The Average Millionaire Has 7 Sources Of Income - Here Are 3 You Can Start Building Today

Benzinga Money is a reader-supported publication. We may earn a commission from the advertisers associated with this article. Read our Advertiser Discloser.

Business,Man,,Rich,,Millionaire,,Billionaire,,With,Many,Banknote,Dollars,Money

Collect passive income from real estate without taking on the headaches of being a landlord. You can now take advantage of the higher-for-longer interest rate environment by investing in a portfolio of private real estate debt with as little as $100.

A recent IRS report sheds light on the effects of multiple income streams on wealth. It revealed that an average millionaire has seven different revenue streams. There are no guarantees in wealth-building, and establishing various sources of income is paramount. If one goes into the sewer, the others will mitigate its negative effect on your portfolio.

The potential for higher returns at a reduced risk is also present. Sometimes, one of your cash-yielding investments can be highly successful and outshine all others. Millionaires have experienced both outcomes.

The question isn’t whether you should establish multiple income streams but how you do it without breaking the bank and taking on too much. Here are ways to secure passive dividends quickly.

Fractional Real Estate

Buying shares of homes allows you to invest in one of the most robust asset classes at a significantly reduced upfront cost. Your stake appreciates, providing rent dividends. Additionally, a team of professionals manages everything from maintenance to tenant signing.

Arrived is a trusted platform in fractional real estate backed by Jeff Bezos Arrived has produced impressive historical returns for its community of over 605,000 investors. Each home listed by Arrived has been expertly vetted, with only 0.2% of considered homes making the cut. You can invest in these homes for as little as $100. For a diversified option, you can invest in Arrived’s Single Family Residential fund, which comprises these homes.

Click here to view fractional rental properties you can invest in today on Arrived.

Private Credit

When you invest in private credit, you act as a bank. Companies that borrow money pay interest rates until the maturity date when they fully return the principal. Private credit has been booming due to high interest rates and is one of the hottest investments. Jon Gray, president of Blackstone, referred to the current opportunity as the “golden moment” for investing in private credit. Everyone from regular investors to financial behemoths is all-in on private credit. The market is expected to grow from $1.6 trillion to $2.8 trillion this year, a 75% spike in one year.

How can you secure this passive income stream while interest rates are still high? Arrived’s Private Credit Fund is one of the easiest ways. Apart from offering home equity and shares of a diversified REIT, Arrived uses its expertise to pool investors' funds and finance real estate projects. It provides 7-9% annualized returns with monthly dividend distributions, making it a solid option for passive income.

Click here to invest in the Private Credit Fund with as little as $100

Short-Term Notes

Investing in short-term notes is similar to investing in private credit, as you are financing businesses. The difference is that a note tends to have a shorter duration, allowing you to get high yields without too much risk. Upon maturity, you can reinvest the gains or transfer the funds to your bank account.

Connect Invest's short-term notes are cash management instruments similar to CDs, T-bonds, and money market funds. However, they’re backed by real estate, which offers an essential layer of protection. These high-yield, short-term real estate notes earn 7.5% to 9%, and the company’s transparency makes it easy to learn about its practices and record of returns and expenses.

Investors earn interest on those loans, which is paid out monthly. When the note reaches maturity, the full principle is paid out. The company offers notes with terms as short as six months, which is particularly advantageous in today’s turbulent financial landscape.

Click here to put your cash to work with short-term notes from Connect Invest

Check out these other high-yield passive income investments

Start building multiple income streams with these high-yield opportunities.

Hold on!

Investors are seeing outstanding returns through curated real estate investment alerts. Sign up to get them sporadically and don’t miss out on offers you’d likely never hear about.

More From Benzinga

Disclaimer: Please be advised that alternative investments carry a risk of monetary loss. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. All information contained on this website is provided as general commentary for informative and entertainment purposes and does not constitute investment advice. Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.