priced into the worth of the shares, resulting in a liquidity premium, or a cost that all investors pay for the capability to get and sell the asset whenever they wish.

What's more, publicly-traded REITs tend to be correlated to wider market volatility, meaning that the share value may fluctuate depending on the way the stock market is doing, regardless of whether or not anything has changed with the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs are becoming more popular, because of their potential double dividends. But, public non-traded REITs have recently come under heavy scrutiny because of the large upfront fees often charged to investorsand questionable practices around the disclosure of these fees.

In the past few years, pioneering new platforms like Fundrise have emerged. Fundrise aims to offer the benefits of personal market accessibility, but with lower prices that potentially assist investors earn better returns. Leveraging technology and new federal regulations, Fundrise offers investors that the first ever diversified commercial real estate investment portfolio accessible directly online to anyone in the United States, no matter their net worth.

Irrespective of which investment plan you decide to pursue to earn residual income, an essential portion of the investment process is careful due diligence of every opportunity as it arises and working hard to remove any pre-existing biases. Take time to determine which approach makes the best sense for you, and carefully compute your residual income goals.

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Find out what's happening in Building Residual Income Meetup groups around the globe a knockout post and start meeting up with the ones near you.

When looking at income in the future, shouldnt we're looking at what's going to happen and determine whether that's what we want life to look like We need to work backward from that point until we reach today, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is thats the goal of retirement or what we like to call time freedom. .

When you retire, your Social Security income and pensions, if they are left, plus dividends and interest off of your investments and maybe anonymous an income annuity will meet your needs and hopefully exceed them, so you can walk away from your day job.

Dividends and interest are a form of residual income. Social Security certainly is, the government takes money from us every paycheck and we get a small piece back when we retire (even though it is taxed in retirement again).

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So, if the objective is to get residual income when we retire, that seems based on Social Security rules to only be possible in our 60s, and the government has mandated penalties prior to taking our money before 59.5, wouldnt it be prudent to begin investing in sources of residual income now that perhaps dont have an age limit into our 60s What guarantee do we have that we'll make it that long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the origins of residual income, lets take a peek at other high-level places we can diversify. Who knows, maybe you could begin generating residual income now and step use this link into that time independence sooner than your 60s.

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Taking inventory of where you're at is so crucial. Are you currently doing one of these seven Dont be confused, not all businesses or investments are remaining, in our own opinion.

Earning income has two actual definitions. Lets look at those first. Residual Income is income which continues to be generated following the initial effort has been expended. Compare this to what the majority of men and women focus on earning: linear income, which is one-shot compensation or payment in the form of a commission, wage, commission or wages.

We think that income which exceeds your expenses is named PROFIT! Thus, we are going to use the first definition for the sake of this document. .