5 Best Ways to Generate Passive Income for Beginners

2. Invest in Real Estate Investment Trusts (REITs)

Even without funds for entire apartment buildings, you can generate rental income with a minimum investment of $500 through real estate investment trusts (REITs) on platforms like Fundrise. A REIT, managing profitable real estate collectively, enables smaller investors to access diverse investments. As assets appreciate, investors earn passive income. This long-term strategy is ideal for those with startup capital, but success requires thorough research. Resources like guides can aid in navigating this investment, making REITs a viable option for individuals seeking real estate income without the financial capacity to purchase entire properties.