What are the best passive income investments?

Good Question!

The two best passive income investments are corporate income bonds of privately held companies (not publicly held or government bonds). Government and public bonds the real rate of return after factoring in inflation is too low to invest in.

The hidden jewel or diamond that all the investors miss is being a limited partner in a large (more than 100 unit) apartment complex community.

For example, you find an experienced investor that is buying a 30 million apartment complex. He already has been to the bank and obtained a 20 million loan but he still needs the down payment money and capex money. You can invest with his group as a limited partner. You would invest 100,000 minimum (typically) to as much as 1,000,000+

The beauty of this is once you invest you don’t have to do anything and typically in 3 to 7 years you get your money doubled. During the holding period you also typically get distributions depending on how the deal is structured.

It is much easier than getting on the front line with tenants and toilets or trying to have a property manager interface with you and the tenants. Most people are not aware this option exists.

You do have to know an apartment complex investor that is buying a large multifamily. These sorts of investors already have a base of investors they work with so you want to find them and approach them in the right way where you let them know you like what they are doing with investing in these other apartment complexes and you hope on their next deal they will let you invest.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com