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Earn rental income

Many people, like Sheridan, have come to recognize the potential of real estate as a powerful wealth-building tool. Well-chosen properties can provide a reliable stream of rental income, making it a favored choice for those looking to build multiple income streams.

Beyond providing regular cash flow, real estate is also viewed as a dependable hedge against inflation. As inflation drives up the cost of materials, labor, and land, property values tend to rise as well. This not only preserves the purchasing power of the investment but also helps property owners build long-term equity over time.

Of course, most of us don’t own multimillion-dollar properties or have connections to production studios willing to pay $50,000 a week in rent.

The good news? You don’t need to buy a property outright to start earning rental income.

Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Get Started

at arrived.com

If you're an accredited investor looking for new opportunities, another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.

The platform lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart.

Investors have the opportunity to collect stable, grocery store-anchored income every quarter.

Learn more

at fnrpusa.com

Agricultural land

Acquiring agricultural land might seem like an ambitious investment, especially when it involves hundreds of millions of dollars, as in Sheridan’s case. However, there are compelling reasons why investors like Sheridan see farmland as a valuable asset class.

Farmland generates income through crop production or leasing land to farmers, creating a consistent revenue stream. Moreover, the demand for agricultural products remains ever-present because, regardless of economic conditions, people will always need food.

This consistent demand makes farmland resilient during economic downturns, offering investors a reliable hedge against uncertainty.

Farmland also serves as a natural inflation hedge. During inflationary periods, rising food prices often drive up land values, helping preserve investors' purchasing power.

It’s no surprise that Sheridan isn’t alone in appreciating this asset class. Microsoft co-founder Bill Gates, for instance, has amassed approximately 275,000 acres of farmland across the U.S., making him the largest private farmland owner in the country.

But you don’t need to have the wealth of Sheridan or Gates to invest in U.S. farmland. Two publicly traded REITs — Gladstone Land (LAND) and Farmland Partners (FPI) — offer investors exposure to this sector without the need for direct land ownership.

If you are looking for options outside the stock market, FarmTogether is an all-in-one investment platform that lets qualified investors buy stakes in U.S. farmland. The platform identifies high-potential agricultural properties and then partners with experienced local operators to manage the land effectively.

Depending on the type of stake you want, you can get a cut from both the leasing fees and crop sales, providing you with a cash income. Then, years down the line after the farm rises in value, you can benefit from appreciation of the land and profits from its sale.

Learn more

at farmtogether.com

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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