Real Estate Passive Income Derived From Cash Flows And Net Income

Dec 12, 2016

The true beauty of commercial income property is the ability to gain passive income derived from cash flows and net income paid by the existing tenants.

Whether the investor chooses retail, office, warehouse, apartments, medical buildings, or assisted-living, the results remain the same.

If you choose wisely, you can gain passive income through cash flows and net income directly from the tenant’s rental payments. The expenses that landlords incur running the income property are deducted.

passive income in commercial real estate

Investors can get passive income through Triple Net properties or other forms of partnerships.

Westwood provides the potential investor a wide variety of income-producing properties. The choice of deciding which direction to go in is solely up to the real estate investor.

From the very start, the investor must decide what goals they have for the future years of an investment.

This determines greatly which property and which asset group Westwood would suggest looking into.

For example, does the investor simply want a steady income stream to add to their present job income. Or is he looking far greater appreciation of value for his future retirement years?

passive income opportunities

There are a wide variety of real estate asset groups, some require a great deal of effort to maintain, lease and fix.  It can be hard to decide from the very beginning does the investor want to go out on his own or go with experienced professionals to do all the work and simply provide a monthly check to you.

Of course, the expectation of higher or lower cash flow, net income will determine how much effort and risk the investor wants to take owning investment property. Age plays a factor in selecting the right path for the investor.

Apartments, office buildings, and multi-tenant shopping centers are the most work versus Triple Net,  Single Tenant retail property with the least efforts.

5 to 7% returns today are the norm, tax-sheltered by depreciation and expected appreciation for future years with a 1031 trade delaying any capital gain that may occur.

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