{"id":1804,"date":"2022-06-20T17:38:06","date_gmt":"2022-06-20T17:38:06","guid":{"rendered":"https:\/\/blog.ark7.com\/?p=1804"},"modified":"2024-02-12T23:59:51","modified_gmt":"2024-02-12T23:59:51","slug":"how-to-buy-fractional-real-estate-for-passive-income","status":"publish","type":"post","link":"https:\/\/ark7.com\/blog\/learn\/in-depth\/fractional-real-estate\/how-to-buy-fractional-real-estate-for-passive-income\/","title":{"rendered":"How to Buy Fractional Real Estate for Passive Income"},"content":{"rendered":"
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Passive aggressiveness is annoying. So are the pointed and often anonymous notes that passive-aggressive types like to leave in their wake. Passive income, on the other hand, is a beautiful, beautiful thing.<\/span><\/p>\n

This type of income is just what it sounds like: income generated with minimum effort. It is revenue generated even while you sleep soundly, dreaming of all the things your passive income can help you buy. Sign me up!<\/span><\/p>\n

Best way to earn passive income<\/b><\/h2>\n

Passive-income pundits have no shortage of creative ways to earn passive income. From selling stock photos or writing an e-book to creating Udemy courses or starting a YouTube channel, passive-income opportunities are seemingly all around us. I don\u2019t know about you, but writing a book or creating coursework doesn\u2019t seem that passive to me. I can\u2019t sleep while writing a book. Trust me, I\u2019ve tried.<\/span><\/p>\n

Those looking for a genuinely passive income-generating experience with sleep opportunities galore will find real estate investing one of the best passive-income scores.<\/span><\/p>\n

Barriers to real estate investing<\/b><\/h2>\n

Real estate investing is easier said than done, particularly when you consider the current nuttiness of the real estate market. For example, in January 2022, 70% of homes on the U.S. housing market ended up in a bidding war situation, representing the highest rate on record. So, unless you come from a fifth-generation, passive-income stock, you might find real estate investing to be financially unattainable\u2014even if it is of profound interest.<\/span><\/p>\n

Other costs also start to add up around homeownership. You’d have to contend with legal fees, property maintenance costs, and realtor fees. That last one averages almost $18,000 alone. All of these costs make real estate investing out of reach for the average millennial wannabe real estate mogul.<\/span><\/p>\n

Or is it? Enter <\/span>fractional real estate investing<\/span><\/a>.<\/span><\/p>\n

What is fractional real estate investing?<\/b><\/h2>\n

Fractional real estate investing, lets you own a portion of a property in partnership with multiple unrelated parties. Then, when the co-owners want to sell their shares in the property, the cooperative’s shares are transferred to the new owner of the shares. Fractional investing real estate is well worth exploring for investors who have money to invest and want to diversify their property holdings rather than invest everything in one property.<\/span><\/p>\n

Fractional ownership opportunities exist for a wide range of property types, including commercial properties, warehouses, vacation rentals, and even potentially farmland. Simply put, fractional real estate investing lowers the barrier to real estate investing, a type of investing that has historically been an asset class with a high barrier to entry. Recent shifts in business models are fundamentally changing the way we think about asset ownership.<\/span><\/p>\n

How does fractional real estate investing work?<\/b><\/h2>\n

Getting started<\/span><\/a> is straightforward as long as you meet the following criteria:<\/span><\/p>\n