Terms Every Real Estate Investor Should Know

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Terms Every Real Estate Investor Should Know

Making money is something everyone does, but the problem is that there may not be enough left over after all the expenses are paid off. This is where passive income comes into play. Passive income is a separate source of income you can have on the side. One of the best ways to triple your money and have a passive income is to look into investments. Investments are a financial responsibility, yes, but if you handle things properly, you could see a considerable profit. But with so many options to choose from, how can you determine the best ones? In this post, we’ll be covering the best investments to make passive income.

Real Estate

When you think about it, everyone invests into real estate in some form. It can range from purchasing a house a with a mortgage to buying share in a rental property. There are all sorts of different ways you can invest into real estate. What’s more is that it’s also one of the safest investments you could ever participate in. For beginner investors, it’s recommended that you look for rental properties. We already covered one way to invest into a rental property, but rest assured, there are plenty of other lucrative options available at your disposal. If you’re having a difficult time figuring things out, you can always learn more about the most common types of rental properties.

Dividend Stocks

A dividend stock is when a company distributes whatever earnings it made to its shareholders. They’re essentially a reward for those who contribute to a company’s equity. These payments are usually quarterly and are ultimately determined by the board of directors. You can get dividends in just about any company that offers them, but some of the best ones to invest in include:

  • Banks and other financial institutions
  • Healthcare facilities
  • Companies that provide gas and oil

There’s a lot to learn about dividends, but it’s crucial for you to understand how the dates work. There are four dates: announcement, ex-dividend, record, and payment. Announcement is when the company issues a date you can claim your earnings. The ex-dividend is how long you have until it expires. The record date is when your earnings are cut off and when the company determines who is eligible. Lastly, the payment date is when shareholders receive their due payments.


Bonds are one of the original forms of investing. How they work is that you purchase a few bonds from a bank or the government itself, wait until it reaches its maturity date and then cash out. There are all sorts of types of different bonds including:

  • Corporate
  • High-yield
  • Fixed rate
  • Treasury

Once you’ve chosen a bond that interests you, make sure to research how it works, so you won’t have a problem down the road.


The traditional stock market was once a playground for wealthy people back in the day. However, times have changed and now just about anyone can participate in it. In the stock market, you simply choose a company offering shares, purchase them and keep an eye on their value. Real estate shares work more or less the same, except you won’t have to worry about the fluctuating rates.

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