How to Generate Passive Income via Real Estate with Limited Funds

Commercial Real Estate Investment: Budding source of Passive Income

Passive income is the hottest buzzword, with many individuals looking for methods to generate without sacrificing their time. But producing passive income might be intimidating, particularly if you don’t have any or limited starting funds to invest. But don’t worry, there are still lots of methods to generate passive income without spending a thing. Commercial real estate investment is the greatest method to do this. You may earn passive income via real estate through the low-cost choices available.

Passive Income Meaning

Passive income is earned by doing less or zero effort. Your earning interest on the bank FDs is a good example. You do not work for the sake of working. Simply keep a balance in the savings account, and the bank will give you interest. This interest money becomes your passive income as a result.

Another example is commercial real estate investment for passive income. True, owning and maintaining a rental property is not considered passive income real estate. After all, investing in a rental property requires a huge amount of money. However, there are various types of commercial real estate investments that need less money, time, and effort.

Real Estate Passive Income Meaning

Passive income real estate is a way of generating cash from real estate with zero active engagement.

If you’ve done real estate investments, you know it’s not a passive income investment every time. Yes, gathering rental checks is important. However, you will need to notify the tenant that it is the beginning of the month every time. Also, when maintenance issues develop, you have to hire a contractor.

But, there are countless ways to make passive income in real estate with zero effort. These real estate strategies below may be used to generate fully passive income revenue in ways. The best part is that you do not really require to have crores and crores of money to invest in these.

Ways to Generate Passive Income via Commercial Real Estate Investments with Limited Funds

Real Estate Crowdfunding:

An initial investment is required for  real estate crowdfunding . However, platforms such as Assetmonk enable you to invest in real estate projects with INR. 25 lacs. Furthermore, real estate crowdfunding platforms handle property management, so you don’t have to worry about dealing with renters, maintenance, or other hassles that come with owning actual property.

This is a fantastic alternative for people who want to produce passive income from real estate but don’t want to deal with the inconveniences of property management. Real estate crowdfunding is a technique for obtaining funds and funding high-end real estate projects that need debt financing. A fixed percentage of return on such an investment may be acquired over a rather long period of 8 to 10 years.

Fractional Ownership:

Fractional ownership investment enables you to invest and own a stake in a commercial real estate investment. Multiple investors can put their money in premium buildings such as residential complexes, office spaces, warehouses, and industrial facilities. Every investor owns a chunk of the property.

The property’s profits get distributed to the investors proportional to their investment stake. Alternative investment platforms such as Assetmonk may allow you to invest in fractional ownership assets with INR.25 lakhs. Individual investors can create rental income, and grow their portfolios with modest funds via fractional ownership.


REITs are firms that combine capital from multiple investors. It is then invested into real estate properties that produce income. You do not own the property physically. In India, you invest in a REIT with just INR.10k to INR.15k. A REIT firm buys and sells the property and generates money from this. They will also rent the property on behalf of the investors. Investors then get dividends via rental income or earnings.

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Structured Debt:

Real estate structured debt is another viable passive income real estate option to explore. These investments entail providing financing to real estate developers or property owners with a promise for a set return on investment. Real estate structured debts might be a great alternative for anyone looking for short-term investments with consistent and predictable profits.

Furthermore, the underlying real estate asset is usually used to underlie these investments, which can offer an added degree of protection. You may invest in structured debt via alternative investment platforms such as Assetmonk for INR. 10k and get an IRR of 16 percent to 19 percent.

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P2P Lending

You can invest in loans to people or businesses using peer-to-peer lending platforms like LenDenClub. Even if you have INR.10k, it’s a terrific method to produce passive income over time. Many peer-to-peer lending systems have a minimum investment amount, which is frequently low. Begin with a little investment and progressively raise it as your assets generate more money.

Reinvest the money you make on your peer-to-peer loans to build your portfolio. This can help you produce even more passive income money in the long run. To reduce risk, it is critical to diversify your assets over various lenders. This entails making loans to a wide range of consumers with varying credit scores and loan amounts.

Bottom Line

Passive income real estate is a fantastic way to supplement your income with zero work and limited funds. So, pick any of the passive income commercial real estate investment options listed above.

However, let us acknowledge that commercial real estate investments can be intimidating, especially if you are new to them. And what better way to do so than to collaborate with alternative investment platforms? Any commercial real estate investment investor must choose a trustworthy investing platform. And the best is Assetmonk. Assetmonk allows investors to purchase high-end A-grade investment alternatives at a low cost. They promise high liquidity and transparency, as well as IRRs ranging from 12 percent to 21 percent.

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Q1. How can I earn passive income from real estate in India?

A. You can earn passive income from real estate in India by investing in REITs, fractional ownership, P2P lending, real estate structured debt, and real estate crowdfunding.

Q2. Why is real estate best for passive income?

A. Real estate is the best passive income source because you earn monthly rental income, capital appreciation, and dividends. It is also the best passive income source since you need not manage the property on your own.

Q3. What are the easiest passive income ideas?

A. The easiest passive income idea is real estate. Somebody can manage and run the property for you.

Q4. What is the difference between active income and passive income?

A. Money generated with less effort is referred to as passive income. Active income demands a substantial investment of time and energy.

Q5. Is dividend passive income?

A. Dividends paid out on a quarterly, monthly, or annual basis are a fantastic source of passive income.

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