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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 every year. Now, an estimated 70 million Americans invest in REITs.

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

There are two primary kinds of people REITs: traded and non-traded. Publicly-traded REITs give the benefits of money, since it's traded openly on a stock exchange. But this liquidity is very likely to be priced into the value of the stocks, resulting in a liquidity premium, or a price that all investors pay for the ability to buy and sell the asset whenever they wish.

What's more, publicly-traded REITs tend to be connected to broader market volatility, meaning that the share value may fluctuate depending on how the stock exchange 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 popular, due to 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 dubious practices around the disclosure of these fees.

In the past few years, pioneering new programs such as Fundrise have emerged. Fundrise intends to offer the benefits of personal market accessibility, but with reduced prices that potentially help investors earn better returns. Leveraging technology and new federal regulations, Fundrise offers investors that the 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 plan you opt to pursue to earn residual income, an essential portion of the investment procedure is careful due diligence of every opportunity as it appears and working hard to eliminate any pre-existing biases. Take time to determine which approach makes the most sense for youpersonally, and carefully compute your residual income objectives.

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

When looking at income in the long run, shouldnt we be looking at what's going to happen and determine if that's what we want life to seem like We need to work backward from that point until we achieve today, 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 plus pensions, if they're left, plus dividends and interest from your investments and perhaps an income annuity will meet your needs and hopefully surpass them, and that means 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 is taxed in retirement again).

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So, if the goal is to get residual income when we retire, which appears 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 start investing in resources of residual income now that maybe dont have an age limitation find more into our 60s What guarantee do we have that we'll make it long.

Additionally, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets have a peek at other high-level places we can diversify. Who knows, perhaps you could start generating residual income now and step into that time independence sooner than your 60s.

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

Earning income has two actual definitions. Lets look at these . Residual Income is income that continues to be generated following the initial effort has been expended. Compare this to what the majority of people focus on earning: linear income, that is one-shot compensation or payment in the kind of a fee, wage, commission or salary.

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