Passive income has become a big buzzword. The allure of collecting steady paychecks without “actively” working for it is stronger than ever.

One of the most popular ways to create a passive income stream is through real estate — at least in theory.

The process goes something like this: You borrow money from a bank, buy a property, and the tenant pays off your mortgage and then some. Once you accumulate more equity, you repeat the process, buy more properties, scale up … and boom! You are a real estate mogul.

But the reality is different.

If you want to be a landlord, you need to find reliable tenants, collect rent, and handle maintenance and repair requests (out of your own pocket).

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What about a property manager?

A good property manager can make life easier, but personal finance expert Dave Ramsey points out that the income is still not as passive as it seems.

“Even if you are managing the managing company, they’ve still got to call you and approve the $8,400 new heating and air system that blew up, or the other day I had a $26,000 one go out on one of our commercial buildings,” he says on a recent episode of The Ramsey Show. “Didn’t feel passive to me at all.”

Ramsey still likes real estate as an asset class but warns that investors should know what they are getting into.

“I love real estate. It does give you a better rate of return that other investments don’t have, but when I hear someone say passive income and real estate in the same sentence, it means they’ve been on get-rich-quick websites.”

So how can you invest in real estate and make it as hassle-free as possible?

Here are three ways to consider.

REITs

REITs stands for real estate investment trusts, which are companies that own income-producing real estate like apartment buildings, shopping centers, and office towers.