You can make passive income from real estate investments, even if you're a beginner when it comes to investing. Passive real estate income is great for beginners because you can make it from home and use various strategies that help you reduce risk.

Every passive income strategy has its own benefits and risk. Whether the strategy suits you depends on your goals and resources. Remember, you need to invest a lot of time in research to find and use passive income strategies in real estate—as with any other form of investment.

In this article, we give you the information you need to choose the most suitable real estate investment passive income strategy for you.

Real Estate Investment Trusts (REITs)
With REITs, you invest in real estate through investment companies that buy and manage real estate property—typically commercial real estate. In this case, you invest in a portfolio. The passive income comes from receiving a portion of the income from the investment properties that the company manages.

All you need to do is research available REITs on the market and identify the ones that offer you the highest return for your investment. Give preference to REIT companies that are highly transparent about the performance of their investments.

Real Estate Crowdfunding and Syndication
Real estate crowdfunding is a relatively new way of obtaining passive income from real estate investments. You visit a real estate crowdfunding sites and invest in either an individual investment property or a portfolio. As is the case with REITs, you don't need to worry about management of the property. You just need to monitor your investment and its returns.

One main advantage of real estate crowdfunding is as little as $500 can get you started. It's a great option for beginners in real estate investing. Just be sure to research extensively and identify real estate crowdsourcing sites that are lucrative and trustworthy.

Real estate syndication is the broader category to which real estate crowdfunding belongs. It involves investors pooling their funds and buy real estate property. You can generate passive income with other sources of real estate syndication, such as investing through a real estate company or partnership.

Turnkey Rental Properties
Turnkey rental companies identify viable investment properties and the tenants to occupy the property. To get the most out of this strategy, give preference to turnkey rental companies that that also offer professional property management services. That way, most of your work will be done after you research extensively and identify the best company.

Can Rental Properties Generate Passive Income?
Yes! Making a few modifications to your real estate investing strategy can turn rental property into a source of passive income. You can apply these strategies to multi-family homes, single family homes, and Airbnb properties.

To create passive income from your rental properties, you need thing important things: a rent property calculator and property management services.

A rental property calculator reduces the time you need to search for viable investment property. Once you buy the investment property, the next step to securing a passive income is having a property management service to manage the property.

What About Becoming a Landlord?
Generating passive income and becoming a landlord are not synonymous. Being a landlord involves a lot of work whereas the whole point of passive income strategies is having an income stream that requires minimal work. There's an overlap, though.

For example, with a "lease up only" contract, a property management company sets up tenants in your property. The company markets the property through ads and screens tenants through interviews. After tenants move in, the contract is up and you have no-hassle tenants, provided the property manager did their job right.

Once the tenants settle into the property, you hire a handyman to handle any arising maintenance issues. Instead of collecting checks, you automate rent collection. Taking these steps effectively makes your rental property a source of passive income.

Conclusion
Real estate passive income strategies can be life-changing and provide you with financial security whether you're a beginner or seasoned investor. You'll need to invest a substantial amount of time and money upfront to set up the investment, but it will be worth it.