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

Due to their special tax status, REITs should follow strict compliance standards and therefore carry a certain excellent standard for both the vehicles investment strategy and the property experience of the managing team.

There are two primary kinds of public REITs: traded and non-traded. Publicly-traded REITs offer the benefits of liquidity, because it is traded openly on a stock exchange. However, this liquidity is very likely to be priced into the value of these stocks, resulting in a liquidity premium, or a cost that all investors pay for the ability to buy and sell the asset whenever they wish.

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

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On the other hand, public non-traded REITs have become more popular, due to their potential double dividends. However, public non-traded REITs have recently come under heavy scrutiny due to the large upfront fees often charged to investorsand questionable practices around the disclosure of those fees.

In the last couple of decades, pioneering new platforms such as Fundrise have emerged. Fundrise intends to offer you the benefits of personal market access, but with lower fees that potentially help investors earn better returns. Leveraging technology and new national regulations, Fundrise provides investors that the very first ever diversified commercial real estate investment portfolio available right online to anyone in the United States, no matter their net worth.

Irrespective of which investment strategy you opt to pursue to earn residual income, an essential part of the investment process is careful due diligence of every opportunity as it arises and working hard to remove any pre-existing biases. Take your time to figure out which strategy makes the most sense for you, and carefully compute your residual income goals.

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Find out what's happening in Building Residual Income Meetup bands around the world and start meeting up with the ones near you.

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

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

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

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So, if the objective is to have 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 maybe dont great post to read have an age limit into our 60s What guarantee do we have that we will make it long.

Additionally, what control do we really have over Social Security and our 401Ks Looking at the origins of residual income, lets take a look at other high tech places we can diversify. Who knows, maybe you could start generating residual income now and step into that time freedom sooner than your 60s.

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

Residual income has two real definitions. Lets look at these . Residual Income is income that continues to be generated after the initial effort has been expended. Compare this to what most people focus on earning: linear income, which can be one-shot compensation or payment in the form of a fee, wage, commission or wages.

We believe that income that exceeds your expenses is called PROFIT! Thus, we're going to use the first definition for the sake of the document. .