What the Rich know About Passive Income that you Don’t

RealtyReturns.io
3 min readJul 20, 2018

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The top 1% all have one thing in common, they all have passive income. Passive income is the secret wealth generator that the rich have enjoyed for ages. It’s income earned that doesn’t require effort on your part. It’s income that earns 24 hours per day seven days per week and is working while you are sleeping. Whether you are on vacation, taking a sick day, or just don’t feel like getting out of bed in the morning your capital is still working for you.

True passive income is difficult to generate, most investments require some maintenance and a watchful eye. While it’s true that CD’s, stock dividends, bonds, notes, and other investment vehicles can produce income without you lifting a finger they only produce a modest income, and dividends aren’t guaranteed. And while you can make more money from appreciation of equities over real estate in the short term, the volatility of the stock market keeps many investors at bay. Real estate is the most powerful source of passive income because of rental income. Everyone falls into one of two camps, you either own your home or business, or are renting from someone else, real estate is an absolute necessity. With Management companies settle all of the affairs of the tenants and maintaining the property, you collect the checks and build wealth.

Because equities over the last few decades have outperformed real estate in returns it gets more hype and support from the investment community, and is deemed as a better growth option, but is it? According to new research equities only recently have began to earn more over real estate, but when you look at the aggregate starting in 1870 real estate has actually provided a higher return.

The research further explained that investing in real estate internationally not only provided diversification, but also a higher return.

“The ideal investor would like to hold an internationally diversified portfolio of real estate holdings, even more so than equities.” The Rate of Return on Everything, 1870–2015

In an ideal world people would invest in real estate for the high returns, rental income, and stable market, but still have the liquidity that the stock market provides. Sounds like a fantasy, until now.

Fractional real estate investing through blockchain technology provides the best of both worlds, you get the liquidity and diversification of an equity investment combined with access to diversified international investments around the world. Blockchain security tokens represent legal ownership of fractional real estate and are a unique way of digitizing assets on the blockchain– providing 24 hour access to global investors that hold cryptocurrency.

Blockchain technology through online real estate platforms has made this a reality. Through ERC-20 smart contracts on the Ethereum platform you can buy and sale real estate tokens through the exchange, creating more liquidity than ever before. Because the cryptocurrency market is in the hundreds of billions of dollars an exchange provides an easy accessible place to buy and sale with cryptocurrency. You can now reap the benefits of passive income through real estate ownership, and have the liquidity of the stock market.

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Democratizing global access to investment grade commercial real estate using the blockchain. Visit RealtyReturns.io and join our Telegram group https://t.me/realtyreturnsglobal

Trevor Whiting

VP, Investor Relations

RealtyReturns

Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.

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